Article 145 - Invalid security interests
(1) Where a
Company goes into administration or insolvent Liquidation, a Security Interest in all or substantially all of the Company's property is invalid where:
Security Interest is created in favour of a Connected Person and was created after a date two years prior to the commencement of administration or Liquidation; or
Security Interest is created after a date one year prior to the commencement of administration or Liquidation and the Company either was at the date of the creation or became pursuant to the transaction in respect of which the Security Interest was created unable to pay its debts as they fell due.
(2) Article 145(1) does not invalidate a
Security Interest to the extent of the value transferred to the Company or liabilities of the Company released as a result of the transaction giving rise to the grant of the Security Interest.