To assign or not to assign – that’s a real question

England and Wales

When taking security over assets, often the default position for lenders has been to take an assignment over assets where they can, in preference to alternative forms of security such as a charge. However, as recent case law has shown, this is not always the most effective approach and can result in unintended consequences. In this briefing we discuss the legal and practical consequences of taking an assignment, the due diligence to be considered and the potential alternatives to assignments such as fixed and floating charges.

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