Law · Corporate Law
Zenith Ltd created the following registered charges over its assets: 1. 1st February: Floating charge in favor of Bank A. 2. 15th February: Fixed charge in favor of Bank B over the same class of assets. Bank B was unaware of the existing floating charge. 3. 1st March: Second floating charge with a negative pledge clause in favor of Bank C. In the event of Zenith Ltd's liquidation, what is the correct order of priority for repayment among the banks?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Bank A (1st), Bank B (2nd), Bank C (3rd)
- 2Bank B (1st), Bank A (2nd), Bank C (3rd)✓
- 3Bank C (1st), Bank B (2nd), Bank A (3rd)
- 4Bank B (1st), Bank C (2nd), Bank A (3rd)
Correct answer
Bank B (1st), Bank A (2nd), Bank C (3rd)
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