Your client, Maxwell Ltd. (‘M Ltd.’), a leading manufacturer of washing machine components with factories in Manchester and the North East instructs you that it has arranged a £900,000 loan facility with Lancashire Bank. The loan is to be secured by fixed and floating charges over all M Ltd’s assets, including its book debts, which normally vary between £50,000 and £100,000.

Referring to relevant case law and statute, advise M Ltd. in relation to the following (each sub-question bears equal marks):
(a)How a floating charge differs from a fixed charge

(b)Whether the book debts will be subject to fixed or floating charges, and why

(c)What is meant by the ‘priority’ of charges, and

(d)What registration requirements must be complied with once the charge documentation has been completed and what the effect of not complying with those requirements would be.