On 3 July 20X8, ABC bank lends £100,000 to Goga plc. It takes a floating charge over Goga’s entire assets. The bank included a clause as part of the charge prohibiting Goga plc from creating any subsequent fixed charge over its assets.Which charges will take priority over ABC bank’s floating charge?（2 marks）

A  Fixed or floating charges made before 3 July 20X8

B  Only fixed charges made before 3 July 20X8

C  Only floating charges made after 3 July 20X8

D  Only fixed charges made after 3 July 20X8

解析：

Task 3:A

Normally fixed charges take priority. The effect of the clause is that ABC bank will protect itself from the subsequent creation of a fixed charge over Goga plc’s property. Earlier floating charges will take priority because of the time at which they were created.