This section applies if a security interest in property (the secured property) of a company under administration was a circulating security interest when the interest arose, but has stopped being a circulating security interest because:
(a) in the case of a PPSA security interest - the property has stopped being a circulating asset (within the meaning of the Personal Property Securities Act 2009); or
(b) in the case of a security interest that was a floating charge when it arose - the floating charge has since become a fixed or specific charge.
Note 1: A circulating security interest can be either a PPSA security interest to which a circulating asset has attached, or a floating charge, in the circumstances set out in section 51C.
Note 2: For the meaning of circulating asset, see section 340 of the Personal Property Securities Act 2009.
Security interest in circulating asset
Subject to sections 442C and 442D, in the case of a PPSA security interest, the administrator may deal with any of the secured property in any way the company could deal with the secured property immediately before it stopped being a circulating asset.
Subject to sections 442C and 442D, in the case of a security interest that was a floating charge when it arose, the administrator may deal with any of the secured property as if the security interest were still a floating charge.
Note: Section 442C deals with the disposal of encumbered property by an administrator. Section 442D makes the administrator's functions and powers subject to those of a secured party, receiver or controller.