Singapore legislation
Section 86
Section 86
Payments of certain debts out of property subject to floating charge in priority to claims under charge
(1)
Where —
a person is appointed as receiver or manager of the property of a company, or of the property in Singapore of a corporation, on behalf of the holders of any debentures of the company or corporation secured by a floating charge; or
possession is taken by or on behalf of debenture holders of any such property comprised in or subject to a floating charge,then, if the company or corporation is not at the time in the course of being wound up, debts that in a winding up are preferential debts and are due by way of wages, salary, retrenchment benefit or ex gratia payment, vacation leave or superannuation or provident fund payments, and any amount that in a winding up is payable pursuant to section 203(5) or (7), must be paid, out of any such property coming to the hands of the receiver or manager or other person taking possession, in priority to any claim for principal or interest in respect of the debentures and in the same order of priority as is prescribed by section 203 in respect of those debts and amounts.
(2)
In subsection (1), “floating charge” means a charge which, as created, was a floating charge.
(3)
For the purposes of subsection (1), the references in section 203(1)(e), (g) and (h) to the commencement of the winding up are to be read as a reference to the date of the appointment of the receiver or manager or of possession being taken as mentioned in that subsection, as the case requires.
(4)
Any payments made under this section must be recouped as far as may be out of the property of the company or corporation available for payment of general creditors.