Registration can have an important effect on the Priority of competing security interests.

Broadly speaking, there are two systems for registration of security interests:

1. •

   registration against the entity providing the security, and

2. •

   registration against the asset which has been secured

This Practice Note is concerned with the first system of registration where the entity providing the security is a company formed and registered under the Companies Act 2006 (a 'UK company') and explains:

1. •

   the requirement to register at Companies House

2. •

   whether registration constitutes constructive notice to other creditors

3. •

   whether registration constitutes constructive notice to other creditors of a negative pledge

4. •

   the consequences of failure to register security at Companies House and the effect of registering security at Companies House as against the effect of registering security at other asset registries

For information about how registration against an asset affects priority of security interests, see Practice Notes:

1. •

   Effect of registering security at HM Land Registry/Land Charges Department on priority of security interests