(1) 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
(2) 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.
(3) 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.