• 33. 33. Debentures

    Sections 690 to 692 apply to LLPs, modified so that they read as follows —

    • 690. Power to re-issue redeemed debentures

      (1) Where an LLP has redeemed debentures previously issued, then unless —
      (a) provision to the contrary (express or implied) is contained in any contract made by the LLP, or
      (b) the LLP has, by making a determination to that effect or by some other act, manifested its intention that the debentures shall be cancelled,
      the LLP may re-issue the debentures, either by re-issuing the same debentures or by issuing new debentures in their place.

      This subsection is deemed always to have had effect.
      (2) On a re-issue of redeemed debentures the person entitled to the debentures has (and is deemed always to have had) the same priorities as if the debentures had never been redeemed.

    • 691. Deposit of debentures to secure advances

      Where an LLP has deposited any of its debentures to secure advances from time to time on current account or otherwise, the debentures are not treated as redeemed by reason only of the LLP's account having ceased to be in debit while the debentures remained so deposited.

    • 692. Priorities where debentures secured by floating charge

      (1) This section applies where debentures of an LLP registered in the Abu Dhabi Global Market are secured by a charge that, as created, was a floating charge.
      (2) If possession is taken, by or on behalf of the holders of the debentures, of any property comprised in or subject to the charge, and the LLP is not at that time in the course of being wound up, the LLP's preferential debts shall be paid out of assets coming to the hands of the persons taking possession in priority to any claims for principal or interest in respect of the debentures.
      (3) "Preferential debts" means the categories of debts described in section 227 (preferential debts) of the Insolvency Regulations 2015.
      (4) Payments under this section shall be recouped, as far as may be, out of the assets of the LLP available for payment of general creditors."