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There is no legal limit on the borrowing powers of a Guernsey company, but its Memorandum and Articles may provide a restriction or require the consent of the members.
The consent of the Financial Services Commission is required for the borrowing of sums of £500,000 or more unless they are unsecured and repayable on demand or within a six month period or unless they are borrowed from a bank in the ordinary course of its business.
Security may be provided by the creation of a charge on real property which is situated in the Island. Any such charge must be registered at the Greffe. It is not possible to create a floating charge but a measure of security on specific items of personalty may be given.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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