SCHOOL OF LAW

MODULE CODE: LAW9020

MODULE TITLE: Finance and Security Law

LEVEL: LLM (Level 7)

YEAR: 2023 - 2024

ASSESSMENT: Assignment

CO-ORDINATOR: Mike Varney

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Instructions to Students

Question to Answer: You must attempt ONE of the questions below.

Date for Submission: Monday 29th January 2024 no later than 4pm

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This assignment counts for 100% of the marks for this module.

The Assessment criteria will be based upon the relevant learning outcomes outlined
for this module.

All assignments are designed to assist learners to develop their professional

competence. A questioning, analytical approach with emphasis on good research is
encouraged throughout. Special care must be taken with your communication skills,
and the logical structure of your work, therefore you should take time to plan before
you begin writing.

Please refer to the Lincoln Law School marking rubric on Blackboard to help you
understand how your work will be marked, and what is expected.

For advice and support with approaching your assessments, please consider the
online resources available, or for support with academic writing you can access the
Library’s Writing Development sessions, including booking one-to-one meetings for
writing and referencing support.

REQUIREMENTS FOR SUBMITTING YOUR WORK

• Formatting: your answer should use double spacing, and a font of a similar size
to Times New Roman, Arial or Calibri 12 point.
• Word Limit: your submission should consist of NO MORE THAN 4000 words:
 o Do NOT count footnotes or bibliography in your calculation.
o You must state the exact number of words contained in your submission at
the beginning of your document.
• Anonymity: the file name of your submission must be your examination ID (e.g.
9876542), which can be found on your student ID card. Do not include your name
or student number anywhere in the file name or the body of the document.
• Referencing: all sources used must be acknowledged and referenced. Footnotes
should be used for references but should not contain substantial material or
discussion. You must use the OSCOLA referencing system. The Library has
produced a very helpful OSCOLA guide for you to follow.
• Bibliography: A bibliography must follow the main body of your work. The
bibliography should also comply with the OSCOLA system. Access the OSCOLA
guide link above to also find an example bibliography for your reference.
• Submitting: you must submit an electronic copy of your answer through the
Turnitin submission portal in the “assignment” folder of the module site on
Blackboard. No hard copies are required. Follow the online submitting
assessments guidance page if you need assistance, but note the requirements
under ‘Anonymity’ above.

PENALTIES – IMPORTANT: READ CAREFULLY

• Late Submissions: please note 10 marks will be deducted for each day (or part
of a day) that the work is late. A submission will be deemed late if it is received
through Turnitin after the submission deadline on the cover page above.
• Exceeding Word Limit: a penalty of 10 marks will be invoked for exceeding the
word limit stated above by more than 10%. However, please also note:
o Submissions under the word limit are likely to be incomplete and will not
have addressed the issues in sufficient depth; and
o Submissions over the word limit are likely to lack precision and will show an
inability to communicate concepts and arguments concisely.

EXTENSIONS AND MITIGATING CIRCUMSTANCES

Full details of the University’s extension and mitigating circumstances can be found
on the University website, or through the Law School site on Blackboard, together with
links to the relevant forms. However, please note the following:
• Extensions: must be submitted in OneUni at least one working day before the
assessment deadline and must be supported by evidence. Extensions cannot be
granted for live assessments or exams / TCAs; and
• Mitigating Circumstances: must be submitted through the Portal no later than
10 working days after the assessment deadline has passed and must be
supported by evidence. This process applies to all assessments.

ACADEMIC OFFENCES
The use of dishonest means in assessments is considered an Academic Offence and
is treated seriously by the University. Academic Offences can be committed in a range
of ways, and these are listed and explained on the Academic Offences webpage. It’s
important that you familiarise yourself with the different offences to ensure you do not
commit one in your work. This is particularly important for law students, as the legal
regulators may bar you from entry to the legal profession if you have been found to
commit one of these offences.
You are reminded that copying work from any source without full referencing,
or using generative AI, paraphrasing tools, or any other software, program, or
tool to pass off the work of another as your own constitutes an Academic
Offence. The University has a range of tools to assist us in the detection of
Academic Offences.

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YOUR ASSESSMENT INSTRUCTIONS FOLLOW ON THE NEXT
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PLEASE ANSWER ONE OF THE FOLLOWING QUESTIONS BELOW:

QUESTION ONE

‘The law of England and Wales does not provide suitably practicable methods for
creditors to gain security in exchange for credit extended to companies.’

Critically discuss this statement.

QUESTION TWO

‘Despite its fundamental importance to the provision of security in the law of England
and Wales, recent developments in the law have diminished the value and utility of
the floating charge.’

Critically discuss this statement.

QUESTION THREE

“Substantial differences exist between US law and UK law [on corporate insolvency]
with US law traditionally seen as 'pro-debtor' and UK law as 'pro-creditor'” Gerry
McCormack, ‘Apples and Oranges? Corporate Rescue and Functional Convergence
in the US and UK’ (2009) 18 Int. Insolv. Rev. 109, 110.

Critically discuss this statement and whether the portrayal of the two legal
systems is accurate.

QUESTION FOUR

“…the requirement of the Rule in [Liquidator of West Mercia Safetywear Ltd v. Dodd
(1988) 4 B.C.C. 30] in practical terms is in my judgment a requirement on directors to
consider creditors' interests at all material times and not to harm their interests. It
would therefore not be open to the directors to take any step which would materially
and adversely prejudice the interests of creditors, or to omit to take a step which
could reasonably be taken by them, and which would prevent or reduce such
prejudice.” Per. Lady Arden JSC in BTI 2014 LLC v. Sequana SA and others [2022]
UKSC 25 at [288].

In light of this statement, critically discuss whether the Rule in West Mercia
and the other rules of company law and insolvency law applicable to directors
of companies facing insolvency offer adequate incentives to ensure that the
interests of the creditors of the company are protected.