Dear Charlie,

Thank you for the previous answer re: debt recovery. A charitable company has a mortgage taken out by one of the directors / trustee for £38k with:- 'Fixed & floating charge over the undertaking and all the land & whatever rights that exist over the land now and in the future and all property and all assets present and future including goodwill, book debts.'

Some other highlights:- The charitable company went into administration and was run under licence by a Co. Limited by shares, & all income & expenditure incurred by this CLS was transferred back to the charity and incorporated into the accounts; this agreement ceased when creditors agreed a percentage of their debts in a single payment. Accounts have been passed 'true & fair'.

Can you shed any light on the above - is the mortgage charge normal? Is the arangement with the CLS while in adminisdtration usual? Any help appreciated.