Section 111 - Charges to secure fluctuating amounts

(1) Where a charge, particulars of which require registration under section 110 is expressed to secure

(a) the sums of money due or to become due, or

(b) some other uncertain or fluctuating amount,

the particulars required under paragraph (c) of subsection (6) of section 110 shall state the maximum sum of money secured by the charge, being the maximum sum of money covered by the stamp duty paid on the charge and the charge shall be void, so far as a security on the property of the company is conferred by the registration, regarding an excess over the stated maximum.

(2) For the purposes of subsection (1), if

(a) additional stamp duty is subsequently paid on the charge, and

(b) at any time after the payment, but before the commencement of the winding up of the company, particulars of the charge stating the increased maximum sum of money secured by the charge, together with the original instrument by which the charge was created or evidenced, are delivered to the Registrar for registration,

as from the date of the delivery, the charge, if otherwise valid, shall be effective to the extent of the increased maximum sum of money except as regards a person who, before the date of the delivery, has acquired any proprietary rights in, or a fixed or floating charge on, the property subject to the charge.