This question relates to specific aspects of the law relating to loans extended to companies. It requires an explanation of the different types of security and an understanding of the procedure for registering charges securing loans and the priority of any such charges.

8–10 marks 
Thorough to complete answers, showing a detailed understanding of the law relating to debentures and charges securing them. The various loans will be placed in the correct order with an explanation of why that order applies.

5–7 marks 
A clear understanding of the topic, but perhaps lacking in detail. Alternatively, an unbalanced answer showing good understanding of one part but less in the others. Perhaps not applying the law accurately in the examples provided.

2–4 marks 
Some knowledge, although perhaps not clearly expressed, or very limited in its knowledge and understanding of the topic. Or perhaps the knowledge is not accurately applied.

0–1 mark 
Little or no knowledge of the underlying topic.