A debenture entered into by a company as chargor contains the following clause: "The Chargor with full title guarantee charges to the Chargee by way of first fixed charge all its rights and title in respect of any Book Debts" You can assume the debenture contains a market standard definition of 'Book Debts'.

Which ONE of the following statements is CORRECT?

A Whether this clause creates a fixed charge over the Book Debts or not will depend solely on the Chargor's ability to dispose of the Book Debts.

B This clause creates a floating charge over the Book Debts because it is not possible to form a fixed charge over the Book Debts

. C This clause creates a fixed charge over the Book Debts.

D Whether this clause creates a fixed charge over the Book Debts or not will depend on the control the Chargee exercises over the Book Debts and the proceeds of those Book Debts.