Floating charge: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
Line 2: Line 2:
A "floating" charge — fondly known by legal witterati as a “[[floater]]”, is a [[security interest]], which hovers in the æther, allowing the assets to move in and out of the custody account unhindered, but upon an [[enforcement event]] suddenly clamps down — the technical term is that it “[[crystallise]]s” — on whatever is in the account and becomes a [[fixed charge|“fixed” charge]].
A "floating" charge — fondly known by legal witterati as a “[[floater]]”, is a [[security interest]], which hovers in the æther, allowing the assets to move in and out of the custody account unhindered, but upon an [[enforcement event]] suddenly clamps down — the technical term is that it “[[crystallise]]s” — on whatever is in the account and becomes a [[fixed charge|“fixed” charge]].


{{seealso}}
{{sa}}
*[[Fixed charge]]
*[[Fixed charge]]
*[[Security interest]]
*[[Security interest]]

Revision as of 11:36, 18 January 2020

The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
Index — Click the ᐅ to expand:
Tell me more
Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.
A word about credit risk mitigation
Well - we all do, now and then, when spring is upon us.
Tell me more
Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.


A "floating" charge — fondly known by legal witterati as a “floater”, is a security interest, which hovers in the æther, allowing the assets to move in and out of the custody account unhindered, but upon an enforcement event suddenly clamps down — the technical term is that it “crystallises” — on whatever is in the account and becomes a “fixed” charge.

See also