Floating charge: Difference between revisions

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[[File:Everybody floats.jpg|thumb|right|Well - we ''all'' do, now and then, when spring is upon us.]]
{{a|security|{{image|Everybody floats|jpg|Well - we ''all'' do, now and then, when spring is upon us.}}}}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 on whatever is in the account and becomes a [[fixed charge|“fixed” charge]].


{{seealso}}
{{sa}}
*[[Charge]]
*[[Assignment by way of security]]
*[[Fixed charge]]
*[[Fixed charge]]
*[[Security interest]]
*[[Security interest]]

Latest revision as of 08:30, 20 October 2022

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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