Floating charge

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A word about credit risk mitigation
Everybody floats.jpg
Well - we all do, now and then, when spring is upon us.
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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.

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