Floating charge

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 “crystallises” — on whatever is in the account and becomes a “fixed” charge.

See also

• Fixed charge
• Security interest
• Light brown floater