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Fixed charge: Difference between revisions
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A fixed charge is a type of [[charge]]. That is fixed. It doesn’t, so to say, ''[[floating charge|float]]''. | A fixed charge is a type of [[charge]]. That is fixed. It doesn’t, so to say, ''[[floating charge|float]]''. | ||
A [[fixed charge]] encumbers asset it secures from day one. To benefit from a fixed charge you need to have control over the assets - if the debtor can deal with the secured assets as it pleases without your knowledge and control, your [[fixed charge]] may fail. On a good day it might get [[recharacterised]] as a floating charge — but don't bank on it and note that there are certain formal requirements to perfect a floating charge which you are likely not to have done, seeing as you were thinking what you had was a fixed charge. | A [[fixed charge]] encumbers asset it secures from day one. To benefit from a fixed charge you need to have control over the assets - if the debtor can deal with the secured assets as it pleases without your knowledge and control, your [[fixed charge]] may fail - see {{casenote|Re Spectrum Plus}}. On a good day it might get [[recharacterised]] as a {{tag|floating charge}} — but don't bank<<ref>>{{hawf}}</ref> on it and note that there are certain formal requirements to [[perfect]] a [[floating charge]] which you are likely not to have done, seeing as you were thinking what you had was a {{tag|fixed charge}} which didn’ require them. | ||
===Why take a fixed charge?=== | ===Why take a fixed charge?=== | ||