Fixed charge: Difference between revisions

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 {{casenote1|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<ref>Unless it qualified under the {{tag|Financial Collateral Directive}} ({{eudirective|2002|47|EC}}</ref>.

Just because you say you have a fixed charge doesn't mean you do. Practical, factual considerations will apply. There are two important recent cases: