Definition of fixed charge in English:

fixed charge

noun

  • A liability to a creditor which relates to specific assets of a company.

    Compare with floating charge
    • ‘The reasons for this appear relatively simple, banks like to secure loans with a fixed charge over the assets of a company and most resellers don't have or need a significant asset base to operate.’
    • ‘The 2000 Sydney Olympic Games and a slowdown in global economic growth also contributed to the decline in earnings before fixed charges and management fees, the report said.’
    • ‘Of course he was paid and it is a little unfair in a general sense, but it is not unfair when one realises that the bank at all times could direct things and in fact had a fixed charge over all the assets.’
    • ‘In deciding whether a charge is a fixed charge or a floating charge, the Court is engaged in a two-stage process.’
    • ‘The judge gave two examples of fixed charges over assets which are defeasible at the will of the chargor.’
    • ‘The conceptual distinction between a floating charge and a fixed charge is complicated by the fact that a fixed charge may cover future assets and attach as soon as the debtor acquires those assets.’