One of the mysteries of the English language finally explained.
A liability to a creditor which relates to the company's assets as a whole and may become fixed in particular circumstances (such as liquidation).Compare with fixed charge
- ‘The creditor took a general floating charge over the company's assets and a fixed charge over its uncollected book debts.’
- ‘On 12 th August 1988 Wallace entered into cross-guarantees with the other companies in the Prospective Group in favour of Midland and granted to Midland a debenture containing fixed and floating charges to secure its liability.’
- ‘Thereafter the assets subject to the floating charge form a separate fund in which the debenture holder has a proprietary interest.’
- ‘The actual ratio in that case was that the payment of a debt due to an unsecured creditor prior to the crystallisation of the floating charge bound the debenture holder.’
- ‘The typical floating charge covers all assets in a company's possession from time to time, even if unspecified.’
- ‘Yes, but finance companies frequently take floating charges over the assets of a car dealer and those charges sometimes crystallise and the car dealer goes on trading.’
- ‘Under the pleaded debentures of 21 December 1992 and 2 April 1994 the book debts were subject to fixed and floating charges to secure the sum of £8m repayable on demand.’
- ‘In deciding whether a charge is a fixed charge or a floating charge, the court is engaged in a two-stage process.’
- ‘The security would be a floating charge over the company which would own the patents.’
- ‘The receivers proceeded to realize the assets charged by the fixed and floating charges created by the debentures.’
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