|
Company
Series
What is the difference between a fixed
and floating charge
Charges
are created for the purposes of providing security to a lender. A fixed
charge is one which attaches to a specific property (usually land). The
company can only deal with the property subject to the terms of the
charge and generally may not dispose of the property until the charge
has been discharged and the loan repaid.
|
A
flaoting charge does not attach on any specific property and may attach
to all the company’s assets. The company is free to deal with these
assets until the happening of certain events stipulated by the lender
(such as an appointment of a receiver), upon which the charge crystallises
and becomes fixed. |
