floating charge


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Related to floating charge: fixed charge

floating charge

a security created by a company by debenture (in Scotland, a floating charge) over its whole assets and undertaking for the time being. The point of this form of security is that the company may continue to conduct its business, disposing of some assets and acquiring others without having to obtain the consent of the debenture holders for each disposal. In the event of a default, the charge crystallizes and becomes fixed and enforceable over the assets held at that time.
References in periodicals archive ?
Unless otherwise agreed between the pledgees, a pledgee under a pledge contract shall have priority over a pledgee under a floating charge or a Pledge over Economic Enterprise.
The floating charge is attached to the assets of a company, and is one method employed by banks to secure a loan (or a group of loans).
Addressing the floating charge, the English Cork Report concluded that it "is capable of working great injustice" (357) and "had given rise to a widespread and long-standing sense of grievance in the commercial community." (358) The report continued:
Except for the three operation state for realizing the FPC multi-functions mentioned hereinbefore, the FPC DFIM has two other states, the speed limitation and floating charge.
The loan is on a fixed and floating charge over the firm's assets and will be offered for 12 months from October 21, 2010.
The TFC is secured by way of first ranking floating charge over all the present and future movable properties (including investments) of Engro Corporation Limited but excluding present and future trademarks and copyrights of ECL and excluding its shares in Engro Energy Limited and Engro Polymer & Chemicals Limited.
"(Santander) holds a bond and floating charge over the business and assets of the company, with the total of the sums due by the company to the bank at the date of administration estimated to be pounds 2.5million.
The PWC report said: "The prescribed part, that part of any floating charge realisations that should be made available for unsecured creditors, is applicable in this instance.
The FMLC also points out that, where the structured finance exception applies under the Enterprise Act 2002, an administrative receiver and liquidator might both be in office and carrying out their functions concurrently so that floating charge holders would have to bear two sets of costs and expenses.
When the solar panel is installed to receive maximum sunlight, it keeps a 9V DC floating charge on the P44's alkaline battery during daylight hours.
The most important advantage of whole business securitizations is the fixed and floating charge of the security trustee that acts as a shield for investors.
The securities issued by Rolling Stock are secured by fixed and floating charges over the Rolling Stocks assets which primarily consist of a secured loan to Porterbrook which is secured by a fixed and floating charge over the leases and underlying rolling stock.