floating charge

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Related to floating charges: fixed charges

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 ?
English fixed and floating charges are created, perfected, prioritized, and enforced in essentially the same manner as American security interests.
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.
In a whole business securitization, simultaneously with the SPV making the loan, the corporate borrower grants the SPV fixed and floating charges on all its corporate assets.
Tandis que la France et la Grande-Bretagne adaptent tant bien que mal leurs institutions traditionnelles (gage, mortgage, pledge, fixed et floating charges) aux necessites du commerce moderne, les provinces canadiennes ont refondu les leurs en une institution synthetique et simplifiee (security interest en vertu des Personal Property Security Acts, hypotheque au Quebec) sur le modele de l'article 9 du Uniform Commercial Code americain.
After them comes the bank, with so-called floating charges such as overdrafts.
The unique right of a company to create floating charges is also discussed.
The notes benefit from a strong security package with first ranking fixed and qualifying floating charges over the issuer's rights, all the assets and undertakings of the issuer.
The bill governing administration deals with issues such as when floating charges on loans are transformed into fixed charges.
In theory, floating charges crystallize upon the commencement of an insolvency proceeding and so become fixed charges.
The numbers of administrations will grow, as in time there will be no floating charges which allow lenders to appoint an administrative receiver.
insolvency law, which allows holders of floating charges on substantially the entire property of a borrower to appoint an administrative receiver, who effectively will be able to restrain the jurisdiction of the bankruptcy court over such assets.
They will rank pari passu with the existing GBP210 million floating rate notes due in 2022, and with the GBP176 million revolving credit facility extended to 2022 borrowed by Premier Foods Investments Limited and will share the same security package, which consists of fixed charges over certain real estate and intellectual property rights, floating charges over all the assets of each guarantor, and a share pledge over capital stock of the issuer and each guarantor.