floating charge

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Related to floating charges: fixed charges

floating charge

n
(Economics) chiefly Brit an unsecured charge on the assets of an enterprise that allows such assets to be used commercially until the enterprise ceases to operate or the creditor intervenes to demand collateral
References in periodicals archive ?
A summary of liabilities lists preferential creditors (PS82,231), debts secured by floating charges (PS322,227) and unsecured non-preferential claims (PS940,820).
Part II explains the distinction between fixed and floating charges under English law.
3m are secured by floating charges with a further pounds 1.
After the full repayment of Anjung's MYR110m Al-Bai Bithaman Ajil Bonds, the junior notes now rank ahead of its other un-subordinated debts in terms of fixed and floating charges over the present and future assets as well as undertakings of the company and also the assignment of all rights under the project agreements, including the right to revenue, RAM Ratings said.
The numbers of administrations will grow, as in time there will be no floating charges which allow lenders to appoint an administrative receiver.
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.
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.
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.
In theory, floating charges crystallize upon the commencement of an insolvency proceeding and so become fixed charges.