Floating charge

A charge ( www.practicallaw.com/A34644) taken over all the assets or a class of assets owned by a company or a limited liability partnership ( www.practicallaw.com/2-107-6762) from time to time as security for borrowings or other indebtedness. The advantage of a floating charge is that before insolvency it allows the charged assets to be bought and sold during the course of a company's or limited liability partnership's business without reference to the chargeholder. The floating charge crystallises if there is a default or similar event. At that stage, the floating charge is converted to a fixed charge ( www.practicallaw.com/A36112) over the assets which it covers at that time. If default occurs, depending on when the floating charge was created, the chargeholder may be able to appoint an administrative receiver ( www.practicallaw.com/A35781) or an administrator ( www.practicallaw.com/2-107-6366) .

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247245056047", "objName" : "Floating charge", "userID" : "2", "objUrl" : "http://us.practicallaw.com/cs/Satellite/us/resource/0-107-5773?source=relatedcontent", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "true", "analyticsPermCookie" : "23e15b951:14e4d8488d6:6a94", "analyticsSessionCookie" : "23e15b951:14e4d8488d6:6a95", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }