floating charge

noun

1. 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

Example Sentences

In return, Dairy Crest will pay the pension fund a floating charge on the cash sum.

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The most characteristic feature of the security—the floating charge—grew naturally out of a charge on a company’s undertaking as a going concern.

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A floating charge created by a company within three months of its being wound up will now be invalid under � 12 of the Companies Act 1908 unless the company is shown to have been solvent at the time, but there is a saving clause for cash paid under the security and interest at 5%.

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The matter was fully considered by the departmental board of trade committee which reported in July 1906, 904 but the committee, looking at the business convenience of the floating charge, saw no reason for recommending an alteration in the law.

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In the debenture the security is a floating charge.

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