Commentary

68 Overview of fixed and floating charges

BANKING vol 4(1)
| Commentary

68 Overview of fixed and floating charges

| Commentary

F: FIXED AND FLOATING CHARGES OVER BOOK DEBTS

1: INTRODUCTION TO FIXED AND FLOATING CHARGES OVER BOOK DEBTS

68 Overview of fixed and floating charges1

A fixed charge attaches to an asset on the date of the document creating the charge or, if later, on the date when the asset was acquired by the chargor.

The holder of a fixed charge over an asset is entitled to appropriate that asset towards discharge of his debt in priority to all other debtors. He does this generally by selling the asset. The holder’s consent is necessary if the purchaser wishes to obtain an unimpeachable title,

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