Commentary

20 Distinguishing between fixed and floating charges

COMPANIES vol 10(2) borrowing and debentures
| Commentary

20 Distinguishing between fixed and floating charges

| Commentary

20 Distinguishing between fixed and floating charges

Given that different principles apply to fixed and floating charges1, it is obviously important to be able to tell them apart. The definition of a floating charge given in Re Yorkshire Woolcombers’ Association Ltd2 may appear to make this task relatively straightforward, but occasional difficulties do arise. In one case3, the court held that where a company which was in the business of leasing medical equipment under operating leases and under hire-purchase contracts charged the operating leases and the sums receivable under the hire-purchase contracts in favour of the banks which financed it,

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial