Commentary

21 Crystallisation of floating charges

COMPANIES vol 10(2) borrowing and debentures
| Commentary

21 Crystallisation of floating charges

| Commentary

21 Crystallisation of floating charges1

The charge may specify that a floating charge is to become a fixed or specific charge on the occurrence of certain events. When such an event occurs, the charge ceases to float over the class of assets for the time being and instead attaches itself to the assets which are in the class at that moment (together with any assets which are subsequently added to the class)2. This process is referred to as crystallisation and the event which brings it about is said to be a crystallising event. If the crystallisation occurs without any further

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