3 Security for loans

Where a loan given by the bank is to be secured, two different forms of security are available. These are the fixed charge and the floating charge. A fixed charge is a charge over the fixed assets of the company—usually the land and buildings. A floating charge is a charge over the floating assets of the company, that is to say those assets or classes of assets which change from time to time. The most common examples of floating assets which can be charged are the stock-in-trade (for a trading company) and the book debts (being

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