| Commentary

38 Priority of floating charges

| Commentary

38 Priority of floating charges

The essence of a floating charge is that enables a company to deal with its assets for the purpose of its business despite the existence of the charge1. In the absence of a provision to the contrary, this power of disposition extends to the creation of fixed charges2 although not to the creation of general floating charges ranking in priority to or pari passu with the original floating charge3. It is, however, usual to provide that no mortgage or charge ranking pari passu with or in priority to the debenture shall be created by the

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