| Commentary

289 Floating charges

| Commentary

289 Floating charges

Unlike fixed securities, floating charges created by the company over its whole assets and undertaking, or over a class or classes of its assets, such as book debts, do not initially attach to any particular assets of the company. If any event occurs which causes a floating charge to crystallise, it will then become a specific charge over all the assets at that moment comprised in the company’s undertaking1.

The following events will generally cause a floating charge to crystallise:

  1. 289.1

        the company going into liquidation;

  2. 289.2

        a receiver being appointed by the court or under the terms

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