Fixed and floating charges—key cases

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Fixed and floating charges—key cases
  • The distinctive nature of fixed and floating charges
  • Issues for the lender of a fixed versus a floating charge
  • Crystallisation of floating charges
  • Qualifying Floating charges

Fixed and floating charges—key cases

This Practice Note sets out certain key cases and associated relevant content in relation to fixed and floating charges. The cases are divided by topic area and include:

  1. The distinctive nature of fixed and floating charges

  2. Issues for the lender of a fixed versus a floating charge

  3. Crystallisation of floating charges

  4. Qualifying Floating charges

The distinctive nature of fixed and floating charges

Names of partiesJudgment dateCase summaryRelevant content
Re BCCI (No 8) [1997] 4 All ER 56830 October 1997This case confirms two key characteristics of a charge (fixed and floating) ie that it creates immediate proprietary interests in the assets of the chargor and does not involve the transfer of title to an asset (Lord Hoffmann at 576–578).See Practice Note: Fixed and floating charges

See Articles:
—Security over deposits after Re BCCI (No 8) (1996) 3 JIBFL 111

—Security over deposits after Re BCCI (No 8) in the House of Lords (1998) 4 JIBFL 125
Holroyd v Marshall [1861–73] All ER Rep 4144 August 1862This case is authority for the rule that a charge (fixed or floating) can be used to secure future assets (Lord Westbury LC at 418).See Practice Note: Fixed and floating charges


See: Debenture Debrief—Key Principles of Law which Arise in a Debenture (2014) 5 JIBFL 347
Independent Automatic Sales v Knowles & Foster
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