Definition
A security interest created on immovable property or other assets as collateral for a loan. A registered charge on assets gives the creditor a right to have the assets sold to satisfy the outstanding debt in the event of default. Charges must be registered with the Registrar of Companies (for companies) or under registration laws.
Related Terms
Mortgage
A transfer of interest in immovable property as security for the repayment of money. The Transfer of…
Hypothecation
A charge created on movable assets (machinery, vehicles, stock, receivables) as security for a loan,…
Pledge
The delivery of movable goods (shares, FDRs, gold, commodities) by a borrower (pledgor) to a lender …
Lien
The right of a creditor to retain possession of a debtor's property until a debt is paid. A banker's…
Need Expert Advice on Charge?
For specific advice on how Charge applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates