Charge

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.

In practice, a charge is how a creditor converts an ordinary loan into a secured one with a right to be paid out of specific assets before unsecured claimants. Whether the charge is on immovable property or on a company's other assets, its enforceability and priority depend almost entirely on registration: for companies, the charge must be filed with the Registrar of Companies within the statutory window, and an unregistered charge can be void against a liquidator and other creditors — turning a secured lender into an unsecured one. When a borrower defaults, the registered charge is what lets the creditor have the charged assets sold to satisfy the debt, and the date of registration usually decides who ranks first where multiple lenders claim the same asset. The common, costly errors are late or omitted registration, vague description of the charged assets, and failure to track inter-se priority. Well-advised lenders verify registration and ranking before disbursal and before any enforcement step.