Definition
A charge over a company's fluctuating assets (stocks, receivables, cash) that "floats" over the assets until it "crystallises" upon default, at which point it attaches to the specific assets then in existence. Banks often take a floating charge alongside a fixed charge (mortgage) to capture all assets of a company.
Related Terms
Fixed ChargeCrystallisation
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Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates