Security & Collateral · glossary
Security that leaves the asset with its owner but lets the lender have it sold and be paid first from the price. A fixed charge sits on a named asset, and a floating charge on a changing pool. The Debenture uses both, with a legal mortgage and an assignment. Debenture §3 · Chapter 1 · Chapter 3
Explained in Chapter 1, What Security Is For, of Security & Collateral.
Clause 3 of the Debenture creates two kinds of charge. A fixed charge sits on a named asset, and the Company may not sell it without the Bank's consent. A floating charge sits over a pool of assets that changes every day, such as stock.Read Chapter 3, Fixed and Floating →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Security & Collateral and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Security & Collateral → · All terms A–Z →