Security & Collateral · glossary
The moment a floating charge fixes onto the assets in the pool. Under clause 4 it happens by notice, or automatically on three events: other security, a sale outside ordinary trade, or a winding-up petition or administration application. Fixing stops the Company dealing, but the Bank still cannot sell. Debenture §4 · Chapter 1 · Chapter 3
Explained in Chapter 1, What Security Is For, of Security & Collateral.
The Company may sell those in its ordinary trade without asking. New stock joins the pool and sold stock leaves it. The floating charge attaches to particular assets only when it fixes, which lawyers call crystallisation.Read Chapter 3, Fixed and Floating →
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