Security & Collateral · glossary
Security over a named asset, which the Company may not sell or deal with without the Bank's consent (clause 6.2). When it is sold, the Bank is paid after the costs of sale, and nobody stands in between. The label alone does not make a charge fixed: control does. Debenture §3.2 · Definition: Fixed Charge Assets · Schedule 2 · 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 →
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the Security Assets for the time being subject to the legal mortgage in clause 3.1, a fixed charge in clause 3.2 or the assignment in clause 3.3, and every asset over which the floating charge has become a fixed charge under clause 4;Read the definition in the document →
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