Floating charge

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In English property law, the floating charge is a means of securing a claim. The floating charge is one of the most widespread means of security in business life, but only one company can act as security provider: private individuals or a partnership are not allowed to use it (exception: Limited Liability Partnership). It is an institute that emerged from legal practice and was first recognized by jurisprudence in 1871; until today there are almost no legal regulations.

The object of security of the floating charge is not a single right or an individual item: Rather, the floating charge can encumber the entire current and future company assets (or part of them). The collateral provider can, however, still dispose of all objects and rights in the ordinary course of business ; an acquirer thus receives no encumbered right or property. The real effect of the floating charge only occurs with crystallization, i.e. H. the condition determined by the security purpose, and the floating charge is transformed into a fixed charge. A receiver is then appointed to enforce the fixed charge . He can also be named as receiver and manager and is then entitled to continue business operations.

literature

  • Carsten Hofmann: Mortgage and Charge: Design options in English loan security law . Duncker & Humblot, Berlin 2002, ISBN 978-3-428-10800-8 .
  • Ulrike Seif : The grandfathering of non-possession security in German and English law . Mohr Siebeck, Tübingen 1997, ISBN 978-3-16-146655-7 .