A liability to a creditor which relates to the company’s assets as a whole and may become fixed in particular circumstances (such as liquidation). Compare with fixed charge.
- On 12 th August 1988 Wallace entered into cross-guarantees with the other companies in the Prospective Group in favour of Midland and granted to Midland a debenture containing fixed and floating charges to secure its liability.
- The creditor took a general floating charge over the company's assets and a fixed charge over its uncollected book debts.
- The receivers proceeded to realize the assets charged by the fixed and floating charges created by the debentures.
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