A liability to a creditor which relates to specific assets of a company. Compare with floating charge.
- The conceptual distinction between a floating charge and a fixed charge is complicated by the fact that a fixed charge may cover future assets and attach as soon as the debtor acquires those assets.
- The judge gave two examples of fixed charges over assets which are defeasible at the will of the chargor.
- The reasons for this appear relatively simple, banks like to secure loans with a fixed charge over the assets of a company and most resellers don't have or need a significant asset base to operate.
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