Definition of fixed charge in English:
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.
Definition of fixed charge in:
- US English dictionary
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.
Most popular in the US
Most popular in Canada
Most popular in Australia
Most popular in Malaysia
Most popular in India