NUMBER ONE Success System

Tommy Lee noss1233 at
Thu Aug 23 11:09:09 UTC 2007

Equitable Charge

A fixed equitable charge confers a right on the secured party to look to a
particular asset in the event of the debtor's default, which is enforceable
by either power of sale or appointment of a receiver. It is probably the
most common form of security taken over assets.

An equitable charge is also a non-possessory form of security, and the
beneficiary of the charge (the *chargee*) does not need to retain possession
of the charged property.

Where security equivalent to a charge is given by a natural person (as
opposed to a corporate entity) it is usually expressed to be a bill of sale,
and is regulated under applicable bills of sale legislation. Difficulties
with the Bills of Sale Acts in Ireland, England and Wales have made it
virtually impossible for individuals to create floating charges.

Floating Charge
*Main article: Floating charge*

Floating charges are similar in effect to fixed equitable charges once they
crystallise (usually upon the commencement of liquidation proceedings
against the chargor), but prior to that they "float" and do not attach to
any of the chargor's assets, and the chargor remains free to deal with or
dispose of them.
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