floating security

floating security
A form of security by equitable charge wherein the property standing as security is left with the debtor to be handled and even sold in the due course of a business, with provisions for replenishing the security whenever it becomes depleted. Pennsylvania Co., etc. v United Railways, etc. (DC Me) 26 F Supp 379. It is what might be called an equitable lien, a continuing charge on the assets of the company creating it, but permitting the company to deal freely with the property in the usual course of business until the security holder shall intervene to enforce his claim, whereupon the lien or charge becomes fixed or crystallized and the company which gave it has no further authority to deal with the property. Nor can the general creditors take the property charged with the lien after the secured creditor has intervened to enforce the lien. Pennsylvania Co., etc. v United Railways, etc. (DC Me) 26 F Supp 379.

Ballentine's law dictionary. . 1998.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Floating charge — A floating charge is a security interest over a fund of changing assets of a company or a limited liability partnership (LLP), which floats or hovers until conversion into a fixed charge, at which point the charge attaches to specific assets. The …   Wikipedia

  • floating charge — The term used in England for floating security. See floating security …   Ballentine's law dictionary

  • floating charge — A mortgage, debenture or other security documentation, is likely to create charges over particular assets as security for borrowings or other indebtedness. There are essentially two types of charge, floating and fixed. A floating charge is… …   Law dictionary

  • floating lien — see lien Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. floating lien …   Law dictionary

  • floating charge — A type of security interest that charges the debtor s property but does not specify particular assets or pieces of equipment until the security interest or instrument is crystallized. (Dictionary of Canadian Bankruptcy Terms) United Glossary of… …   Glossary of Bankruptcy

  • Security interest — A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt.[1] It gives the beneficiary of the security interest certain… …   Wikipedia

  • Floating airport — A Floating airport is an airport that would be built and situated on a very large floating structure (VLFS) located many miles out at sea utilizing a floatation type of device or devices such as Pneumatic Stabilized Platform (PSP) technology.As… …   Wikipedia

  • Floating city (science fiction) — In science fiction, floating cities are settlements that strictly use buoyancy to remain in the atmosphere of a planet. However the term generally refers to any city that is flying, hovering, or otherwise suspended in the air via any means… …   Wikipedia

  • Security (finance) — This article is about the negotiable instrument. For the legal right given to a creditor by a borrower, see Security interest. Securities Securities Bond …   Wikipedia

  • Floating Charge — A security (i.e. mortgage, lien, etc.) that has an underlying asset or group of assets which is subject to change in quantity and value. Corporations can use floating charges and it does not affect their ability to use the underlying asset as… …   Investment dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”