Question
Floating charges: used by creditors when dealing with corporations that must be free to buy and sell the assets used as security for the loan
Floating charges: used by creditors when dealing with corporations that must be free to buy and sell the assets used as security for the loan a floating charge does not interfere with ongoing business but provides a priority over unsecured creditors Customers can buy goods in ordinary course of business and take free and clear Floating charge crystallizes into fixed charge on debtor default of payment
Please Provide a real-life example of floating charge, and indicate the idea of 1. a floating charge does not interfere with ongoing business but provides a priority over unsecured creditors 2. Customers can buy goods in ordinary course of business and take free and clear 3. Floating charge crystallizes into fixed charge on debtor default of payment (DO NOT EXPLAIN THE CONCEPT AGAIN)
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