Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Law questions