General floating charge Sample Clauses
A general floating charge is a security interest granted by a borrower over all or most of its assets, both present and future, without specifying individual items. This type of charge allows the borrower to continue using and dealing with its assets in the ordinary course of business until a default or specified event occurs, at which point the charge 'crystallizes' and attaches to the assets. The core practical function of a general floating charge is to provide the lender with a flexible form of security that covers a changing pool of assets, thereby protecting the lender’s interests while allowing the borrower operational freedom.
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General floating charge. As security for payment of the Secured Liabilities, the Owner charges in favour of the Lender, by way of first floating charge and (where applicable) with full title guarantee, all its undertaking and all its assets whatsoever and wheresoever, both present and future, except those assets mortgaged or charged by Clause 3.1 or by any other Finance Document to which the Owner is a party.