| 41. | It is the third characteristic which is the hallmark of a floating charge and serves to distinguish it from a fixed charge.
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| 42. | In most jurisdictions, a floating charge is only vulnerable to the extent that it does not secure new money for the company.
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| 43. | A purported pledge may be recharacterised as a floating charge in some circumstances, which in turn may be void for want of registration.
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| 44. | For such a catastrophe as has occurred in this case some would blame the law that allows the creation of a floating charge.
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| 45. | Difficulties with the Bills of Sale Acts in Ireland, England and Wales have made it virtually impossible for individuals to create floating charges.
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| 46. | To answer it their Lordships must examine the nature of a floating charge and ascertain the features which distinguish it from a fixed charge.
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| 47. | This conversion of the floating charge into a fixed charge ( called " crystallisation " ) can be triggered by a number of events.
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| 48. | After funds are taken away to pay all preferential groups and the holder of a floating charge, the remaining money due to unsecured creditors.
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| 49. | But the object at this stage of the process is not to discover whether the parties intended to create a fixed or a floating charge.
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| 50. | They are the " foregoing debts " which are given priority over the floating charge : see section 319 ( 5 ) ( b ).
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