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2 unusual facts about Floating charge


Floating charge

The earliest descriptions were given by Lord Macnaghten in two cases.

As it had become clear that creditors and debtors were going to find ways to create enforceable de facto security interests in after-acquired property and general intangibles whether courts liked it or not, the UCC drafters in the 1940s (particularly Grant Gilmore) successfully argued that such interests should be legitimized and simplified in the form of the floating lien.


Buchler v Talbot

In 1992, Leyland DAF Ltd, an English member of the Dutch group DAF Trucks, granted to Stichting Ofasec a mortgage debenture to secure a loan, containing a floating charge.


see also