<Table> <Tr> <Td> </Td> <Td> This article may be too technical for most readers to understand . Please help improve it to make it understandable to non-experts, without removing the technical details . The talk page may contain suggestions . (August 2015) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> This article may be too technical for most readers to understand . Please help improve it to make it understandable to non-experts, without removing the technical details . The talk page may contain suggestions . (August 2015) (Learn how and when to remove this template message) </Td> </Tr> <P> A floating charge is a security interest over a fund of changing assets (e.g. stocks) of a company or other artificial person, which' floats' or' hovers' until the point at which it is converted into a fixed charge, at which point the charge attaches to specific assets of the business . This conversion of the floating charge into a fixed charge (called "crystallisation") can be triggered common law jurisdictions)) it is an implied term in security documents creating floating charges that a cessation of the company's right to deal with the assets (including by reason of insolvency proceedings) in the ordinary course of business leads to automatic crystallisation . Additionally, security documents will usually include express terms that a default by the person granting the security will trigger crystallisation . </P> <P> In most countries floating charges can only be granted by companies, LLPs or similar entities with separate legal personality . If an individual person or a partnership was to try to grant a floating charge, then in most jurisdictions which recognise floating charges this would be void as a general assignment in bankruptcy . </P>

Is a floating charge holder a secured creditor