Floating charge (Banking & Finance) meaning

Practice Note: Priority between security interests This Practice Note provides illustrations of how the rules on priority may operate in practice with reference to the relevant English law principles. It complements, and should be read alongside, our other Practice Notes on priority. New examples are added to this Practice Note on a regular basis. If you encounter a priority issue in practice that you would like us to cover, please use the LexisAsk function to inform us. Practice Note: Priority between security interests outlines the rules on priority from a more technical standpoint and should be consulted for the black letter law that supports the practical examples in this Practice Note. It is important to recognise that English law priority rules are complex and are widely acknowledged not to be clear in every respect. Outcomes can also be influenced by the parties’ actions, meaning law firms will often decline to provide an opinion on the priority of security and specialist advice may need to be obtained if there is...

This Practice Note sets out a concise overview of the financing structures typically used by UK asset-based lenders and highlights the key English law legal issues encountered when funding receivables (often called book debts) in the asset-based lending market, together with one or more of the following assets: inventory (also referred to as stock) plant and machinery (also referred to as equipment) real estate cashflow loan It also summarises common asset-based lending structures and the principal issues to consider when arranging asset-based financing. Key features of asset-based lending ABL is senior, secured lending primarily intended to fund a trading business’s working capital. Advances are determined by the realisable value of defined classes of a borrower’s assets, collectively known as the borrowing base. ABL is often event-led, offering flexible access to liquidity during periods of transition, such as an acquisition or a restructuring. An asset-based lender invariably provides receivables financing (see: Receivables financing below) as the anchor facility, supplemented by...

This Deed is dated [ insert date ] 20[ insert year ] Parties [ Insert name of Chargor ], a company registered in England and Wales (number [ insert company number ]) whose registered office is at [ insert address ] (the Chargor); and [ insert name of Lender ] of [ insert address ] (the Lender). Recitals The Lender makes facilities available to the Chargor under various finance arrangements. The availability of those facilities is conditional upon the Chargor entering into this Deed in favour of the Lender...

This Deed is dated [ insert day and month ] 20[ insert year ] Parties THE COMPANIES named in Schedule 1 (each, a Chargor, and collectively, the Chargors); and [ insert name of Security Agent ], acting as security agent and trustee for the Finance Parties pursuant to the terms and conditions contained in the [ Facilities Agreement OR Intercreditor Agreement OR Security Trust Deed ] (the Security Agent). Recitals The Finance Parties have consented to provide loan facilities in accordance with the terms and conditions described in the Facilities Agreement (as defined below). A condition precedent to the availability of those loan facilities is that each Chargor executes this Deed to grant security in favour of the Security Agent for the Secured Obligations (as defined below)...

This Deed is dated [ insert date ] 20[ insert year ]... Parties [ Insert name of Chargor ], a company incorporated in England and Wales with registered number [ insert company number ], whose registered office is at [ insert address ] (the Chargor); and [ insert name of Lender ] of [ insert address ] (the Lender ). Recitals The Lender has agreed to make a loan facility available to the Chargor on the terms and conditions set out in the Facility Agreement (as defined below). As a condition precedent to the availability of that loan facility, the Chargor must enter into this Deed to provide security in favour of the Lender in respect of the Secured Obligations (as defined below)...