Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Chargee definition

What does Chargee mean? A chargee is the person (usually a lender, security agent or security trustee) who holds the benefit of a charge over a chargor’s assets and can enforce that security on default. Often called the secured creditor or secured party, the chargee is the beneficiary of fixed or floating charges granted in finance, corporate and real estate transactions. “Chargee” is a descriptive expression rather than a defined statutory term. Legislation in England and Wales, Northern Ireland and Ireland typically refers to the holder of a charge, but practitioners widely use “chargee” in documents. Key rights, subject to the security documents and...

Floating charges for lenders: trading flexibility, QFCH appointment rights, invalidity risks and insolvency priority deductions versus fixed charges (England and Wales)

Published by a LexisNexis Banking & Finance expert

Practice notes

Advantages and disadvantages of taking a floating as opposed to a fixed charge

This Practice Note examines the advantages and disadvantages of taking a floating, rather than a fixed, charge, mainly from the chargee’s perspective, and why understanding the trade-offs is important. In secured lending, it is common for lenders to place fixed charges over non-variable assets of a company and a floating charge across the balance. This blended approach enables a lender to maximise the key benefits offered by each form of security while achieving coverage across the asset base.

Fixed charges, where they can be obtained, usually produce better recoveries on enforcement.
By contrast, holding a qualifying floating charge allows a lender to appoint an administrator out of court and to take security over a broader range of assets.

Even so, the exact configuration of security over a company’s assets is often negotiated with the borrower. A borrower may, in particular, resist the level of control over its assets that must exist for a fixed charge to be created. Consequently, lenders need to be mindful of the drawbacks that arise if assets are left subject to a floating, rather than a fixed, charge...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...