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United Kingdom Leading Case guarantees and indemnitiesreceivership

National Westminster Bank plc v Spectrum Plus Ltd

[2005] UKHL 41
JurisdictionUnited Kingdom
CourtUK House of Lords
Year2005
StatusBinding authority

Summary

A charge over book debts permitting the chargor to collect and use proceeds freely is a floating charge, not a fixed charge, irrespective of the label the parties apply.

Key Principle

A charge over book debts that allows the chargor to collect the debts and use the proceeds in the ordinary course of business is a floating charge, not a fixed charge, regardless of how the parties label it.

Area of Law

banking

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