Floating Security - Definition - Law Dictionary Home Dictionary Definition floating-security

Definition :

Floating security, in an equitable charge on the assets for the time being of a going concern. If attaches to the subject charged in the varying condition in which it happens to be from time to time. It is of the essence of such a charge that it remains dormant unit the undertaking charged ceases to be a going concern, or unit the undertaking charged cases to be a going concern, or until the person in whose favour the charge is created intervenes, Governments Stock and other Securities Investment Co. Ltd. v. Manila Railway Co. Ltd., (1897) AC 81.