- fixed charge
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fixed charge n: a regularly recurring expense (as rent, taxes, or interest) that must be met when due
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- fixed charge
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A mortgage, debenture or other security documentation, is likely to create charges over particular assets as security for borrowings or other indebtedness. There are essentially two types of charge, floating and fixed. A fixed charge is appropriate to permanent assets which are to be retained by the company and are unlikely to be regularly traded, such as property, fixed plant, intellectual property rights, etc. Assets continue to be subject to a fixed charge until released even when sold or otherwise disposed of - the security interest remains on the title of the asset.
Easyform Glossary of Law Terms. — UK law terms.
- fixed charge
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This term has a number of meanings:In the context of security, a charge over a particular asset. A fixed charge ranks before a floating charge in the order of repayment on an insolvency.In relation to a tenancy, under the Landlord and Tenant (Covenants) Act 1995, rent, any service charge as defined by section 18 of the Landlord and Tenant Act 1985, any amount payable under a tenant covenant of the tenancy providing for the payment of a liquidated sum in the event of failure to comply with such a covenant.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
