Keywords: floating charge; property; real; land; crystallization; debt; debtor; creditor; insolvent; mortgage; security; interest; registration; title; circular; priority
A floating charge on land is a particular kind of mortgage, which, unlike traditional or “fixed” mortgages, does not bind specific property so long as the borrower remains financially healthy. Instead, the floating charge only becomes fixed on particular assets when a specified event occurs (usually this event is associated with the borrower's financial stability). Floating charges are rather unusual, but they are still used in some commercial financing arrangements. When this project was carried out, the advent of the Personal Property Security Act appeared to jeopardize their continued use. This project considers a new scheme for registering floating charges over land, in light of the changes wrought by the Personal Property Security Act.