A charge is a security device that grants to the chargeholder an equitable, non-possessory security interest, allowing the charger to retain legal title and possession of the secured asset. A charge can be either “fixed” over present or future assets such as machinery, or “floating” over circulating assets such as inventory or receivables. In the latter context, a floating charge not only allows the chargeholder to have a security interest in after-acquired property, but also generally permits the charger to deal freely with such property in the ordinary course of business, notwithstanding an attached security interest.

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