Fixed Charge

A fixed charge (also called a specific charge) is a form of security attached to a specific, identifiable asset or class of assets, such as land, machinery, or intellectual property. Unlike a floating charge, the chargor cannot deal with the asset without the chargee's consent. Fixed charges have priority over floating charges and preferential creditors in the distribution of the charged asset.

In practice

Whether a charge is fixed or floating depends on the degree of control the chargee exercises over the asset, not the label used in the charge document (as confirmed in Re Spectrum Plus Ltd [2005]). Fixed charges must be registered at Companies House within 21 days of creation. A fixed charge holder can enforce their security by appointing a receiver or selling the asset, even during administration (with the court's permission).