Charge

The right to appropriate an asset to discharge a debt such that a creditor may look to that asset and its proceeds to discharge the indebtedness in priority to unsecured creditors and subsequent encumbrancers. Like a Mortgage, a charge is a non-possessory Security. Unlike a Mortgage, a charge does not transfer ownership of the asset to the creditor. A charge may be a Fixed Charge or a Floating Charge.

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