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Legal Terms – crystallization
. An event or a condition that is complied with, causing a floating *charge to stop “floating” over a company’s fluctuating assets (e.g. cash, stock-in-trade) and to fasten upon the existing assets (and value) at that time. This will happen once a *receiver appointed in accordance with the charge's conditions arranges for the debt's repayment from assets covered by the charge. Alternately, further occurrences or circumstances could be mentioned under the
conditions of the charge at the time of creation (for example, in the event that the business enters liquidation; refer to WINDING-UP) or upon notice from the charge holder to the business (Re Brightlife Ltd [1987] Ch 200). The corporation is free to do with the assets subject to the charge as it pleases until crystallization.
. An event or a condition that is complied with, causing a floating *charge to stop “floating” over a company’s fluctuating assets (e.g. cash, stock-in-trade) and to fasten upon the existing assets (and value) at that time. This will happen once a *receiver appointed in accordance with the charge's conditions arranges for the debt's repayment from assets covered by the charge. Alternately, further occurrences or circumstances could be mentioned under the
conditions of the charge at the time of creation (for example, in the event that the business enters liquidation; refer to WINDING-UP) or upon notice from the charge holder to the business (Re Brightlife Ltd [1987] Ch 200). The corporation is free to do with the assets subject to the charge as it pleases until crystallization.
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