.(a) A part from the appointment of a receiver,four other events will cause a floating charge to crystallize.
Describe these four events.(8 marks)
(b) What happens to a floating charge when it crystallizes.(4 marks)
A person who lends on the security of a specific mortgage of a company’s property is always entitled to repayment on his loan out of the proceeds of the sale of the mortgaged property.This is done before any other creditor receives any payment.A person who takes a floating charge is not in such a secure position.
Why is the holder of a floating charge in a less favorable position?(8 marks)
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