Fixed charge

A fixed charge commonly restricts the borrower’s ability to deal freely with the charged asset without consent. Whether the arrangement is legally fixed depends on substance, including control, rather than the label alone. Enforcement, registration, priority and insolvency effects depend on the jurisdiction and facts. Do not assume a creditor can seize any asset automatically or that every secured claim is fully recoverable. The concept differs from a fixed interest rate, fixed operating cost and floating charge over a changing asset class.