Charge in United Kingdom

Definition of Charge

In accordance with the work A Dictionary of Law, this is a description of Charge :

1. A formal accusation of a crime, usually made by the police after *interrogation

See also indictment.

2. Instructions given by a Judge to a Jury.

3. A legal or equitable interest in land, securing the payment of money. It gives the creditor in whose favour the charge is created (the chargee) the right to payment from the income or proceeds of sale of the land charged, in priority to claims against the debtor by unsecured creditors. Under the Law of Property Act 1925 the only valid legal charges are:

(1) a *rentcharge payable immediately and for a fixed period or in perpetuity;

(2) a charge by way of legal *mortgage; and

(3) certain charges arising under statute (e.g. under the Charging Orders Act 1979). All others take effect as equitable interests. All mortgages and charges over registered land must be registered to be enforceable against purchases of the land; both legal mortgages and *equitable charges over unregistered land must be registered as land charges unless the mortgagee or chargee holds the title deeds as security (See registration of encumbrances).

4. An interest in company property created m favour of a creditor (e.g. as a *debenture holder) to secure the amount owing. Most charges must be registered at the Companies Registry. A fixed charge is attached to specific assets (e.g. premises, plant and machinery) and while in force prevents the company from dealing freely with those assets without the consent of the lender. A floating charge does not immediately attach to any specific assets but ‘floats’ over all the company’s assets until *crystallizatio Until this point the company is free to deal freely with such assets; this type of charge is suitable for circulating assets (e.g. cash, stock in trade), whose values must necessarily fluctuate. In the event of the company not paying the debt the creditor can secure the amount Owing in accordance with the terms of the charge. If the company goes into liquidation (See winding-up) the order for repayment of debts laid down under the Insolvency Act 1986 is that fixed-charge holders are paid before floating-charge holders. A charge can also be created upon shares. For example, the articles of association usually give the company a *lien in respect of unpaid *calls, and company members may, in order to secure a debt owed to a third party, charge their shares, either by a full *transfer of shares coupled with an agreement to retransfer upon repayment of the debt or by a deposit of the *share certificate.

Charge Meaning

Charge in Scottish Law

The crime that the accused person is thought to have committed.

Charge (to the jury) Meaning

Charge in Scottish Law

The judge’s legal direction to a jury on matters of law and evidence before it decides on the verdict.