Crystallization in United Kingdom

Definition of Crystallization

In accordance with the work A Dictionary of Law, this is a description of 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 occur when a *receiver has been appointed under the terms of the charge to arrange payment of the debt from assets subject to the charge. Alternatively, other events or conditions may be stated under the terms of the charge when created (e.g. that the company goes into liquidation (See winding-up) or by notice to the company by the holder of the charge. Until crystallization the company is free to deal with assets subject to the charge as it wishes.