Fixed Charge

Definition

A security interest over a specific, identified asset that prevents the borrower from dealing with or disposing of the charged asset without the lender's consent. Fixed charges attach to assets such as land, buildings, specific plant and equipment, or identified intellectual property rights. In insolvency, fixed charge holders are repaid from the proceeds of the charged asset before floating charge holders and unsecured creditors, making fixed charges the strongest form of security available to UK lenders.