The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.


A general CLAIM against a group of ASSETS rather than a specific asset, i.e., a pool of current and future ACCOUNTS RECEIVABLE or INVENTORIES rather than designated receivables or inventories. A BANK granting a LOAN may choose to use the floating lien to secure its exposure, particularly if the tenor of the loan exceeds the average maturity of the assets being financed. Also known as FLOATING CHARGE. See also SECURITY INTEREST.

Share on facebook
Share on twitter


Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.