A creditor whose debt is secured, e.g. by a charge on the property of the debtor; this may take the form of a debenture where a company is concerned. The charge may be a fixed or a floating charge. A fixed charge is one where the actual property is specified; a floating charge is One which attaches to the property of the debtor generally the actual property only becomes known when the debt is payable, when it is said to crystallize.
|Reference: The Penguin Business Dictionary, 3rd edt.|