Characteristics of floating charges:

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  1. Floating charge is a charge on a class of assets of the company, both present and future.
  2. The class is one which in the normal course of the business of the company would be changing from time to time.
  3. It is found that unless some steps are taken by or on behalf of those interested in the charge, the company may carry on its business in the same way as it carried earlier.
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