Charges under Cyprus law, can be of a fixed and floating nature,
(i.e fixed and floating charges).
Fixed and floating charges have several features in common:
1) Most charges need to be registered with Cyprus Registrar of
Companies and are void against a liquidator, administrator or
creditor with an interest in the secured asset if not so
registered, thought the contract between the company and the lender
is still valid.
2) the charge holder right prevails over other creditors on
insolvency.
3) the charge holder can take possession and sell the assets
which are the subject of the charge.
Some general principals outlined
A fixed charge will take a priority over a floating charge on
the same asset. Creditors are free to enter into the agreement in
between themselves to alter the order of priority of their
charge.
