A legal charge on property refers to a mortgage on land, buildings or other assets, explains Fortune Law. Legal charges arise from agreements that give lenders an interest over a borrower's assets. A legal charge does not confer ownership rights.
Legal charges are a method of securing debts, notes Fortune Law. However, these instruments do not give creditors ownership rights over land or any other property used as collateral. Instead, they legally limit what a borrower can do with the asset in question. If the borrower reneges on the terms of the agreement, a lender has the right to enforce the legal charge. Under certain circumstances, the lender can enforce the agreement without going through a court.
There are two types of legal charges, explains Company Law Club. A fixed charge is created on specific assets such as land and buildings. A floating charge, on the other hand, is created on all current and future assets that a borrower owns. Unlike fixed charges, floating charges allow companies to exploit assets securing a debt in the course of their operations without constantly seeking consent from the lender.
Floating charges are typically the preserve of select individuals and corporations -- limited liability partnerships, companies, and under certain circumstances, farmers, warns Fortune Law.Learn More
CEMA, or Consolidation, Extension and Modification Agreement, mortgages are available in the state of New York and help customers reduce tax costs, states Master Mortgage. CEMA is not a specific type of loan, but rather an agreement applied to the loan that reduces taxes owed, states the New York Times.Full Answer >
A Stafford loan is a higher-education loan that the federal government funds through the Department of Education. The loan amount depends on the student's dependency status and grade level and whether or not the loan is subsidized. These loans can be used for tuition, books, meals and housing.Full Answer >
To apply for financial aid, an applicant must complete the Free Application for Federal Student Aid through the U.S. Department of Education and complete an application for financial aid at the institution of higher learning where she desires to attend. Additional forms may be required by the college.Full Answer >
A common starting point to building credit is to get a credit card and use it responsibly over time. On-time payments account for 35 percent of a person's FICO credit score, according to NerdWallet. A challenge is that it is difficult to get a standard card without a credit history.Full Answer >