FIXED CHARGE Meaning and
Definition
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A fixed charge refers to a specific sum of money or obligation that remains constant, typically in a financial or legal context. It is a predetermined charge or expense that does not fluctuate with changes in other variables.
In finance, a fixed charge relates to a set amount of money that must be paid regularly by an individual or business, regardless of their revenue or financial circumstances. For instance, it can be a fixed amount of interest or principal that is due on a loan or debt, irrespective of the borrower's income or profits. This provision prioritizes the lender's rights to receive a consistent repayment before any other stakeholders.
Within the legal field, a fixed charge pertains to a secured interest claimed by a creditor over specific assets. These assets are identified in advance and serve as collateral for the debt, ensuring the lender's priority claim in case of default or bankruptcy. This means that the creditor has the right to recover the specified amount through the sale or liquidation of the pledged assets.
Overall, a fixed charge signifies a constant financial liability or encumbrance that remains unaltered, regardless of external circumstances or fluctuations. It ensures predictability for both the debtor and creditor by establishing a consistent repayment or claim amount, promoting financial stability and security.
Common Misspellings for FIXED CHARGE
- dixed charge
- cixed charge
- vixed charge
- gixed charge
- tixed charge
- rixed charge
- fuxed charge
- fjxed charge
- fkxed charge
- foxed charge
- f9xed charge
- f8xed charge
- fized charge
- ficed charge
- fided charge
- fised charge
- fixwd charge
- fixsd charge
- fixdd charge
Etymology of FIXED CHARGE
The word "fixed" comes from the Old English "fīxian", meaning to make firm or set, which can be traced back to the Latin "figere". "Charge" originates from the Old French "charger", meaning to load or burden, which ultimately derives from the Latin "carricare", meaning to load. The combination of these two words gives us the term "fixed charge", indicating a set or predetermined burden or expense.
Similar spelling words for FIXED CHARGE
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