What are Mortgages and Charges?

• A charge is security for the payment of a debt or other obligation that does not pass 'property' or any right to possession to the person to whom the charge is given.
• A mortgage is security for the payment of a debt or other obligation that passes 'property' but no right to possession to the person to whom the mortgage is given.

The following require registration in England and Wales:

A charge to secure any issue of debentures. A debenture is an instrument issued by a company as evidence of a debt or other obligation. It includes debenture stock, bonds and any other securities of a company, whether or not it forms a charge on the assets of the company.

A charge on uncalled share capital of the company. Uncalled share capital is the balance owing for shares that are issued partly paid.

A charge created or evidenced by an instrument, which, if executed by an individual, would require registration as a bill of sale. A bill of sale is an instrument creating or evidencing a charge or mortgage over goods, including fixtures and agricultural crops in certain cases, but not ships or aircraft.

A charge on land (wherever situated), or any interest in it, but not a charge for any rent or other periodical sum arising from land. Technically, land includes property.

A charge on book debts of the company. Book debts are debts that in the ordinary course of a company's business are commonly entered in its books.

A floating charge on the company's undertaking or property. A floating charge is a charge that does not affect the assets charged until some event crystallises the charge, fixing it to a certain point in time.

A charge on calls made but not paid. Calls made are demands for payment of any part of the balance owing in respect of shares which are issued partly paid.

A charge on a ship or aircraft or any share in a ship.

 A charge on goodwill, or on a patent, trademark, registered design, copyright or design right or a licence under or in respect of any such right.

 An 'instrument' is usually a document in legible form but it can also exist in electronic form, 'evidence' means to provide proof of the existence of something.