What is a 'Legal Charge' against a Company?

bob_dob

Hi, im not sure which forum catagory to put this in but please can anyone tell me what, in layman terms, if a company has a 'legal charge outstanding' or 'Guarantee+Debenture outstanding' on them? A company i work for has those terms next to them on a website after i Googled them along with the name of Barclays Bank? And the dates varied from October 2008 to March 1997.
Any answers would be appreciated.

Ebe_Scrooge

Google threw this up :

http://www.qfinance.com/dictionary/legal-charge


Definition of legal charge



Legal
legal document showing ownership of UK property in the United Kingdom, a legal document held by the Land Registry showing who has a claim on a property "

Definition of debenture



Business
acceptance by firm of debt obligation the written acknowledgment of a debt by a company, usually given under its seal and containing provisions as to payment of interest and principal. A debenture may be secured on some or all of the assets of the company or its subsidiaries.


My - completely uneducated ! - guess would be that it's a similar idea to a mortgage - the bank has lent money to the business, and "owns" all or part of the property as security against the loan.

bluetownbarry

Ebe_Scrooge wrote: »

Google threw this up :

http://www.qfinance.com/dictionary/legal-charge


Definition of legal charge



Legal
legal document showing ownership of UK property in the United Kingdom, a legal document held by the Land Registry showing who has a claim on a property "

Definition of debenture



Business
acceptance by firm of debt obligation the written acknowledgment of a debt by a company, usually given under its seal and containing provisions as to payment of interest and principal. A debenture may be secured on some or all of the assets of the company or its subsidiaries.


My - completely uneducated ! - guess would be that it's a similar idea to a mortgage - the bank has lent money to the business, and "owns" all or part of the property as security against the loan.

100% correct - not at all uncommon.