Why are floating charges seen by both banks and corporate customers as a useful form of security in the UK and in other countries such as Australia and New Zealand?

DISCUSSION: Floating charges are handled differently according to the banking system. For example, while American law does not recognise them and Scottish law only began to recognise them in 1962, British law has recognised them for over 100 years. ii) What are the difficulties with floating charges that have caused other systems not to recognise this type of charge, and iii) how are these difficulties overcome in the business environments that accept them?

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