Debentures with floating security (art. 327 LGS)
Article 327 of the General Companies Law defines the floating security: it charges to payment all present and future assets of the company, with the privileges of pledge, mortgage or antichresis.
What article 327
Article 327 governs the floating security of debentures.
The issuance of debentures with floating security charges to their payment all rights, movable and immovable property, present and future, or a part thereof, of the issuing company, and grants the privileges corresponding to pledge, mortgage or antichresis, as the case may be. It is not subject to the formal provisions governing those rights in rem.
Source: Law 19,550, art. 327 — InfoLEG (updated official text)
Commentary
The floating security 'encumbers' the entire assets without immobilizing them: the company continues operating and disposing of its assets, but the debenture holder has a privilege that materializes if a default occurs (art. 328).
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