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Fill in the gaps with correct words from the list.
course; collateral; Fixed; defaults; foreclose; retain; Floating; dispose; recover; encumbrances;

In the UK, there are different types of (1 p.) that can affect the ownership or use of property or assets. Here are the most common ones:

1. (1 p.) Charge: This is a type of security interest that is created when a lender takes a specific asset, such as a building or a piece of equipment, as (1 p.) for a loan. The borrower cannot sell or (1 p.) of the asset without the lender's permission, and the lender has the right to take possession of the asset if the borrower defaults on the loan.

2. (1 p.) Charge: This is a type of security interest that covers a group of assets, such as inventory, receivables, or equipment, that may change in quantity or value over time. The borrower can use and dispose of these assets in the ordinary (1 p.) of business, but if the borrower (1 p.) on the loan, the lender can take possession of the assets to recover the outstanding debt.

3. Mortgage: This is a type of security interest that is used to secure a loan on real estate. The borrower gives the lender a security interest in the property, and the lender can (1 p.) on the property if the borrower defaults on the loan.

4. Lien: This is a legal claim that a third party can place on goods that are already in their possession. This claim gives them the right to (1 p.) the goods until the debt owed by the owner of the goods is paid off.

5. Pledge: This is a type of security interest that is created when a borrower gives possession of an asset, such as a valuable item of jewellery, to a lender as collateral for a loan. The lender has the right to keep the asset until the borrower repays the loan. If the borrower defaults on the loan, the lender can sell the asset to (1 p.) the outstanding debt.

It is important to understand the different types of encumbrances when dealing with loans or other financial agreements, as they can affect your rights and obligations as a borrower or lender.