A part from the appointment of a receiver, four other events will cause a floating charge to crystallize. Describe these four events.

• Failure to pay the principal or interest when due and payable provided the charges takes some step to realize the security.
• Commencement of recovery proceedings against the company.
• Commencement of winding up the company.
• Cessation to carry on business by the company.
• Occurrence of an event which under the terms of the debenture causes crystallization.
• It is a company has a number of floating charge, the crystallization of one causes the crystallization of the others.

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