If the lender is unable to convert his floating charge into a fixed charge, then his charge is void. The lender can get such a change done. The process of such a change is called the process of crystallisation. A floating charge becomes a permanent charge in the following cases
1. When the organization ceases to do business.
2. When the winding up of the company begins.
3. When the state recipient or disburser is appointed for the properties of the institution.
4. When the institution makes error in payment of interest.
5. When the assets of the business are transferred to the creditors.
6. When the institution commits error in repayment of the loan and the person in charge exercises his right.