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Flashcards in Rights In Security Deck (10):
1

What are the three categories of security

Real security- creditor holds a real right in addition to his personal right so two real rights exist in the same thing

Personal security - creditor holds personal right against guarantor of debtor in addition to that he holds against debtor

Functional security- creditor retains full ownership until debt is paid off

2

How is security over heritage enforced

Calling up notice procedure
Mortgage Rights Act 2001
Home owner and debtor protection Scotland act 2010

3

What are the two main types of security over moveables

Pledge:
Created through delivery to creditor

Lien: created through operation of law where creditor is in possession of goods
Special lien: specific debt
General lien: all sums owed, only available to lawyers, bankers etc

4

What's the other security over moveables

Landlords hypothec
Created through operation of law since landlord has civil possession of the goods
Occurs when there's a default in commercial rent

5

How are securities over moveables enforced

Apply to court for power of sale

6

How is a floating charge created

It's created in writing and registered in the companies register
(Note that floating charge is an "elastic" security that floats over everything in their patrimony and can only be used by companies and LLPs)

7

How is a floating charge enforced

On default a creditor may appoint an administrator
If company put into liquidation, charge attaches

8

How is a security terminated

Discharge of debt - note registered security requires this to be registered

Property no longer exists

Renunciation by creditor

Enforcement by creditor

Confusion

9

How is security over heritage created

Created in writing and registered.
Form A (loan plus security)
Form. B (security only)

10

Is a special lien voluntary

No