General It is possible to mortgage or charge movable goods. However, the Bill of Sales Acts impose severe practical restrictions on the grant of security by an individual over goods. A written mortgage or charge of goods must be registered within strict time limits. The requirement for registration is designed to protect against the risk that a person with apparent […]
General It is possible to mortgage or charge movable goods. However, the Bill of Sales Acts impose severe practical restrictions on the grant of security by an individual over goods. A written mortgage or charge of goods must be registered within strict time limits. The requirement for registration is designed to protect against the risk that a person with apparent […]
Debts, Accounts and Policies Certain types of assets are effectively legal claims, which can only be enforced by Court Action. A debt, insurance policy or bank account can be mortgaged by being assigned to the mortgagee as security. In order to complete the security, notice should be given to the debtor or the party who has the obligation to pay, who […]
Nature A guarantee in the strict sense is an agreement between a guarantor and a lender that the guarantor is liable for the debt of the guaranteed borrower, if that borrower defaults in his, her or its obligations to the lender. This means that the guarantor’s liability depends on the borrower’s liability being validly in place and there being a […]
Form A guarantee must be in writing and will usually be executed as a deed. The guarantee document will usually provide that the consideration constitutes the bank making the facilities or accommodation available to the customer whose liabilities are guaranteed. Execution as a deed obviates issues around consideration such as past consideration etc. In consumer cases, the Consumer Credit Act […]