Security

Abstract

This chapter deals with security, an arrangement which is collateral to an obligation and makes the creditor more sure of performance. Unlike other property rights, a security interest cannot exist without there being an obligation whose performance it is meant to ensure: once the obligation ends (by performance, set-off, release, and so on) the security interest dies. The ordinary creditor of an obligation can enforce the obligation by getting judgment in his favour and then using the machinery of justice to levy execution on the defendant's assets in order to satisfy the claim. Security can be classified into personal security and real security. One has the right to repay a debt and redeem the property unencumbered by the security interest. This is called in common-law countries the ‘equitable right to redeem’. This chapter also discusses the main types of security interest including non-consensual security, consensual security, possessory security, proprietary security, and land mortgages. It also explores hire purchase and retention of title.