This Overview is a guide to the Banking & Finance content within the Types of quasi-security subtopic, with links to the appropriate materials.
Quasi-security is the term used to cover a broad range of arrangements which are not strictly speaking security but have a similar economic effect.
Quasi-security provides protection for the party receiving it and can increase the likelihood of a lender being repaid. However, quasi-security is different from security in that security creates rights against the assets of the security provider whereas quasi-security creates rights against a person (ie against the quasi-security provider itself rather than its assets).
For more information about how quasi-security is different from security, see Practice Note: Difference between security and quasi-security.
For information about the different types of security available under English law, see Practice Note: Types of security.
The key types of quasi-security are:
guarantees
comfort letters
set-off
netting, and
standby credits and on demand guarantees/bonds
A negative pledge is a contractual undertaking which prohibits or restricts an entity from creating encumbrances
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