| Commentary

16.1 Transfer

| Commentary

16 Security bills

16.1 Transfer

As for security bills, the transfer may be effected by way of assignment or sub-mortgage. The grantor may be a party for the purpose of acknowledging the amount due1, but should not confirm the transfer, lest this make the transfer itself a new bill of sale.

Where there is not only a transfer of a security bill but a fresh advance, whether or not the latter brings the outstanding indebtedness over the amount of the original loan, it is most prudent to use two documents, a transfer of the existing bill containing no

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