The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
Assignments by way of security can take different forms and it is important to understand how they are created and their effect. Security over choses in action such as debts and other contractual rights is often taken by way of an equitable or statutory assignment by way of security.
This Practice Note explains:
what assignments by way of security are
which types of assets they are used for
whether they take legal, statutory or equitable form and the advantages of the statutory form
why it is important to serve notice of an assignment by way of security
Assignments by way of security are a type of mortgage. They involve:
an assignment (ie transfer) of rights by the assignor to the assignee
an obligation to reassign those rights back to the assignor upon the discharge of the obligations which have been secured
When the obligations that have been secured have been discharged, the assigned rights have to be reassigned back to the assignor. This is different to a charge which automatically terminates when the secured liabilities are discharged.
Assignments by way of security are one means by which security can be created over certain choses in action. A chose in action is
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.