The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
The nature of the asset covered by the security often dictates the manner in which it will be realised to produce value for the security holder upon enforcement of security. Cash in a bank account is perhaps the simplest asset to realise as it can normally be either set off or appropriated against the secured debt.
For issues a security holder should consider before enforcement of security, see Practice Note: Getting ready to enforce security.
For enforcement of different types of security, see the following Practice Notes: Enforcement—debentures and floating charges and Enforcement—fixed charges.
For enforcement over shares and land, see the following Practice Notes: Enforcement—security over land and Enforcing share security which deal with issues arising specifically on the enforcement of security over these two important asset classes.
There are a number of ways a creditor can create a security interest in (or have first recourse to) cash in a bank account and this depends upon whether the account in which the cash resides is held with the security provider or with a third party institution. See Practice Note: Taking security over cash deposits in bank accounts. A recap of the main types of security or quasi-security over cash in an account is given below.
A deposit made with a bank creates an intangible asset—a debt
**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
The principle of transferred maliceIf a person has a malicious intent towards X and, in carrying out that intent, injures Y, he is guilty of an offence. So, if D shoots at A with intent to kill him but kills B by mistake it is murder; the mistake as to the identity of the victim is irrelevant as D
When is quantum meruit and quantum valebat relevant?Claims in quantum meruit (value of services) and quantum valebat (value of goods) arise in diverse situations ranging from where contractual terms are silent on issues of payment to where there is no contract at all (Serck v Drake & Scull).General
Disposal and devolutionThe equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:•transfer, lease or mortgage inter vivos, or•by will (it passes on intestacy)No cloggingIt is a fundamental principle of a mortgage that there must be no clog
Deceit—what is it?A deceit occurs when a misrepresentation is made with the express intention of defrauding a party, subsequently causing loss to that party.The elements of a claim in deceit are:•a clear false representation of fact or law•fraud by the maker, in the sense that they knew that the
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.