LAW20013 Study Guide - Final Guide: Beneficial Ownership, Council Of Australian Governments, Manually Coded Language
Document Summary
Security: right or interest in the property of the borrower (as opposed to k enforceable personally) + priority. All obligations are enforceable against the general assets of the debtor. Property security: provides an alternative method of enforcement against specific assets of the security provider ahead of (in priority over) other creditors. Includes goods, tangible and intangible (e. g. choses in action) objects are usually owned absolutely and indivisibly. Four ways in which security can arise: (1) transfer title mortgage. (2) by agreement charge (3) possession (delivery actual or constructive) pledge (4) operation of law lien. Given by holding company in favour of subsidiary, noting will guarantee debts of subsidiary. Test: whether a letter of comfort is a moral or legal obligation will depend on whether the wording or intention creates a legal obligation or not. Court will look at 1) intention to create legal relations; 2) certainty of terms. Held: look at conduct of parties, rather than merely subjective intention.
