Economics 3366A/B Study Guide - Quiz Guide: Property Law, Floating Charge, Incorporeality
23 Sep 2020
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Security rights: when someone is unable to pay his debts, creditors can take any asset they want, paritas creditorum. It applies to all subject, i. e. private persons, corporate, and the state. Ordinary or unsecured creditors, do not have bargaining power to create priority. Creating priority that in case someone is unable to pay, you receive the money anyway. Creditor have access to every asset a debtor has. Person"s assets: traditionally immovables (house, land), movables (car, valuables you wear) Disadvantage: in case of parents" insolvency, the bank becomes one of the many creditors. A contractual promise does not give the creditor direct access to certain specific assets of a debtor and does not give the creditor priority: property law. In order to exclude other creditors: by statute: state. An arrangement under which the creditor can separate his assets in order to be kept; done in two ways: possession.
