Economics 3366A/B Study Guide - Quiz Guide: Scots Law, Pari Passu, Floating Charge

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Possessory: there are two in scots law - pledge and lien. Land (and rights over land) secured by standard security. Pledge is a security where the owner of the asset gives possession to the creditor until the security is paid. Lien is a security that arises because a particular factual situation has occurred. If you take a car into be repaired, the garage has physical control of the car, if you pay you get the car back. If you don"t they can exercise repairer"s lien and withhold the car. Landlord"s hypothec is a hypothec in favour go landlords in relation to unpaid rents - if the rent has not been paid the landlord has a security over assets that the tenant has on the property. Hypothec is a generic expression in scots law, it is a security over assets that you don"t have possession of. Used to apply to all tenancies - commercial/personal

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