Assignments by way of security

Published by a ��Ӱ�� Banking & Finance expert

Practice notes

In-house

Assignments by way of security

Published by a ��Ӱ�� Banking & Finance expert

Practice notes

In-house

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

What is an assignment by way of security?

Assignments by way of security are a type of mortgage. They involve:

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an assignment (ie transfer) of rights by the Assignor to the assignee

subject to:

•
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

Jurisdiction(s):

United Kingdom

Key definition:

Assignor definition

What does Assignor mean?

The entity disposing of an asset by an assignment.

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