“secure transaction,” a transaction that creates a security right on a mobile asset. There is therefore no significant difference between the title of the model law in language versions that do not use the term “secure transaction” and the title of the UNCIT Legislative Guide on Secure Transactions. This is the credit unit that acts as a lender (lender or debtor and secured creditor) and the company that receives it, i.e. the debtor or borrower (borrower or debtor). The credit transaction is usually carried out through a credit or credit facility. The guarantee granted by the debtor is not a personal guarantee, but a security guarantee by which the lender acquires a right of ownership over one or more of the borrower`s assets or assets. These guarantees may be made on personal property or personal property of various types, such as inventory, receivables and the borrower`s equipment or machinery. The two transactions can be carried out by two separate contracts – a credit contract and a security contract – or a single contract that covers all the parties` agreements. The benefits to the lender are enormous, as the repayment of the credit does not depend on the simple word of the debtor, but the lender enjoys a very special right of guarantee, that is, a real right (security right) on certain goods.
This allows you to control assets in the event of default, recover your credit without litigation and become a priority in the event of bankruptcy. On the one hand, there is the granting of a secured loan and, on the other hand, the establishment of the security interest guarantee which guarantees the return of the credit. Both operations are usually performed simultaneously. The concept of a secured transaction refers to both the secured credit transaction and the guarantee granted by the debtor himself, which is almost always a transferable guarantee. Want to know what these types of processes are, more and more often? Do you want to know all its terminology and the translation problems that surround them? Be sure to read this entry. We saved you a surprise for the last one. Well, that`s if we don`t want to be too hard. The problem stems from the existence of this term in Spanish law and in the legal systems of many other countries. This is explained in a footnote of the model law itself: we have recently been working on the translation of a long and very interesting document on this subject. The objective of a secured transaction is to provide credit to businesses in a simple, fast and affordable manner, while the lender receives credit repayment guarantees.
This facilitates activity and economic growth. We give you a free English-Spanish glossary containing more than 300 terms and phrases on corporate law. Simply fill out this form and receive it immediately by email. Collateral is therefore a security that is often called security. Transactions secured by real estate guarantees such as mortgages and which are governed differently in the field of real estate law are generally not included in the category of secured transactions. Frequent short phrases: 1-400, 401-800, 801-1200, Plus seems a simple problem, but it contains more problems than it seems.