Effects Of Special Notarial Bonds Over Tangibles

Question 1

What are the 3 effects of special notarial bonds over tangibles?

Answer 1

1. Debtor defaulting and foreclosure
2. Bondholder’s preference in general
3. Insolvency of the debtor

Question 2

Are paratie executie clauses allowed?

Answer 2

No, because the creditor is not in possession of the item

Question 3

What happens if the bonded article is attached in execution by another creditor

Answer 3

The bond holder is paid first from the proceeds of the sale

Question 4

When will the creditor have no secured claim (the bond will offer no security) and what section is it of the solvency act?

Answer 4

Section 88, if:

A) The debt was incurred more than 6 months before the lodging of the bond
AND
B) The debt was not previously secured
AND
C) The estate of the debtor is sequestrated within 6 months of lodging the bond

Question 5

Whop is section 88 aimed at

Answer 5

Creditors who only take steps to secure their claim once the debtors solvency is about to happen

Question 6

since the same property can be the subject 0of more than 1 bond, what is the ranking?

Answer 6

The bonds rank in order of preference according to the date of registration

Question 7

How is a special notarial bond terminated?

Answer 7

Payment if the principle obligation

Question 8

What brings the security to and end

Answer 8

Destruction of property