standard securities Flashcards
what is a standard security
legal agreement which secures money borrowed from a bank, building society or creditor in land otherwise known as a mortgage. the security is the accessory so if the debt obligation is extinguished so is the security (Albatown v credential group)
what is included in form A
Form A is used where the personal obligation of the debtor is contained in the standard security which consists of the borrowers name, the personal obligation and the name of the lender and the amount borrowed, the rate of interest and repayment details, a grant of security over the specified property, incorporation of standard conditions and grant of an absolute warrandice.
what is Form B
where there is a separate debt obligation constituted elsewhere, it is similar to form A however does not contain the amount of the loan or the rate of interest these are contained in a separate unregistered minute of agreement
standard conditions are imposed by what schedule
schedule 3 of the 1970 act which must apply to every standard security as stated in section 11
the conditions can be variable and what else
variable, non variable and partially non variable. if the conditions are not imposed there is doubt as to whether there is a security at all
a breach of conditions can result in what
a breach of can result in a voidable contract (trade development bank ltd v Warriner and Mason ltd)
