hypothec


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hypothec

a security over moveable property that permits the borrower to retain possession. A hypothec is equivalent to a charge and is employed in international trading transactions. A letter of hypothecation is a letter addressed to a bank giving details of a shipment of goods relating to a draft. Should the draft be dishonoured, the bank is empowered to sell the goods. Maritime liens are a form of hypothec. Seamen have a lien for wages; a salvor for any sum due on salvage; a person repairing a ship or giving supplies in a foreign port for the services; one suffering loss as a result of damage caused by the ship. Claims under bonds of BOTTOMRY and RESPONDENTIA are secured by hypothec.

In Scotland special hypothecs are known:

  1. (1) the landlord's hypothec is a security over the invecta et illata (things brought or carried into the premises) subject to recognized exceptions in respect of one year's rent and not for prior arrears. The security will attach goods on hire or hire purchase;
  2. (2) the feudal superior's hypothec for feu duty, of little significance since for some time feu duties have been statutorily redeemed and the feudal system has been abolished by the Abolition of Feudal Tenure Act 2000;
  3. (3) a solicitor has a hypothec over any expenses to which his client is entitled;
  4. (4) the maritime hypothecs mentioned in respect of England are recognized in Scotland too.
References in periodicals archive ?
A hypothec is an ancillary right in a property of another and it serves as a security for an obligation.
However in my view even though the implementation of Hypothec has posed some challenges to banks and MFIs they need to comply with the law.
The kinds of universalities that exist may vary from one system to another, but we have already seen examples in Quebec law: the private property of a spouse in a matrimonial regime, the property in a substitution, or property subject to a hypothec of a universality.
108) In France, the administrator (syndic) may register a hypothec over the unit for contributions due over the last five years.
If demolition work is necessary for the purpose of a construction project, such work will also give rise to a legal hypothec of construction.
The debentures are secured by a hypothec over all of Sonomax's movable property.
I have been told of escrow and hypothec, but the latter I believe is not available to foreigners.
3) "security interest" means any interest in property that secures payment or performance of an obligation and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for105; 224(1.
Investment is influenced by various factors: tax rates, inflation level and cash flow; and the main participants are: investors, hypothec suppliers, renters, government, final real estate users, etc.
The credit facility is secured by a first ranking hypothec on three income-producing properties having a total net carrying amount of $46,149 and a second ranking hypothec on two income-producing properties having a total net carrying amount of $243,201.
111) In the latter case, the creditor is well-advised to obtain a hypothec against such property (e.
In addition, the Company has issued an irrevocable letter of credit amounting to $389,282, along with a first rank movable hypothec, which can be subordinated in regard to lending institutions, of $1,000,000 covering the Company's tangible assets located in the rented premises.