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 ?
87) Thus, if a co-debtor is not involved in the renewal of a hypothecary loan, the new terms to which the other parties have consented are not opposable to the co-debtor who was excluded from the agreement.
Financial institutions will generally exercise their hypothecary rights and personal recourse against the debtor first, before turning to the surety, even if the surety has renounced the benefit of discussion.
The article also takes upa comparative analysis of the protection offered to owners and to hypothecary creditors by the Torrens system and that offered by acquisitive prescriptinn, which plays a fundamental role in Quebec, and by title insurance, winch is very popular in the Unitad States and which could equaUy be implemented in Quebec without major changes.