Assignment by way of security: Difference between revisions

Assignment by way of security (view source)

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 An [[assignment by way of security]] is an assignment which does not meet all the formal requirements for a [[legal assignment]] set out in the [[Law of Property Act 1925|Law of Property Act]]. So it's not as good. By definition it is an [[equitable assignment]] and not a [[legal assignment]], the differences relating to how an assignee enforces its claim against contracting party: a legal assignee can sue in its own name; and equitable assignee only by joining the assignor to the action (I know: shoot me, right?).
-===Is there anything to be said for having an assignment by way of security if you already have a charge?===
+===Do I need an [[assignment by way of security]] if I have a [[charge]]?===
-Probably not, unless your the sort of person who wears two pairs of underpants in case one pair fails.
+Probably not, unless your the sort of person who wears two pairs of underpants in case one pair fails. Both are equitable interests, but a fixed charge is much more formal.
 {{assignment and set off}}