Perfection

A word about credit risk mitigation Go Premium Legal security: Mortgage • Pledge • Lien • Bailment Equitable security: Charge • fixed • floating | ABWOS | Equitable lien Credit risk mitigation: Title transfer | Guarantee | Letter of credit | Netting Friends and relations: Rehypothecation | Equivalent Documents: 1994 NY CSA | 1995 CSA | 1995 ISDA CSD (English law) Regulation: LPA 1925 | Financial Collateral Regulations | LPMPA 1994 Index: Click ᐅ to expand: Taking security Security Collateral Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Perfection
/pəˈfɛkʃən/ (n.)

1. In the lore of security-taking: The juridical art of making a security interest “work” - in legal circles, often a security interest like a fixed charge, perfect: tickety-boo, compliant with all formalities and enforceable in a court of your choosing. This might be registration of a charge at companies house, notification to the chargor, standing on one leg at the crest of Kilimanjaro and gravely reciting a Rudyard Kipling poem. Magic words, horcruxes and amulets that make the mystical, semi-divine, state of suretyship hum. Sadly, the Financial Collateral Directive has taken much of the fun out of this, by rendering it basically unnecessary: if i charge counts as a “financial collateral arrangement”, the formal registration and perfection requirements which would otherwise apply (eg notification; registering the security interest with the registrar of companies, the hilarious pantomime of the Slavenburg filing) do not apply.

2. That thing that Voltaire said was “the enemy of good enough”.

See also

• Perfection is the enemy of good enough
• Security
• Fixed charge
• Financial Collateral Directive
• Slavenburg
• Fairground Attraction