- Applicable law — Intangibles as goods
This chapter studies security over intangibles. Security over pure intangibles can only be created by way of mortgage or equitable charge. However, before examining the particular practical demands that are made of the law of security, it is necessary to begin with a consideration of the various forms of security over personal property recognized by English law. English law recognizes four forms of consensual security over personal property: the pledge; the lien; the mortgage; and the charge. Of these, the pledge and the lien are classified as possessory securities, while the mortgage and the charge are non-possessory securities. This distinction is of great importance, for a possessory security cannot be asserted over choses in action, for the simple reason that it is not possible to take physical possession of intangible property.