Part V Enforcement, 18 Enforcement of True Security Interests
Hugh Beale, Michael Bridge, Louise Gullifer, Eva Lomnicka
- Lien — Mortgage — Pledge
This chapter explains how a number of general issues arise in connection with the enforcement of true security interests that will be taken before particular enforcement issues are dealt with under the relevant head. True security interests consist of the four nominate types of security recognized in English law, namely, the three consensual securities of pledge, mortgage, and charge, together with the non-consensual lien. The obligation of a secured party to account for any surplus obtained is implicit in the nature of security. In the case of a pledge, this is consistent with the pledgor’s residual property rights. This obligation is also consistent in the case of mortgages. Charges and mortgages may be taken together, given that they are assimilated in drafting practice and in judicial treatment as alike in recognizing the borrower’s equity of redemption.