Part V Enforcement, 19 Enforcement of Financial Devices Involving The Transfer or Retention of Title
Hugh Beale, Michael Bridge, Louise Gullifer, Eva Lomnicka
- Security interest
19.01 As noted above,1 financing devices that involve either the retention or the transfer of title, although performing an equivalent function to security interests, are generally not considered ‘security’ under English law. Hence the general characteristics that security interests display when they are enforced,2 in particular the obligation of the secured creditor to account for any surplus (or ‘windfall’) and the obligation of the debtor to make good any deficit (or ‘shortfall’), do not arise. The financing devices, being straightforward commercial contracts...