Taking Security

Abstract This chapter examines security interests, which provide a creditor with rights over a debtor’s property to secure a debt. It distinguishes between possessory security interests, such as pledges and liens, and non-possessory interests, such as mortgages and charges, with a focus on the latter. The chapter discusses the types of security, including the pledge, lien, mortgage, and charge, and explores their application to both tangible and intangible assets, particularly fixed and floating charges. It also covers the creation and enforcement of security, emphasizing the critical distinction between fixed and floating charges, as well as the impact of registration on priorities. Finally, the chapter concludes with a detailed examination of the registration system for company charges and the practical consequences of non-registration.