Financing is issued and obtained in many forms. These include bank loans, private equity and loans from shareholders, or leasing, hire-purchase agreements, sale and leaseback agreements and factoring. In all of these relationships, security rights play an important role.
When issuing and obtaining financing, it is of vital importance to have a clear picture of your risks. You can limit those risks by demanding security rights. The most commonly occurring security rights in financing constructions are pledge rights and mortgage rights. Similarly, personal security rights are often required such as a personal suretyship or joint and several liability.
The attorneys in the Insolvency Law & Restructuring practice group at BANNING offer advice to both lenders and borrowers when entering into agreements in which security rights play a role. We can also advise on and assist in the enforcement of security right. We regularly litigate on these issues.