What is a quasi-security?

What is a quasi-security?

Quasi-security is the term used to cover a broad range of arrangements which are not strictly speaking security but have a similar economic effect. Quasi-security provides protection for the party receiving it and can increase the likelihood of a lender being repaid.

Is a guarantee quasi-security?

English law recognises four types of security (mortgages, charges, pledges and liens). A much broader range of arrangements could fall under the umbrella of quasi-security eg guarantees, comfort letters and set-off rights. Some lawyers even consider negative pledges to be a form of quasi-security.

Is guarantee a type of security?

A guarantee is a simple security document. It states the conditions where the guarantor must take over the borrower’s repayment obligations upon default. As a lender, you want to be sure that the guarantor will be able to satisfy its obligations under the guarantee.

What is quasi guarantee?

1. An agreement formally signed, ratified, or adhered to between two nations or sovereigns; an international agreement concluded between two… — Also spelled guaranty treaty. — Also… QUASI-GUARANTEE TREATY quasi-guarantee treaty.

Is Negative pledge a security?

A negative pledge does not give rise to a security interest under English law because it does not give the lender any proprietary rights in the borrower’s property. Instead, a negative pledge is a contractual restriction on how the borrower may use its assets.

What is the difference between security and guarantee?

As nouns the difference between guarantee and security is that guarantee is anything that assures a certain outcome while security is (uncountable) the condition of not being threatened, especially physically, psychologically, emotionally, or financially.

Is a guarantee a debt?

A guaranteed loan is a loan that a third party guarantees—or assumes the debt obligation for—in the event that the borrower defaults. Sometimes, a guaranteed loan is guaranteed by a government agency, which will purchase the debt from the lending financial institution and take on responsibility for the loan.

What is an example of quasi contract?

Quasi Contract Examples Let’s say you pay for a pizza to be delivered. If that pizza is delivered to another house, and someone else enjoys your three-topping special, a quasi contract could be initiated. Now, the pizzeria could be court ordered to reimburse you for the amount you paid for that pie.

What is the purpose of negative pledge?

The purpose of a negative pledge is to ensure that other creditors do not obtain a preferred claim over the assets of the debtor in the event of insolvency.

What is a negative pledge loan?

A negative pledge clause is a type of negative covenant that prevents a borrower from pledging any assets if doing so would jeopardize the lender’s security. This type of clause may be part of bond indentures and traditional loan structures.

What is an example of closed end credit?

Common types of closed-end credit instruments include mortgages and car loans. Both are loans taken out for a specific period, during which the consumer is required to make regular payments. For example, if a customer fails to repay an auto loan, the bank may seize the vehicle as compensation for the default.

Is there such a thing as quasi security?

No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Group other than as permitted by this Agreement. No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Borrower Security Group other than Permitted Security.

Which is the best definition of the word quasi?

Definition of quasi. (Entry 1 of 2) 1 : having some resemblance usually by possession of certain attributes a quasi corporation. 2 : having a legal status only by operation or construction of law and without reference to intent a quasi contract. quasi-. combining form.

What is the legal definition of a quasi contract?

In the legal sense, the term denotes that one subject has certain characteristics in common with another subject but that intrinsic and material differences exist between them. A Quasi Contract is an obligation invoked by law in the absence of an agreement.

What makes a skincare product a quasi drug?

According to the Pharmaceutical Affairs Act, all skincare products categorises as medical drug, quasi drug or cosmetic.