Prospective
Accessory security rightsS
16Accessory security rightsS
(1)Subsections (2) and (3)—
(a)apply, and apply only, in relation to any claim assigned in whole, but
(b)are subject to any express provision to the contrary in the assignation document.
(2)Subject to anything which requires to be done under subsection (3), the assignee acquires, by virtue of the transfer of the claim, any security (in so far as the security is transferable) which relates to, and only to, the claim transferred.
(3)Where the performance of some act by the assignor is necessary for the security to transfer to the assignee, the assignor must—
(a)perform that act, and
(b)do so as soon as reasonably practicable after the claim is transferred.
(4)In this section, “security” means both—
(a)a right in security, and
(b)the correlative right in respect of a cautionary obligation.
Commencement Information
I1S. 16 not in force at Royal Assent, see s. 121(2)