, pub-6663105814926378, DIRECT, f08c47fec0942fa0 The 10 Types of Credit Securities and their Characteristics 4289

Search This Blog

The 10 Types of Credit Securities and their Characteristics

The types of credit instruments are payment or commercial, representative of merchandise, social participation or securities, bearer, to order, registered, public securities, private credits, not caused and caused or abstract.

Credit titles are documents that empower their holder to exercise the literal right that is set forth therein. Cesare Vivante defines them as "documents that have incorporated a literal and autonomous right that can be exercised by the legitimate bearer against the debtor on the expiration date".

Like any financial title, it generates a private patrimonial right and, therefore, implies the ownership of an asset. It is a term used in finance to designate a physical document or a book entry.

The credit or security instrument is a debt instrument that could be a government bond, a corporate bond, a certificate of deposit or a preferred stock.

It is a document that can be bought or sold between two parties and has defined basic terms: amount loaned, interest rate, guaranteed values, and expiration and renewal date.

In legal terms, it is a constitutive document, that is, without them there is no right that they imply. They replace, in commercial law, bills of exchange and delegations.

Its origin is related to the edition of the Commercial Law Treaty , in 1896, by the Italian professor Cesare Vivante. In this treatise a General Theory of Credit Securities appears.

Classification of the types of credit instruments
There are several ways to classify these financial instruments and some of them are detailed below.

- According to its content
Payment titles or commercial papers
It refers precisely to the titles that indicate the obligation to pay a specific sum of money, such as: bills of exchange, promissory notes, checks, letters of credit orders and drafts.

Representative titles of merchandise
They are those titles in which the ownership of movable property is transmitted or transferred, in particular merchandise.

They can be: transport contracts such as the bill of lading, the bill of lading or the air waybill or air waybill; or storage contracts or deposit warrants, such as certificates or deposit vouchers.

Social participation titles or transferable securities
One can also speak of social participation titles when they indicate rights such as the quality of partner of the issuer or creditor indicated in the document.

An example of this type of securities is the action of a limited company are the bonds, debentures or promissory notes issued by private limited companies.

- According to the person to whom it is ordered
Bearer securities
It refers to the titles that, effectively, are paid to whoever presents them for payment.

Titles to order
They are the titles issued in the name of a particular person who may or may not transfer them by endorsement.

Nominative titles
The titles that are issued in the name of a person who cannot transfer them by endorsement.

- According to the legal personality of the issuer
Public securities
This classification includes the titles issued by the State or entities that are related to it.

Private credit titles
They are the titles issued by individuals. And they can be of a civil or commercial nature depending on the legal relationship that originates them.

- Depending on how the document is divided or not
Unit titles (a check, for example) and multiple titles (bonds or titles representing public debt).

- According to whether they are caused or not caused
Not caused or abstract
Like the bill of exchange, the promissory note and the check.

All titles directly linked to the legal relationship that originates them, such as bills of lading or warehousing contracts, for example.

Characteristics of the credit instruments
Some of the characteristics that distinguish credit instruments from other financial and debt instruments are:

The conditions are respected as they are expressed in the document.

In this way, neither the debtor nor the creditor can demand or receive anything that is not explicitly stated on the paper.

This characteristic is inspired by the "bunk contracts" of Roman law.

This characteristic is due to the fact that each new owner acquires it originally. That is, he is not the successor of the subject who transferred the credit title to him.

In this way, the new holder exercises his own right, different and independent from those of the previous holders of the title.

This means that when a credit title changes hands, owners, the credit right expires and a new one is born.

Thus, vices or defects do not accumulate during the circulation of the document, which is what happened with bills of exchange.

It does not mean anything else but that to exercise the right indicated in the title, its possession, exhibition or delivery is mandatory.

This characteristic originates the term cartular, with which the rights emanating from the securities and the legal norms that regulate them are named.

Legitimacy for possession
Whoever owns the title can legitimately exercise the right that it provides.

It is a characteristic that is due to the fact that, legally, the cause of the debt is not relevant, but the obligation to pay what the document stipulates.

This does not mean that there is no prior negotiation that originates the document, but it does mean that when asserting the right to collect the debt, such negotiation will not be taken into account, but what the title indicates.

Ultimately, the principle of the unenforceability of exceptions is present, according to which the debtor may not file exceptions originated in the business that caused the title.

The fact that it is a written document that implies literal obligations, gives it a formal character. Such is the case of bills of exchange, promissory note and check.

Advantages of credit instruments
Credit instruments as financial instruments allow the mobilization and circulation of wealth but also have other advantages:

Certainty in the conditions because they imply the obligation to comply with the conditions they reflect.
Speed in the processing of the operation.
Security in the final execution of the title.

Annuities Meaning

Finding Travel Insurance For Cancer Diagnosis

How Does the Stock Market Work

Top 10 Ways to Make Money Online

10 Legit Ways to Make Money and Passive Income Online

10 Ways To Cut Your Health Care Costs

The Ultimate Assurance of Buy-sell Agreements

5 Tips to Prepare for Your Property Settlement

8 Habits of Wealthy and Successful People

Why Millennials Choose to Buy Home

7 Tips Every Homeowner Need to Know About Insurance

8 Tip on Homeownner Insurance

10 Question You Should Ask Mortgage Lenders

How Much is My Car Accident Settlement Worth

200 Business Movement News

150 Financial Tip You Should Know

Essential List of Mortgage Application Document

Prepare Yourself Before Investing in Stock

Shopping is the Right Way Without Debt

Factors Affecting Home Loan Rates

Using Credit Cards With No Debt

Plan for Business Loans

Step Before Buying Insurance

Choosing Life Insurance

How to Get Cheap Car Insurance

If in Debt With a Credit Card

Type of Insurance

How to Request a Claim

Deposit With Banks or Take Out Insurance

Why Do We Need Life Insurance

Insure Assets and Liabilities How is It Different

Contract for Buying a House

Happy if in Debt

Can Not Pay the Car Installments

16 Most Important Car Insurance Terms

Want to Use Urgent Money Where Should I Request a Loan

Save Money in Stocks

How to Have a Home

Plan Before Retirement

Plan for Repayment Carefully

50 Financial Movement You Should Know

How You Can Hit the Heights While Plunging to the Depths

10 Ways to Cut Your Health Care Costs

Tips for Handling an Employee's Departure

How to Get Your Product Onto Retailers' Shelves

A List of Pointers for Low-cost Promotion

A Field Guide to Office Colleagues

How to Get Your Tqm Training on Track

4 Excuses to Use Unconscious Credit Cards

Be Careful Terms of Insurance Agreement

Changing a Home to Pay Off Debt

Want Money to Invest

Credit Card Addiction Symptoms

How to Manage Credit Card Debt if Lose Job

What is Private Fund

Loans for Education

10 Things That Lead to Poverty

Do Not Overlook Insurance

There Are Also Saving on Debt

10 Things You Need to Do Before Retiring

Seed Funds for the Smallest Start-ups

Health Insurance Managed Care Can Cost More

States Go for Bold Changes

Outside Directors: How They Help You

Helping Your Children Plan for a Distant Future

The Tax Advantages of a Home Office

Job Skills Have Declined Firms Say

American Get More for Their Money

Boost Your Problem-solving Power

Finding the Essence of Good Sales People

Suggestions on Selling Your Service Firm

Warming to the Idea of Customer Feedback

It's Timely to Consider Still Another Inequality

More Tax Cuts Coming

Vice Presiddency Becoming More Attractive Goal

Turn Anger Into an Asset

Making the Most of Trade Shows

Ideas for Making the Most of Time on the Road

The Benefits of Smart Inventory Management

Policies That Protect a Company's Good Name

Market-neutral Funds May Offer Solace if Stocks Tank

Bargains in Business Insurance

Bills Would Affect the Hiring of Skilled Foreign Workers

The Ups and Downs of a Postal Rate Proposal

Locking on to Teamwork

Nurturing Part Timers to Be Entrepreneurs

Holding Things Together When Selling A Location

Knowing When Cut The Cord

A New Selling Approach Makes Fashion Sense

Too Much Team Harmony Can Signal Trouble

Oiling The Wheels Of Consumer Satisfaction

Networking 101: Seeing And Being Seen

Nuts About Snack Food

A Jet-Powered Takeoff

Grooming For Success

Switching to Self Insurance

Promoting A World Ethical Standard

Help Wanted Desperately

How to Get a Yes From Your Banker

Lawmakers Have Their Work Cut Out For Them

Making The Climb Onto Store Shelves

Hammering Home Performance Incentives

Have You Seen Your Banker For Your Annual Checkup

Protect Your Company's Proprietary Information

Adding Some Byte To Retirement Plans

From The Ground Up

Pluses And Pitfalls In Voice Mail

Lawmakers Have Their Work Cut Out For Them

Making The Climb Onto Store Shelves

Market Bulls Battle A Case Of Nerves

Check The Fine Print In Picking A 401 (k) Plan

5 Pitfalls Make Your Work Inefficient

Wrong Stock Investing

What is a non life insurance

5 things to do if you want to succeed

5 steps Emphasize the use of credit cards correctly

Unemployment can be saved by doing 5 steps

Obstacles that prevent from saving

Want to be rich do these 3 things

New to the stock market

Change the attitude of saving with 3 steps

Home loan Not difficult anymore

Start investing is not difficult

Come check the finance health

Live 3 items for solving the poor

5 wrong financial views Risking destruction

4 things that should not be overlooked for Save money

Wise financial planning techniques for the family

5 mistakes checklist when buying insurance

5 reduce the risk of doing business

3 risk levels that must be known before investing

Advantages and disadvantages of Requesting a loan

Saving The US Economy

What price loyalty at Vodafone

Alphabet soup and economic recovery

Our growing nostalgia for commuting

Financial alchemy

Personal credit

4 principles of financial success

Buying housing is not a big deal anymore

Essential insurance

How to teach your child to be wise With the use of money

6 Collection techniques That a salary man needs to do

How to choose a credit card that best suits your needs

Beware The Scammers out to empty your bank account

Avoid The Traps Set By Estate Agents

10 Ways To Cut Your Health Care Costs

What is the stock market

Adjust the idea of adding value to your business

How ready are you for down

10 techniques to use money

10 Ideas To Conquer Stocks

10 Year Retirement Plan

Factors That Make Your Finances Worse

Eliminate 5 Weaknesses to Create Success in SME

Retirement Investment Plan Longevity Simpler

5 Secrets to Financial Freedom

How to Invest Without Losing

Do We Need Too Much Money

8 Alarms When Finances Are in Trouble

How to Use Money Saving Techniques

Credit Card Debts Not Difficult Anymore

No comments:

Post a Comment

Popular Posts