Security & Collateral · glossary
A right to keep someone else's goods until a debt is paid, which arises by law rather than by agreement. A repairer may keep a machine until its bill is paid. The words “permit to subsist” in clause 6.1 catch a lien too. Debenture §6.1 · Chapter 7
Explained in Chapter 7, The Guarantor, the Group and the Negative Pledge, of Security & Collateral.
Three phrases do the work. "Create" means granting security by agreement, and "other security" catches anything that does the same job under another name. "Permit to subsist" means letting security exist, including security that arises by law. A repairer who has serviced a machine may keep it until paid, which is a lien, and this phrase catches it.Read Chapter 7, The Guarantor, the Group and the Negative Pledge →
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