3D Garages Ltd v Prolatis Company Ltd

Lending and security – Standard security – Validity and enforceability. Sheriff Court: In an action in which the pursuers appealed against a sheriff's decision refusing to grant declarator that five standard securities were void and unenforceable, the court rejected their arguments that the holder of a standard security must also be the creditor in the obligation secured by it and that a standard security which created a real right in security could only be granted in favour of the creditor in the obligation secured by it , and it agreed with the sheriff 's conclusion that in any event, the respondents were the creditors in the principal obligation and that the debt had been assigned to them.

Category: