Consider the following characteristics of a form of real
security?
It arises by agreement followed by registration
It must be registered by the Register of Deeds
It is a means of creating real security over movable
property
Which one of the following forms of real security has the
above characteristics?
1. Notarial Bond
2. Pledge
3. Mortgage Bond
4, Lien
The correct answer is 2. Pledge
The form of real security that has the above characteristics is the Pledge.
To determine which form of real security has the above characteristics, let's break down each option and see if it matches the given characteristics.
1. Notarial Bond: A notarial bond is a type of agreement between a borrower and a lender, and it typically involves an obligation to repay a debt. However, it does not require registration by the Register of Deeds, so it does not align with the second characteristic. Therefore, the Notarial Bond is not the correct option.
2. Pledge: A pledge is a type of real security that involves the borrower giving an asset as collateral to the lender to secure a loan. While it involves an agreement and registration by the Register of Deeds, it is specifically for movable property (such as jewelry, vehicles, etc.), which aligns with the third characteristic. Therefore, the Pledge could be the correct option.
3. Mortgage Bond: A mortgage bond is a form of real security typically used for immovable property (such as land or buildings). It involves an agreement and registration by the Register of Deeds, but it does not pertain to movable property, so it does not align with the third characteristic. Therefore, the Mortgage Bond is not the correct option.
4. Lien: A lien is a legal claim on someone's property to secure the payment of a debt or obligation. While it involves an agreement, it does not necessarily require registration by the Register of Deeds. Additionally, a lien does not specifically relate to creating real security over movable property, as it can also apply to immovable property. So, the Lien does not have all the characteristics mentioned.
Based on the given characteristics, the correct option would be:
2. Pledge