Fiduciary cession of rights is a type of insurance of obligations. It has developed from a practical use and was later implemented into legislation of many countries. Debt is transferred into security by cession, which is a way of transferring claims. Unlike pledging right of a claim, transferring debt into security is a fiduciary insurance, where creditor obtains more legal authority over the object of insurance than it is necessary. That gives him a more favorable position, as opposed to debtor, who is at greater risk. Because of this imbalance, legislation regulated cases of insolvency of fiducar and fiduciary. The fiduciary's legal position is similar to a position of a creditor with the right to separate settlement, while fiduciar's is close to an owner's. In addition of transferring already existing debts into security, one can also transfers future debts. Anticipatory transfer of debts into security has a key role in factoring without recourse, in global fiduciary cession and in extended reservation of property rights. German theory takes a view, that due to various purposes of the institutes, it is necessary to have a modified rules of order.
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