GROUP III

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SECURITY
Securities are investment
that allows you to own
things without physically
holding onto them.
In Finance, a security is a financial instrument that represents:

An ownership position (Stock)

A creditor relationship (bond)

.

Or rights to ownership as
represented by an option.
Security are typically
divided into, Debt and
Equity
A Debt Security represent money
that is borrowed and must be
rapid such as government and
corporate bonds.

A Equity Security represent

ownership interest held by
shareholders in a corporation,
such as a stock.
 Why Security Should Be Taken
1 2 3 4 5

It has It can be a
It requires various It earns It preserves savings vehicle
for medium
little capital types that income and build and long term
suit you your wealth goal
 Draw a personal financial
1
When Security
roadmap
Should Be Taken
Evaluate your comfort
zone in taking on risk 2
Consider an
appropriate mix of
investments
3

Be careful is investing
heavily in share of 4
employer’s stock or any
individual stock

Create and maintain an

emergency fund 5
Attributes of Good Security
Attributes of Good Security: Legal and Economic Aspects

Attributes of Good Security

Legal  Economic
Aspects aspects
Ascertainment Marketability
of title
Easy ascertainment of value
Validity of title
Stability of price
Easy storability
Durability
Transportability
Cost- consideration
Absence of contingent liability

Yield
 Security
Discount factors
 Security Discount
Factors
In financial modeling, a discount
factor is a decimal number multiplied
by a cash flow value to discount it
back to its present value. The factor
increases over time (meaning the
decimal value gets smaller) as the
effect of compounding the discount
rate builds over time.
Advantages of security of title to goods
An advance against the pledge of
documents of title to goods is tantamount
to the pledge of the goods themselves.

If the goods and products The person who

advanced against are possesses the
necessaries of life, their document can
prices in normal times are transfer the goods to
not liable to wide any person
fluctuations as they have a by endorsement
worldwide market. and /or delivery.
Advances for a seasonal The instruments are
and short period: The easily transferable
banker is lending funds although they are
against them has not to only quasi-
lock up his money for a negotiable.
considerable length of
time.
Disadvantages of security of title to goods

Not Unpaid Obtaining

Possibility of negotiable vendors delivery on
Frauds documents rights of the basis of
stoppage in indemnity
transit bond
Types of Security and
their Discount Value
Equity securities
Equity almost always refers to stocks and
a share of ownership in a company (which is
possessed by the shareholder). Equity securities
usually generate regular earnings for shareholders
in the form of dividends. An equity security does,
however, rise and fall in value in accord with the
financial markets and the company’s fortunes.
.
Debt securities differ from equity securities in an
important way; they involve borrowed money and
the selling of a security. They are issued by an
individual, company, or government and sold to
another party for a certain amount, with a promise
of repayment plus interest. They include a fixed
amount (that must be repaid), a specified rate of
interest, and a maturity date (the date when the
total amount of the security must be paid by).

Bonds, bank notes (or promissory notes), and Treasury notes are
all examples of debt securities. They all are agreements made
between two parties for an amount to be borrowed and paid back
– with interest – at a previously-established time.

The bond discount is the difference by which a

bond's market price is lower than its face value.
For example, a bond with a par value of $1,000
that is trading at $980 has a bond discount of $20.
LAW ON
PROPERTY
 Section 2. Declaration of Policy. -It is the policy
of the State to promote economic activity by
increasing access to least cost credit, particularly
for micro, small, and medium enterprises
(MSMEs), by establishing a unified and modern
legal framework for securing obligations with
personal property.
Scope of the Act.— This Act shall apply to all
transactions of any form that secure an
obligation with movable collateral, except
interests in aircrafts subject to Republic Act No.
9497, or the "Civil Aviation Authority Act of
2008", and interests in ships subject to
Presidential Decree No. 1521, or the "Ship
Mortgage Decree of 1978".

REPUBLIC ACT No. 11057 –

"Personal Property Security Act".
• PPSA was signed into a law on August 17, 2018
Personal Property
 Tangible property
 Incorporeal rights
 Negotiable instruments/title
 Deposits
 Equipment
 Intellectual property
 Livestock
 TERMINOLOGIES
(1) The person who grants a security interest in collateral
to secure its own obligation or that of another person
Grantor
A security interest in goods taken by the seller to secure
the price or by a person who gives value to enable the
.
Purchase money security interest  grantor to acquire the goods to the extent that the credit is
used for that purpose
The centralized and nationwide electronic registry
. established in the Land Registration Authority (LRA)
Registry  where notice of a security interest and a lien in personal
property may be registered
A property right in collateral that secures payment or
Security interest 
other performance of an obligation
A security agreement must be contained in a written
Security Agreement contract signed by the parties. It may consist of one or
more writings that, taken together, establish the intent of
the parties to create a security interest.
Security over Land
and Property
Lending secured on land remains an
important part of their business for many
lenders, whether they are providing
commercial, investment or development
finance, or lending to homebuyers. This
briefing paper provides an overview of
taking security over land in England and Wales.
It is not intended to be comprehensive, and the
focus is oncommercial and investment property.
 Charge by way of
legal mortgage Mortgages by
Land Registry issues
A lender will usually trustees or nominees
take security in the Equitable mortgages
The mortgage may be
form of a “charge and charges Practice varies, but if it
a relatively short
by way of legal is known that the
document and
mortgage”. This is a If there is an registered owner holds
incorporate a set of
form of security agreement to create a it as a bare trustee or n
standard terms by
created by statute, land legal mortgage, or the nominee, the beneficial
reference. More
being one of the very borrower itself only owner is likely to be
commonly in the case
few types of asset has a beneficial joined as a party in
of commercial
where a charge can be interest in the land order to mortgage its
property, it will set out
legal rather than rather than the legal beneficial interest in
the terms in full. Use
equitable. If the title, the lender can the land, and to avoid
of the Land Registry
borrower is a company only have an equitable any possible claim that
form for a mortgage
the mortgage may be mortgage or charge. the mortgage
(CH1) is not, at
contained in a constituted a breach of
present, compulsory.
debenture, as trust.
considered further
below.
Security over part of the land
If the mortgage is over part only of an
area of land, it should make provision
so that, on a disposal on enforcement,
appropriate rights are taken over or
reserved against the land falling outside
the mortgage.
01
Fixtures and chattels
A mortgage of land includes all fixtures
annexed to the
land, other than trade fixtures installed by a
tenant under a lease granted while the
borrower is in possession (i.e. before the
lender has taken possession on enforcement).
Mortgage or debenture – the security
package
Whether, in the case of a corporate borrower,
a lender takes a legal mortgage over land, or
a debenture over all assets, is partly a
commercial matter, but a number of issues
are worth mentioning.
Assignment of rent
It is common for lenders to insist on an
express assignment or charge over rental
income from the property, either in the
mortgage itself, or in a separate document.
 England and
Wales-mortgage
Deeds
 DEED
The United Kingdom, England and Wales operate a
property register. Title deeds are documents showing
ownership as well as rights, obligations, or mortgages on
the property. Since around 2000, compulsory registration
has been required for all properties mortgaged or
transferred.
In common law, a deed (anciently "an evidence") is any
legal instrument in writing which passes, affirms or
confirms an interest, right, or property and that is signed,
attested, delivered, and in some jurisdictions, sealed. It is
commonly associated with transferring (conveyancing) title
to property. The deed has a greater presumption of validity
and is less rebuttable than an instrument signed by the party
to the deed. A deed can be unilateral or bilateral. Deeds
include conveyances, commissions, licenses, patents,
diplomas, and conditionally powers of attorney if executed
as deeds. The deed is the modern descendant of the
medieval charter, and delivery is thought to symbolically
replace the ancient ceremony of livery of seisin.
01 Mortgage
A loan to buy a property that is secured by a mortgage
over a property.

02 Mortgage deed
The legal document giving the lender security over the
property in return for the lender providing the mortgage
loan.
Characterized by a reference number, unique to the
lender, the Mortgage Deed, is the formal Deed which,
when purchasing a property with the assistance of a
mortgage,PowerPoint
or indeed re-mortgaging
Presentation a property, the buyer
is to sign to confirm agreement to the terms set out
within the Mortgage Offer, that has been supplied to
them by the bank.
If the property is in England, Wales or Northern Ireland,
the document is described as a "mortgage deed". If the
property is in Scotland, it is described as a "standard
security".
 03 Mortgage offer
The letter from a lender offering a client a
mortgage loan and setting out the conditions
upon which it is offered.

THINGS TO CONSIDER IN SIGNING A

MORTGAGE DEED

• Are the details noted on the Deed accurate

and correct?
• Do I have a suitable witness?
• Have I reviewed, and agree with, the terms
of the Mortgage Offer?
MORTGAGE DEED DOCUMENT
MORTGAGE DEED DOCUMENT
Scotland Standard Securities
What is a Standard Security?
A security is a legal documents that result from
putting land or property up for security against a
loan. Although security deeds may include
personal loan agreements and personal
guarantees a Standard Security is the only form
of fixed security over heritable property in
Scotland
 Insurance
3 3

2 2

1 START 1
 Insurance linked securities, or ILS, are essentially
financial instruments which are sold to investors and
whose value is affected by an insured loss event. The
term insurance-linked security (ILS) encompasses the
ILS asset class, which consists of catastrophe bonds,
collateralized reinsurance instruments and other forms
of risk-linked securitization
insurance linked securities2, or ILS, are essentially
financial instruments which are sold to investors and
whose value is affected by an insured loss event. ...
START 1 They allow insurance and reinsurance carriers to
transfer risk to the capital markets and raise capital or
capacity.
 Postponed
Mortgage Deeds
 Postponed Mortgage Deeds
The term is sometimes used where the person
agreeing to postpone is not a lender but has
some other potential interest which a lender
demands must be expressly agreed as
postponed behind that lender’s interest.

Normally the Deed will provide that any

payments are used first to pay off the debt .

owed to the senior creditor and then to pay off

the debt owed to the junior creditor. Both the
debts are secured and include amounts due
under the loan agreements. In effect the
Senior Creditor has security over all the assets
subject to security created by the junior
security documents.
 
 Postponed Mortgage Deeds
In relation to enforcement a Senior Creditor may
typically have rights in a deed of postponement to
control enforcement action without the Junior
Creditors consent including provisions so that the
junior creditor may not enforce without the prior
written consent of the Senior Creditor.

The Senior Creditor’s lawyers normally draft .

the Deed of Postponement which will be
negotiated between the Senior Creditor and the
Junior Creditors’ lawyers but the debtor will
not be involved in negotiating such document.
 Our Group

01 02 03 04

Ramos, E Sualog Tarrayo Ramos H.

 Our Group

05 06 07 08

Andrade, K. Guibay Sisno Saplan

 Our Group

09 10 03 04

Villanueza Andrade, E. Jenny Morales

Professor
Thank you