A pledge and assignment in securitatem debiti, known as a security or security assignment, is when the Cedent mortgages or incriminates his personal rights on his debtor and transfers these rights to the assignment (rights surrendered) to ensure the performance of a duty guilty of assignment by the assignor or a related party. A security assignment is generally used to create a security interest for the Cedent`s personality rights for booking debts, money in bank accounts, insurance policies or shares. In many cases, it has been found that a sale in securitatem debiti was legally a pawn of tangible property. As noted above, the SCA has established that a transfer is a bilateral legal act by which the Cedent transfers its rights to the members of the assignment. No formality is required for the agreement of commitment or the deed of surrender itself, although the parties may agree on formalities to which the assignment must be completed. The assignment may be express or implied or may be deducted from the conduct of the parties. While the assignment does not need to be reduced to the letter, the parties may agree that it must be written, but it is only valid if it is reduced to the letter. The SCA reviewed the deed of assignment to determine the intentions of the parties. It is a principle of treaty interpretation whereby words must assign their meaning within the framework of the agreement and apply to the purpose to which they relate. The parties to the SCA intended that the bank, by signing the transfer decision, would transfer the right to misconduct to LA DG Brews. The SCA criticized the court`s approach, which treated DG Brews as a surety, and criticized the fact that it did not distinguish between the transfer agreement and the assignment itself.
If the client . B is in default with the secured debt by not paying the credit, the assignee has the right, on that date, but not before, to realize his guarantee by exercising his recourse to recover the main debt and use the proceeds to settle the secured debt. Whether the underwriter can do so with the debt guaranteed before the debt is delayed is, as noted above, a question of fact that must be determined by the terms of the commitment agreement. This clause gives practitioners broad powers and, in most cases, would allow the practitioner to suspend a company`s payment obligations as part of an facilitation agreement. It should be noted that the practitioner can only suspend obligations and not the entire contract. It is taken into account that contracts are generally a set of rights and obligations. What the law does not say is that the practitioner has the power to suspend the rights of third parties. The transfer of accounting debts confers on the bank (more generally at the transfer) rights without corresponding obligation of the Cedents. Retmil Financial Services (Pty) Ltd v Sanlam Life Insurance Company Ltd and others  3 All SA 337 (WCC) was found by the Western Cape High Court (WCC), that a having (a right surrendered in security), such as a pledge (of tangible and safe property) as a paterfamilias bonus (a prudent ordinary person; , his property) with respect to the right surrendered , is required to exercise due diligence with respect to the surrendered right and to protect the interests of the rightful transferor. The WCC found that, if it does not meet these obligations, the Cedent may, depending on the circumstances, have an action for damages against the assignment. In addition, the WCC found that, where it was a substantive issue, not a legal one, it was possible that the transfer creditor could recover the debtor`s principal debt if the lawyer was not late in payment with the secured debt, to answer a question of fact and not of law, referring to the terms of the agreement of commitment.