Assignments by way of security over intangibles: are they legal statutory or equitable and does it matter?

Assignments by way of security are a type of mortgage. They involve a transfer of rights by the assignor to the assignee subject to an obligation to retransfer those rights back to the assignor upon the discharge of the obligations which have been secured.Note that assignments by way of security should not be confused with “assignments by way of charge” which constitute a charge ie an encumbrance over an asset rather than a transfer of title to an asset.

Legal statutory or equitable?

Intangibles such as debts and contractual rights are a chose in action (or a “thing in action”). As a basic principle choses in action cannot be assigned at common law because common law does not recognise that choses in action can be...