The registration of a mortgage bond over the immovable property of the debtor (“mortgagor”), in favour of the creditor (“mortgagee”), is a common example of granting security.
A lesser known form of security is the notarial bond, which functions in a similar way to mortgage bonds but is registered over the movable property of the mortgagor.
Notarial bonds are often misunderstood and thus remain under-utilised in general commercial practice. Below are the various types of Notarial Bonds that we at Mnguni Attorneys are able to efficiently assist you to register.
A notarial bond is a bond attested by a notary public, hypothecating all the movable assets or a specific asset of the debtor, and is registered in the Deeds Office by the registrar of deeds in a manner similar to mortgage bonds.
The security which forms the subject matter under the notarial bond must be movable, either in the form of corporeal or incorporeal movable property. This movable property may be any property with a certain valuable aspect to be attached to it.
DIFFERENT TYPES OF NOTARIAL BONDS
Ordinary notarial bond
An ordinary notarial bond is used to secure the debtor’s existing obligations in terms of, for example, goods sold and delivered or services rendered.
Notarial covering bond
A “covering bond” is a bond that are to secure present/existing or future obligation or present/existing as well as future obligations The difference between an ordinary notarial bond and a covering bond is that, whereas the latter provides for both current and future debts and former provides only for present debts.
Notarial surety bond
The surety provides security for the debt or obligation of someone else.
Notarial indemnity bond
A notarial indemnity bond is a type of surety bond, however, unlike a notarial surety bond, the obligation is a primary and not a secondary one.
Notarial debenture bond
A company grants a notarial debenture bond as security for debentures that are issued by the company. This notarial bond seeks to secure the obligations of a company towards the holders of debentures.
At Mnguni attorneys we are able to help you register any Notarial Bond.
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