Report Securities (2016)Pràctica Inglés
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REPORT CASES 7 & 8 – CONTRACTS & SECURITIES
Report by Pablo Díaz A6
The term securities, refers to a number of different commercial papers which hold a common
characteristic: they contain an unilateral declaration of a person who engages to make a
specific delivery in favor of another person who is identified by the legitimate possession of
the document (security).
In other words, a security is a commercial document in which a patrimonial private right is incorporated, so that the exercise of the right is legally bound to the possession of the document.
Its properties and characteristics are: Autonomy: The acquirer of the document acquires the ownership of the rights incorporated in it. It is acquired as “título originario”, this means that the acquirer does not depend on the transferor; the legal position of the acquirer is independent from the one of its transferor. This, makes much easier its circulation, such a way that their legal position is independent of which had its transferor, ie it is acquired original title (it is said to derivative title when the legal position of It depends on the acquirer of the transferor).
Autonomy greatly facilitates the circulation of the title.
Literality: The information mentioned in the security are absolutely decisive in determining the content of the documented right. The right is acquired under the terms stated in the document. The literalness benefit to the right holder leaving it immune to any exceptions that the debtor could oppose.
Legitimating function: Only the security holder can transmit and require documented right.
Classification of securities in the Spanish Regulation: Títulos valores a la orden: are those that are extended for a certain person and can be transmitted to another person through endorsement.
Títulos valores al portador: are those that recognize a right in favor of the indeterminate person holding the document.
Títulos valores nominativos: are those that recognize a right in favor of a particular person.
The most common Securities used in the commercial traffic are: LETRA DE CAMBIO It is a security which is extended by one person (creditor) and collects a payment obligation accepted by another person (debtor) for a given amount on the date of expiration.
In the case of transmission of the “letra de cambio”, using the endorsement, payment must be made to the endorsee (current creditor) but the endorser (original or later creditor) has to answer in front of the endorsee (current creditor) of the financial solvency of the person obligated to pay.
EL CHEQUE It is a security issued by one person (drawer) which contains an order for payment by another (drawee) in favor of the legitimate holder of the document (drawer or third).
The issuance of the check must necessarily be waged against a bank or credit institution that has existing funds available to the drawer.
EL PAGARÉ It is a security containing a commitment to pay an amount determined by a person (signatory) in favor of a particular person (holder).
The signer of the “Pagaré” is obligated in the same way that the acceptor of a “Letra de cambio”.