SCOTTISH COMPANIES 
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17 
any further than is the case with the holders of ordinary 
naked debentures. 
As to (2), debentures secured over moveable or personal Security over 
property, either by delivery or transfer to the actual lenders Moveable 
or trustees for their behoof, these are, if shipping property Property. 
be excepted, of comparatively rare occurrence. Many 
debentures are, however, effectively charged over ships by 
mortgage, or by transfer of the vessels themselves, or in some 
cases, of the shares of the limited companies owning them, 
to the lenders or trustees on their account. In the former 
case the mortgage or bill of sale must be recorded on the 
ship’s register, and in the latter a transfer of the shares must 
be registered by the company. In such cases the trust deed 
usually makes provision for the changing of the security 
according to the exigencies of business, but so that the value 
will always be maintained. There are other cases of deben- 
tures in which shares or stocks of ordinary limited companies 
are impledged in security, but as already indicated, these are 
of comparatively rare occurrence. 
As to (3), debentures secured over heritage, the system of Security over 
land registration in Scotland lends itself very readily to the Heritage. 
creation of effective securities over land and buildings by 
mortgage debentures, the registration of the necessary deed 
in the Register of Sasines, assuming its validity on other 
grounds, creating a preference in favour of the grantees. 
This security is usually created by an ex facie absolute con- 
veyance to trustees for the debenture holders; on registration 
of which these trustees, subject to the provisions of the 
separate deed of trust, become vested in the property as if 
they were absolute owners. Under the deed of trust provision 
is made for the administration of the trust, the use by the 
company of the subjects conveyed so long as there is no 
default, the enforcement of the debenture holders’ rights 
in case of default, etc., and as a rule the trustees are entitled, 
though not bound, to satisfy themselves that the security 
subjects are being duly maintained and kept insured against 
loss by fire. The deed of trust, as a matter of fact, runs 
largely on the lines of similar deeds by English companies 
securing mortgage debentures over property there. (See 
Chapter XVIII.) 
It may be worth noticing that certain leases which, in the Long Leases. 
ordinary case, could not be effectively charged, may be made 
the subject of a good security. By the Registration § Long 
Leases Act of 1857 it was made lawful to record in the 
Register of Sasines any lease of heritage in Scotland for a 
period of thirty-one vears or upwards, and any assignations