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 debentures
 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 conveyance
 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