The object of this course is to examine the law respecting the extension of credit and the arrangement of suitable securities including guarantees and performance bonds. The emphasis is on the law of Singapore, but reference is made, where relevant, to materials from other countries so as to provide a comparison.
The course is divided into three parts. Part I introduces the main regulatory Acts to be reckoned with by an institution engaged in credit extension, and examines the extension of credit by way of overdrafts and term loans. Part II focuses on the substantive law of secured credit. The general concepts relating to taking security over personal property will be analysed, and the operation of these principles in relation to chattels on the one hand and intangible property on the other will be illustrated by the specific topics of company charges; pledges and trust receipts; and the assignment of book debts. Part III deals with third party securities, i.e. guarantees and performance bonds.
The emphasis throughout all three parts is on the commercial effectiveness of the system.