Securities

What is a security.

The securities are necessary documents to legitimize the exercise of the literal and autonomous right that is incorporated in them, they can be of credit, corporate or participation content and of tradition or representative of merchandise.

OTHER CONCEPTS. - From the material point of view, the security is a written document, always signed (unilaterally) by the debtor; it is also a piece of paper that contains various mentions. In the background, the security is defined as a right for the benefit of a person. The right consigned in the document, is born with the creation of this one. It has a value in economic activity in general and in commercial businesses in particular, for this reason and for the development of the economy of a country, it is important that the title as a value in itself, can enter into economic circulation like other goods.

securities-titles

Whoever subscribes a security is obliged to provide a service against the holder of the security, or whoever is such, and does not subordinate that obligation to any acceptance or any consideration.

CONTRACTING

In the daily life of natural or legal persons we are always involved in a contract, if we buy or sell, if we change, if we contract, all the acts of people are professional traders, workers, students, employees etc.

Everything that is done is CONTRACTUAL in nature. In Commerce, Industry, Banking, contracts are signed and contracts are executed.

Contracts are concluded when they are made, they are agreed or written and subscribed to. This act is called entering into contracts.

Contracts are executed, when those of us who write and sign or accept we put them on the move or rather we give them life BY DELIVERING AND RECEIVING Among all these acts that we celebrate and execute are securities such as:

Bill of ExchangePaymentsChecksSavings accounts Installment deposits Letters of credit (Bank surety, Bank guarantee) Certified Bonds (Money, Merchandise or Products.)

And others more

All are documents with which rights and duties are acquired depending on them.

To clarify, there are other rights and duties that are acquired regardless of the document. (Explain) Securities their Concept and Definition They are the necessary documents to exercise the literal right that is consigned in them.

By their characters we can make an analysis of them like this:

As a document, Classes and Requirements By relation of title and the right of incorporation

By legitimation, Concept and Classes, Discrepancy between Property and legitimation. By literality

For its autonomy

1.-) As a document, classes and requirements As documents we divide them into two Publics:

They are those signed by judicial or administrative authorities, such as government bonds.

Private:

They are subscribed between natural or legal persons

The most common are:

The bill of exchange The promissory note The check

There are other uncommon ones like:

Certificates of deposit, cash bonds, savings bonds, capitalization certificates and participation certificates.

2.- List of title and the right of incorporation

Not all documents are titles, Some are only probation documents that fix the content of a declaration of will (to pay)

Title-value relationship is carried only by those in which there is a permanent connection so that only the one who has the document derived from the position of the document can invoke the right.

The incorporation of the right to the document refers to the one that is literally stated in them and that is exercised through the document itself. The holder of a title has the obligation to display it to exercise the right that is set forth in it.

As elements of the contract there are 2 principles

The one with legitimation (Active and Passive)

The One with Literality

Legitimation

If they exist in a promissory note and it has been lost, the right to collection cannot be exercised because it depends on the document.

If there is a person but they have lost their identity or their birth certificate, the right of existence can be exercised regardless of the document. Who has the right to collect the obligation incorporated in the title?

Who has the right to collect the obligation incorporated in the title?

The legal holder.

The legitimate creditor of the consigned obligation is the HOLDER even if it was not the original creditor. This is the principle of legitimation described from the active side, that is, from the person with the right to collect, but legitimation also has a positive aspect

Who must the debtor pay to be released?

It is released only when you pay the legitimate holder of the promissory note.

The legitimation secret is that the holder must be paid

By legitimation, Concept and Classes, Discrepancy between

Ownership and Legitimacy

The legitimation consists of the possibility that the right is exercised by the holder, even when it is not actually the legal owner of the right.

The simple presentation of the document under certain conditions assumes the existence of the right and its ownership as well as the ability to exercise it.

If the titles are bearer, the requirement of presentation corresponds to anyone who presents it to the debtor.

The debtor who pays the bearer is released and the payment is legal, any simple holder has the legitimacy of possession.

Legitimation

If the titles are to order, the exercise of the right corresponds to the person in whose favor it was issued, if there is no endorsement and if there is, to the one who is legitimized by an uninterrupted series of them, so that with the simple proof of the identity of a person with the one designated in the title, the rest is estimated as proven. The legitimizing force is greater in those that are to the bearer than those that are to order. The discrepancy may exist between the ownership of the right and the ownership of the document, that is, with material possession and formal possession.

The principle of literality

What the letter of the document says, the extent of the obligation is measured by what the document consigns to the letter and this is what is called: The principle of literality

Although the obligation is greater and by mistake it is entered less by mistake in number and in letters, it is paid for what is said in letters, when there are two mentions in letters, it is paid for the smaller amount.-

The autonomy

That they are governed or managed by their own laws.

Literality

The security is defined in the law as the necessary document for the exercise of the literal right that is consigned in it.- In other words, both the holder and the legitimate creditor must abide by the literal text of the title.

Literality: What the letter says.

The securities are autonomous because the holder in good faith exercises his own right that cannot be limited or decided by relationships that have mediated between the holder and the previous holders.

The acquirer receives a new non-derivative original right.

Classification of securities Registered securities (in favor of a certain person or registered in books or registered) Securities to order (in favor of a certain person, without registration.) Bearer securities

1.- Registered titles:

They circulate exchange rate for any reason of transmission, including the endorsement that appears in its text and is noted in the registry that the issuer maintains, and they are those that have been drawn up in favor of a certain person, the transmission can be made by: Purchase, sale, donation, inheritances, adjudications, judicial sentence, but this is not enough because it is always necessary to make the registration in the registered books of the debtor or issuer since only the one who appears in the document and in the registry (Bonds and Shares) is recognized as the legitimate holder.

2.- Title to order:

This circulates exchange rate only by simple endorsement, they are always issued to a specific person and there is no registration.

3.- Bearer title

They are those issued in favor of the bearer and can be transmitted by the simple tradition of the document, the name of a specific holder is not indicated.

By the nature of the incorporated rights we have:

Credit Securities

These incorporate a simple right of credit that allows to obtain a benefit of money.

Bill of exchange, check, promissory note

Representative Securities For example, merchandise, are those that incorporate a real right over these, either property or guarantee.

Warehouse Certificates

Participation Securities

They are those that incorporate the complex of rights of the partner or other people who participate in a partnership. The actions

General Securities Problems Capacity

The ability to subscribe with any character (Issue, Transmit, Guarantee, Accept) A security has the one who is able to contract according to the commercial code.

The moment in which the capacity or incapacity must be appreciated is that of the subscription of the title.

Signature

Authenticity and obligatory nature depend on the signature, the signature must be autographed in the subscriber's handwriting, the rest can be written by another person or by typewriter.

When the person who must subscribe does not know or cannot do so, the law provides that another person can do it for him, authenticating it by a notary.

Representation of specialty form

All exchange acts can be done by proxy, authorizing in your name and on your own.

By power of attorney registered in the public registry of commerce with an expressly set limit. It can be done to:

Grant or subscribe titles

Endorse them, accept them, endorse them. It can be signed on behalf of any of the persons who intervene, stating it in the prior signature, the lack of indication would make the signing party be personally bound.

Forgery and alteration of the text The signatories (signers) are responsible according to the terms as follows:

Before a forgery or alteration

For the value that was originally consigned and they can oppose the payment, claiming alteration. And after falsification or alteration by the value in the consigned or by the altered value.

Will problems

If a security title is signed with an impediment error, due to fraud, physical or moral violence, it cannot be treated with the general rules of legal business, since they cannot be enforced against third parties, its literality and legitimacy, and autonomy.

Text modification

The text is established by the issuer, there are titles that the text can be modified, the bill of exchange, the check, the promissory note, which require complementary statements, such as certification, the endorsement, the acceptance, which are supposed to be complementary statements, that they add to the primitive text.

There are securities that do not allow modifications in their text, shares, and bank titles in general.- (Cashier's checks, certificates, capitalization policies, savings books, etc.) Real guarantees

The exchange guarantee of the securities is the guarantee. -0 is that the document is guaranteed to be exchanged for the value or its amount.

The endorsement is also a guarantee given the responsibility of the endorser, who is jointly and severally liable for compliance with exchange obligations.

Mortgages and pledges are also real guarantees, in these cases the guarantee is constituted in accordance with common law in favor of the legitimate owner of the title and this is transmitted to the right with the simple transmission of the title, but the existence of the title must be noted in the text. mortgage

Exchange solidarity

All the signatories of a security are jointly and severally bound, this allows the demand for jump, that is, the creditor holding the title demands the exchange debtor that he deems appropriate without having to follow the order of circulation of the document, the signers jointly are also jointly liable for The duty.

Prescription

Consolidation of a legal situation due to the passage of time, extinction of responsibility for the passage of time.

It is a way of acquiring a right or freeing oneself from an obligation. It is a means of acquiring or losing acquired rights.

There are two kinds of prescription.