BUSINESS SECURITIES

Sun (Auckland), Volume IV, Issue 1026, 17 July 1930, Page 7

BUSINESS SECURITIES

CREDIT CLUB ADDRESS LAW GOVERNING LIENS “The growth of credit has been made necessai'y by the growth of modern business and the necessity of offering better competitive terms for the increase and expansion of trade.” So said Mr. W. H. Cocker, 8.A., LL.B., during the course of an address on “Business Securities,” at the Auckland Creditmen's Club luncheon at the Lewis Eady Hall yesterday. Mr. Cocker reviewed various forms of credit, paying special attention to the law governing liens. In outlining the forms which were not actual securities, the speaker touched on guarantees, chattel securities, promissory notes and assignments, including the assignment of mortgage moneys. These could all be upset by liens, which were securities in the proper sense. Mr. Cocker then touched upon securities proper, which ■were divided into four sections, mortgages, bills of sale, hire-purchase agreementi and liens. Liens were different from all existing forms of securities inasmuch as they were not affected by any agreement between parties, but were a provision of tli© law for protection of the individual for work done. The common law lien, which was an ancient form, gave power to persons to lien upon any chattels upon which work had been done, until the cost of the work had been paid. In New Zealand, after a certain period, the chattels could be sold to recover the amount owing if proper notice were given.

The unpaid seller of goods lien, the second form, stated that a seller might retain goods under agreement of purchase until the purchase money was paid, and in the event of the purchaser becoming insolvent might recover and hold the goods while they were in transit. In conclusion, Mr. Cocker dealt with the worker’s contract lien, which gave workmen a primary claim for wages in the event of insolvency of employers.

At the conclusion of his address the speaker was accorded a vote of thanks.