Securing the Bag – A Guide to English Law Security Interests in Structured Finance

When it comes to structured finance, one thing matters almost as much as the assets themselves: making sure they’re safely set aside and can’t be claimed by someone else if the borrower goes under. That’s where the security package comes in – not bouncers at the door kind, but a set of legal tools designed to keep those assets protected and ready to be enforced if things go wrong.

Whether it’s a securitisation, a repackaging programme, or a collateralised lending structure, investors want reassurance that the assets backing the deal won’t disappear into a black hole at the first sign of trouble. Luckily, English law, offers a lovely array of security interests to choose from – each with its own rules, quirks and paperwork rituals.

In this article, we’ll walk through the structured finance favourites: fixed and floating charges, mortgages (legal and otherwise), pledges, liens, and – cue the dramatic music – perfection (yes, we’ll explain what that means too).