The concept of real security within the ambit of modern legal and commercial practice has its origins in the need for additional and effective protection of a creditor's right to recover his claim from a debtor. Although this concept has developed somewhat over the years along with evolving commercial practice and circumstances, nevertheless there exists an urgent need to develop and refine a practical and effective system of security for creditors with regard to moveable property. This investigation will focus mainly on competitive real rights with regard to the proceeds of the sale of encumbered property, their order of priority inter se and their preference over the claims of unsecured creditors. Note has been taken of recent court decisions, including Land- en Landboubank van Suid-Afrika v Cogmanskfoof Besproeiingsraad, Cooper v Die Meester en Lubbe v Volkskas Bpk as also recent legislation such as the Security by Means of Movable Property Act.

MLL (Boedelreg), North-West University, Potchefstroom Campus