Security interests

Security interests reduce credit risk by giving the secured party preferential access to specific assets if the debtor defaults. In Swiss practice, common forms include pledges over movable property or claims, real estate mortgages, retention of title and security assignments, each with its own perfection and publicity requirements. Swiss law is comparatively formal in some areas, for example requiring possession or registration for certain securities. Parties must also consider insolvency effects, priority conflicts and whether the secured asset is transferable.