Comparative Legal Analysis of the Collateral in the Light of the Anglo-Iranian Laws

Depositing a property as collateral of the belonging to debtor in order to guarantee the creditor’s claim has been formed from the very beginning of the establishment on the basis of regulating the economic and social relations of individuals in society. Accordingly, in financial obligations, various types of securities have been established. However, security contracts with the same basic basis gradually prevailed, and taking into consideration the requirements of modern business, legislators adopted different procedures regarding security and it’s instances based on some laws, regulations, and instructions. However, all the different stances of the legislature have always been accompanied by a basis for securing and reassuring the guarantors and facilitating the granting of credits to the production units which deposit collaterals. In the legal systems of many countries such as Iran and the United Kingdom, security contracts are recognized to secure financial obligations; Collaterals that gives the creditor the right of precedence and prosecution in order to enforce an objective right over the pledger's assets. In this study, we seek to answer the question that, considering the differences and commonalities in Iranian and British law, how the legal nature of the institution of collateral is included in the framework of legal arrangements. In this regard, it seems necessary to recognize the legal establishment of "collateral" as a new face of collateral contracts, regardless of the difficulties of civil collaterals. By accepting the mentioned theory, the provisions of civil pledging contracts are applicable in cases of silence insofar as they do not contradict the basic elements of commercial collateral accepted by special laws.