In Scottish law, this term signifies the creditor’s discretion. It pertains to the creditor’s entitlement to determine which debt a payment should be applied to. If a debtor makes a payment without indicating the specific debt it is intended for, the creditor has the authority to allocate it to any debt. However, if the debtor designates a particular debt for the payment, the creditor is obligated to apply it to that specific debt.
Electio est creditoris is a Latin term utilised in Scots law to indicate that the creditor possesses the power of choice. This concept pertains to the creditor’s ability to determine which debt to allocate payments towards. For instance, if a debtor owes money for two separate debts and makes a payment without specifying the intended debt, the creditor has the authority to decide which debt the payment should be applied to. The creditor may opt to allocate the payment to the debt that is less secured or carries the highest interest rate. However, if the debtor specifies the intended debt, the creditor is obligated to apply the payment accordingly. These examples exemplify the meaning of electio est creditoris by highlighting the creditor’s right to choose the debt to which payments are applied. When the debtor fails to specify the intended debt, the creditor retains the discretion to allocate the payment. This grants the creditor greater control over the payment process and enables them to prioritize their debts. Conversely, if the debtor designates the intended debt, the creditor must allocate the payment accordingly, granting the debtor more control over the payment process.
Electio Est Creditoris is a legal principle that allows a creditor to choose which security or collateral they want to enforce in order to satisfy a debt owed to them.
Under Electio Est Creditoris, the creditor has the right to select which security or collateral they want to enforce. Once the choice is made, the creditor cannot change their decision.
No, Electio Est Creditoris only allows the creditor to enforce one security or collateral. Once the choice is made, the other securities become unavailable for enforcement.
In certain circumstances, a debtor may be able to challenge the creditor’s choice if it can be proven that the creditor acted in bad faith or unfairly in making their selection.
If the creditor fails to make a choice within a reasonable time, the debtor may have the right to select which security or collateral will be enforced.
Electio Est Creditoris generally applies to secured debts where the creditor has multiple securities or collaterals to choose from. It may not apply to unsecured debts.
No, once the creditor has made their choice, they cannot change it. The principle of Electio Est Creditoris prevents the creditor from altering their decision.
There may be exceptions to Electio Est Creditoris depending on the specific laws and regulations of a jurisdiction. It is important to consult with a legal professional to understand the applicability of this principle in a particular situation.
Yes, a debtor can request the creditor to make a choice under Electio Est Creditoris if the creditor has not done so within a reasonable time. This can help clarify the enforcement process and protect the debtor’s rights.
After Electio Est Creditoris is applied and the creditor has enforced their chosen security or collateral, the remaining securities or collaterals become available for enforcement by other creditors, if applicable.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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