The relationship between usufruct and security interest

Mondo Education Updated on 2024-02-07

Usufructuary rights and security rights are two different forms of property rights in property law, and they differ in terms of the content, nature and duration of the rights. The specific analysis is as follows:

1.*Content of rights**: The usufructuary right is based on the use value of the subject matter, and the right holder can use and benefit from the object, such as the right to contract and operate land, the right to use construction land, etc. On the other hand, the security interest is based on the exchange value of the subject matter and the priority of repayment, and the right holder does not directly use the subject matter, but has the right to be repaid in priority for the subject matter when the debt is not performed, such as mortgage rights, pledge rights and lien rights.

2.*Nature of right**: The usufructuary right is independent and is the main right, which directly gives the right holder the right to control the thing. A security interest is subordinate and an ancillary right to the claim, and its existence depends on the existence of the principal claim.

3.*Duration**: The usufructuary right usually has a definite duration period, and once the property relationship is dissolved, the right will also be extinguished. A security interest is usually linked to the duration of the principal claim, and terminates when the principal claim is satisfied.

In summary, although both usufructuary rights and security interests belong to the category of property rights, usufruct rights focus on the use and income of things, while security interests focus on being a means of security of claims.

The nature and function of the two are different in law, but they are both aimed at better adjusting and regulating the use and circulation of goods, and protecting the legitimate rights and interests of right holders.

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