LLAW6002 Credit and security law

1.1 Course details

Course code: LLAW6002 / JDOC6002
Course name: Credit and Security Law
Programme offered under: LLM Programme / JD Programme
Semester: Second
Prerequisites / Co-requisites: Contract and Equity
Credit point value: 9 credit / 6 credits

1.2 Course description

The legal aspects of supplying and securing credit in respect of consumers and companies; the legal means of taking security over different types of property.

The forms of credit and security are divided into the “real” securities and the “quasi-securities”. The real securities are: charges, mortgages, pledges and common law liens. The quasi-securities include hire-purchase, bills of sale, assignments of the benefit of a chose in action, sales and re-sales, finance leases, retention of title transactions, and many other forms usually involving indirect money lending. All of these forms of security are available to consumers as well as corporate borrowers. For example, a common corporate loan is a charge over book debts, and a common consumer loan transaction is a mortgage over land.

Topics to be studied include:

  • the concept of security,
  • the role of equity in security transactions, for both real and personal securities,
  • types of business finance,
  • insolvency,
  • drafting of documentation to achieve particular purposes,
  • reviewing new or novel forms of property, eg carbon sequestration;
  • reviewing overseas developments in codifying commercial law; and
  • remedies.

1.3 Course teachers

Name E-mail address Office Consultation
Course convenor Judith Sihombing sihomb@netvigator.com N/A By email


2.1 Course Learning Outcomes (CLOs) for this course

CLO 1 Describe and explain the forms of securities, their individual benefits and any restrictions on their use;

CLO 2 Use relevant information about the forms of property, of security, and relevant legislation and decisions to draft appropriate documentation for consumer as well as corporate security. In addition, to use the information to take appropriate action on default of a security transaction;

CLO 3 Apply the principles to understanding a new set of facts, and new forms of property, and how these are able to be dealt with under existing law;

CLO 4 Demonstrate how lending and securing lender are dealt with under Hong Kong common law, and to identify the role of equity in this application, and the role of associated matters relevant to the enforcement of credit and security transactions.

CLO 5  Relate the elements of credit and security to the broader areas of law, such as company law, and trusts, and further, to relate this to the global role of Hong Kong in enhancing out status as a financial centre. This complements the reasons referred to recently for several changes to the law – including company, trusts, stamp duty (on Islamic bonds) – to ensure we do not fall behind out competitors.

2.2 LLM Programme Learning Outcomes (PLOs) & Programme Learning Outcomes to be achieved in this course

PLO A On successful completion of the curriculum, students should be able to demonstrate a solid understanding of the body of legal knowledge and the capacity to conduct research on, critically analyse and evaluate legal principles, at a level required to meet the standards and expectations of the legal profession and the community at large.

PLO B On successful completion of the curriculum, students should be able to apply their legal knowledge and research skills to practical situations or theoretical challenges, and utilise their comparative understanding of the law and its political, social and cultural contexts to provide original and creative insights to legal problems.

PLO C On successful completion of the curriculum, students should be able to apply the knowledge, lawyering skills and legal reasoning to real and novel situations in life, with a view to resolving issues, problems and disputes within the legal parameters.

PLO D On successful completion of the curriculum, students should be able to demonstrate the ability to present effectively legal arguments in the professional context, as well as conveying and explaining the law effectively to lay clients and members of the larger community.

PLO E On successful completion of the curriculum, students should be able to appreciate the underlying moral values of the law and ethics in the profession and the legal system in the broad social, economic, political and cultural contexts: justice, the Rule of Law, and protection of rights and liberties which form the fabrics of a civilised society, and the importance of upholding these values by the legal community.

PLO F On successful completion of the curriculum, students should be able to develop a strong awareness of social issues and conditions, and utilise analytical abilities and rhetorical advocacy to provide leadership for the betterment of the human community.

CLO 1  ✓  ✓
CLO 2  ✓  ✓
CLO 3  ✓  ✓

3.1 Assessment Summary

Assessment task Due date Weighting Feedback method* Course learning outcomes
Final exam TBC 100% 1 1, 2, 3, 4, 5
*Feedback method (to be determined by course teacher)
1 A general course report to be disseminated through Moodle
2 Individual feedback to be disseminated by email / through Moodle
3 Individual review meeting upon appointment
4 Group review meeting
5 In-class verbal feedback

3.2 Assessment Detail

To be advised by course convenor(s).

3.3 Grading Criteria

Please refer to the following link: http://www.law.hku.hk/course/grading-criteria/


4.1 Learning Activity Plan

Seminar: 3 hours / week for 12 teaching weeks
Private study time: 9.5 hours / week for 12 teaching weeks

Remarks: the normative student study load per credit unit is 25 ± 5 hours (ie. 150 ± 30 hours for a 6-credit course), which includes all learning activities and experiences within and outside of classroom, and any assessment task and examinations and associated preparations.

4.2 Details of Learning Activities

To be advised by course convenor(s).

5.1 Resources

Reading materials: Reading materials are posted on Moodle
Core reading list: TBA
Recommended reading list: TBA

5.2 Links

Please refer to the following link: http://www.law.hku.hk/course/learning-resources/

By the publication of the course profile online, the Faculty deems the student as having been notified of the course requirements.