SECTION 4

By this Act, a personal security shall consist in the undertaking by an obligor to discharge an obligation in default of the principal debtor or at the earliest request of the obligee. Except otherwise provided for by this Act, the only real securities validly constituted shall be those governed by this Act.These shall consist of, either the right of the creditor to insist on his preferential right of payment from the proceeds of sale of the secured property, or the right to freely dispose of same acquired by virtue of the security agreement. Subject to the special provisions of this Uniform Act, real securities may be constituted by the debtor himself or by a third party to secure an obligation. Securities in the domain of fluvial, maritime and air space law, legal securities other than those governed by this Uniform act, as well as securities to guarantee the execution of contracts existing exclusively between financial institutions may be regulated by specific legislation.