A fiduciary security, once registered, has an executorial power that is similar to that of a final court judgement. This means that a holder need not obtain a court order to exercise its power to sell the asset that is the subject of a registered fiduciary security. The preferential right of a holder prevails on the bankruptcy, insolvency or liquidation of the grantor. The grantor is prohibited from creating further fiduciary securities over assets that have become the object of a registered fiduciary security. Thus each asset can only be the subject of one fiduciary security.
Priority is determined by date of registration.