20:59
got a random stanford email and almost had a heart attack
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LSDefine
Simple English definitions for legal terms
fiducia
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A quick definition of fiducia:
Definition: Fiducia is a legal term from ancient Rome that means entrusting something to someone as a form of mortgage or deposit. This allowed the person to hold onto the property until the debt was paid off or the deposit was terminated. However, this type of mortgage fell out of use and was replaced by a simpler and more convenient form called hypotheca. Modern law has followed this change.
A more thorough explanation:
Definition: Fiducia is a legal term from Roman law that refers to the transfer of title by way of mortgage or deposit, with a provision for reconveyance upon payment of the debt or termination of the deposit.
For example, if someone borrows money and puts up their house as collateral, they are using fiducia. The lender has the right to take possession of the house if the borrower fails to repay the loan, but the borrower can regain ownership of the house by paying off the debt.
Fiducia was an early form of mortgage that was eventually replaced by the hypotheca, which is a simpler and more convenient way of transferring title. However, fiducia still has some use in modern law, particularly in civil law jurisdictions.