The idea of modernizing finance law has spread around the world. Secured financing is a way to stimulate economic growth and modernize an economy. In theory, capital is not used to develop the community because of the lack of legal infrastructure by which banks can lend capital and can hold an expectation to get it back. Many developing countries adopt systems patterned on the Canadian system.
In Canadian law, the core of the system is the security interest. What is a security interest? A secured interest is Propriety interest in the debtors property. This allows assertion of the nemo dat principle. The secured creditor defeats anyone who thereafter who takes an interest in the property.