Catholic Creditor

Catholic Creditor, in the law of Scotland, is one whose debt is secured over several or the whole subjects belonging to the debtor—e.g. over two or more heritable estates. Questions of difficulty arise where one of these subjects is also burdened with other securities, but the other is burdened only with the catholic security. In such circumstances the catholic creditor is bound so to exercise his right as not unnecessarily to injure the securities of the other creditors. Thus, if he draw his whole debt from that subject on which there are other burdens postponed to his security, he must assign to the postponed creditors his security over the unburdened subject.