In rem rights
In rem is Latin for ‘related to a thing’. In rem rights refer to a right over property that is enforceable against other persons generally. This is in contrast to a right in personam.
In rem rights include the rights to possess, use, sell or transfer ownership of property.
In the context of insolvency law, one example of in rem right is the right of a secured creditor to seize and sell a specific asset that has been used as collateral for a loan.
For example, if a company takes out a secured business loan and uses their commercial property as collateral, the lender has a security interest in that property. If the company is unable to repay the loan and is placed in external administration, the secured creditor may have the right to seize and sell the property in order to satisfy the debt owed to them. This right is an in rem right and it is enforceable against any other creditors, as it is based on the particular asset (the commercial property) rather than on the debtor themselves.
In rem rights are important in a wide range of legal contexts, including property law, corporate law, and admiralty law. In each of these areas, the legal rights and obligations of individuals are tied to the particular property or assets in question.