suojelukiinnityksen

Suojelukiinnitys, a Finnish legal term, translates to "protective mortgage" or "security mortgage" in English. It refers to a type of mortgage used in Finland to secure a loan or other financial obligation, specifically designed to protect the creditor. Unlike a standard mortgage that primarily secures the principal loan amount, a suojelukiinnitys can be extended to cover additional liabilities.

This broader scope means that a suojelukiinnitys can secure not only the principal sum borrowed but also accrued interest, late fees, collection costs, and other potential expenses that might arise if the borrower defaults. The primary purpose is to provide the creditor with a more comprehensive guarantee against losses. This can be particularly useful in situations involving complex financial arrangements or higher-risk lending.

The establishment of a suojelukiinnitys follows the general procedures for creating a mortgage in Finland, requiring registration in the Land Register. However, its specific terms and the extent of the secured liabilities are crucial and must be clearly defined to be legally binding. While offering enhanced security for creditors, borrowers should be aware of the full extent of their obligations when agreeing to a suojelukiinnitys, as it can potentially encumber their property for more than the original loan amount. The specific wording and intent behind a suojelukiinnitys are always subject to legal interpretation.