Also known as: persons entitled to enforce · PETE
Written by attorneys · grounded in primary & secondary sources — see below
The party vested with authority to compel performance of an obligation or to pursue remedies for its breach. That authority arises from possession of a negotiable instrument as its holder, from privity of estate or contract under a lease or servitude, or from control of the underlying debt secured by a mortgage.
Pilar Pena transferred her leased warehouse to Paragon Construction while remaining bound by a repair covenant that touched and concerned the leasehold. Paragon assumed possession but Pilar continued receiving demands for repairs from the landlord. Because the landlord never released Pilar from the original promise, the landlord remained the person entitled to enforce the covenant against her.
Penelope Price maintained a driveway across Pearl Porter's land in violation of an access easement for more than the prescriptive period. Pearl never objected and the use continued openly. Pearl's interest as the person entitled to enforce the servitude was thereby extinguished to the extent of the adverse use.
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Pulse Media held the promissory note after Horizon Capital endorsed and delivered it but never transferred possession of the mortgage document. When the borrower defaulted, Pulse Media commenced foreclosure. Only Pulse Media, as the person entitled to enforce the note, possessed standing to foreclose on the security interest.
Philip Powell purchased a leased building from Premier Manufacturing subject to a maintenance covenant that touched and concerned the property. The original lease parties had intended the burden to run with the estate. Because Philip entered privity of estate with the landlord and received no release, the landlord remained the person entitled to enforce the covenant against him.
No. A mortgage follows the underlying obligation. Only the party entitled to enforce the note may foreclose on the mortgage securing it.
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A transferee becomes the person entitled to enforce when the promise touches and concerns the transferred interest, the parties intended the burden to run, the transferee enters privity of estate, and the original obligee has not released the transferee.
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Yes. Continued adverse use maintained against the person entitled to enforce the servitude for the prescriptive period modifies or extinguishes that person's beneficial interest.
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Only the person entitled to enforce the obligation may commence foreclosure. When the obligation is evidenced by a negotiable instrument, that person is identified under UCC Section 3-301.
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