The cornerstone of security in Iran is based around the concepts of mortgage and pledge. They give the secured creditor preference over all other non-secured creditors with respect to the asset that is subject to the security interest. The security cannot be cancelled without the mortgagee's or pledgee's consent. In Iran, a mortgage may be taken over both immoveable assets (including land and fixtures such as plant and machinery) as well as moveable assets. Moreover, security can be granted over Iranian assets in favour of foreigners. Though foreigners may take security over immoveable property, it must be noted that, under Iranian law, there are significant restrictions on the ownership of immoveable property by foreigners. In this regard, it may be preferable for a local entity appointed by the foreign financier to act as the mortgagee.