The Security by Means of Movable Property Act, 57 of 1993, does not prohibit incorporeal things from serving as security under a notarial bond. However, incorporeal things, which serve as security under a notarial bond, are not afforded the same security as corporeal things as provided for in section 1 of the said Act. This matter was discussed at the Registrars Conference in 2004 (see RCR 15 of 2004). Furthermore in terms of RCR 41 of 2005 it was also decided that a Water Use Licence may serve as security under a Notarial Bond.
Readers are also advised to read the following two cases:
Solomon v Registrar of Deeds 1944 CPD 319 and Smith v Farrelly's Trustees 1904 TS 949
The above cases are still applicable irrespective of the aforementioned Act.
It is trusted that the above has cleared up the matter sufficiently.