Creation of security interests The existing rules relating to the creation of security interests vary considerably according to the type of interest created.   This working group has been looking at the simplification of these rules, and the reduction of formalities such as writing where appropriate. Registration of security interests It is vital that a system … Continue reading Creation and Registration

Click on the following link to read the Working Group B Draft Summary Paper. Priorities Parties which lend or supply goods or services on credit often take a security interest over property owned by the debtor in order to provide themselves with protection against the risk that the debtor will become insolvent before the debt is … Continue reading Priorities

Insolvency One of the issues which the Project is considering is the abolition of the distinction between a fixed and floating charge, given the uncertainties relating to the distinction which exist in practice.  A number of consequences currently flow from the distinction in insolvency.  This group is considering the alternative ways in which these issues could be … Continue reading Insolvency and Enforcement

Financial collateral means cash (money in bank accounts), securities (both debt and equity) and credit claims (sums owed to banks). Cash and securities are the principal forms of collateral used in the financial markets, while credit claims are an important class of collateral for certain specialised market operations. Legal certainty as to the effectiveness of … Continue reading Financial Collateral

Receivables financing is a very important source of finance for small businesses.  Anything which limits the availability of this type of financing, or which increases its costs, requires examination.   Receivables financiers take an assignment or a charge over the receivables they finance. Some contracts for the supply of goods or services by small businesses include … Continue reading Ban on Assignment Clauses