Dispossession of the grantor

Meaning of location of the grantor

The law should specify that a security right in after acquired or after created assets of the grantor has the same priority as a security right in assets of the grantor owned or existing at the time the security right is made effective against third parties.

The law should specify that a security right is created by agreement between the grantor and the secured creditor which is in writing signed by the grantor in accordance with recommendation 12 that evidences the intent of the grantor to grant a security right or is accompanied by delivery of possession pursuant to the agreement and in accordance with recommendation 9.

(g) Security agreement means an agreement between a grantor and a creditor, in whatever form or terminology, that creates a security right.

If the grantor does not have a place of business, reference is to be made to the habitual residence of the grantor.

Legal sufficiency of grantor name in a registered notice

In the insolvency of a non grantor debtor, the creditor is an unsecured creditor with an unsecured claim against the non grantor debtor.

Rights and obligations of the grantor and the secured creditor

The debtor may or may not be the person that grants the security right to a secured creditor (see grantor).

Dispossession of the grantor is sufficient only if an objective third person can conclude that the encumbered assets are not in the actual possession of the grantor.

The law should provide that a security right in a bank account is effective as between the secured creditor and the grantor notwithstanding an agreement between the grantor and the depositary bank limiting in any way the grantor's right to create a security right in its bank accounts.

(iv) The insolvency representative in the insolvency of the grantor or

The insolvency law should provide that an asset of the estate acquired after the commencement of an insolvency proceeding with respect to the grantor is subject to a security right created by the grantor before the commencement of the insolvency proceeding to the extent the asset is proceeds (whether cash or non cash) of an encumbered asset which was an asset of the grantor before the commencement of the proceeding.

If the grantor has a place of business in more than one State, the grantor's place of business is that place where the central administration of the grantor is exercised.

(a) Alert third parties dealing with the movable assets of the grantor of the risk that those assets may be encumbered by a security right and

In the case of a funds transfer from a bank account initiated by the grantor, the transferee of funds takes free of a security right in the funds of the bank account unless the transferee has knowledge that the transfer violates the terms of the security agreement and the transfer is outside the ordinary course of business of the grantor .

(c) The registration system is set up to permit the indexing and retrieval of notices according to the name of the grantor or according to some other reliable identifier of the grantor

The insolvency law should provide that, in the case of the insolvency proceedings of the grantor, the acquisition financier has the rights and duties of a holder of a security right.

The insolvency law should provide that, in the case of the insolvency proceedings of the grantor, the acquisition financier has the rights and duties of a holder of a security right.

(ii) Possessory security right means a security right in tangibles that are in the actual possession of the secured creditor or of another person (other than the debtor or other grantor) holding the asset for the secured creditor.

The law should provide that, for a possessory security right to be effective against third parties, dispossession of the grantor should be actual and not constructive, fictive or symbolic.

(b) Dispossession of the grantor if the encumbered assets are specific items of tangible movable property

(b) Acquisition security right means a security right in an asset that secures the obligation to pay any unpaid portion of the purchase price of the asset or other obligation incurred to enable the grantor to acquire the asset.

The law should also permit discharge of a registration by agreement of the secured creditor and the grantor.

(a) The names (or other reliable identifiers) of the grantor and the secured creditor, and their addresses

1 11 and recommendation 8). Where the security right at issue (which secures the debtor's obligation) is granted by the debtor, the term debtor also refers to the grantor.

A suggestion to limit the scope of recommendation 105 to goods exported to the grantor only did not attract sufficient support as it would unnecessarily exclude, for example, situations where goods were shipped by the grantor to another party.

(f) Grantor means a person that creates a security right in one or more of its assets in favour of a secured creditor to secure either its own obligation or that of another person (see debtor).

The law should adopt a summary procedure to enable the grantor to compel discharge of a registration if no security agreement has been completed between the parties or if the security right has been terminated by full payment or performance of all of the secured obligations.

In addition, the Guide recommends recognition of a security right in all existing and future assets of a business grantor through a single security agreement such as already exists in some legal systems as an enterprise mortgage or as a combination of fixed and floating charges.

Except as provided in the recommendations on the law applicable to the enforcement of security rights after an insolvency proceeding has been commenced with respect to the assets of the grantor, the law should provide that matters affecting the enforcement of a security right are governed by

The law should provide that the delivery of possession of the assets to be encumbered is to the secured creditor or a third person (other than the grantor or an agent or employee of the grantor) that holds the assets on behalf of the secured creditor.

The law should provide that the security agreement must, at a minimum, identify the secured creditor and the grantor, and reasonably describe the secured obligation and the assets to be encumbered.

Or have they the treasures of the mercy of thy Lord , the Exalted in Power , the Grantor of Bounties without measure ?

Or have they the treasures of the mercy of thy Lord , the Exalted in Power , the Grantor of Bounties without measure ?

The law should provide that the name or other identifier of the grantor entered on a registered notice is legally sufficient if the notice can be retrieved by searching the registry record according to the correct legal name or other identifier of the grantor.

The law should provide that, in the case of default on the part of the grantor, the acquisition financier is entitled to repossess and dispose of the goods subject to the same rules applicable to security rights generally.

Because the granting of a security right should not make it difficult or impossible for the debtor or other grantor to continue to operate its business, the Guide recommends that the legal regime provide for non possessory security rights in a broad range of assets coupled with mechanisms for publicizing the existence of such security rights.

The law should provide that the mutual rights and obligations of the grantor and the secured creditor with respect to the security right, whether arising from the security agreement or by law, are governed by the law chosen by them and, in the absence of a choice of law, by the law governing the security agreement.

Another view was that the super priority of acquisition security rights in inventory should be extended to proceeds of inventory (in all cases or only if agreed between the acquisition financier and the buyer, grantor or financial lessee).

The law should also provide that, unless the parties otherwise agree, a security right in future property is created when the grantor acquires rights or the right to transfer rights in such property.

C. Except as provided in D , the insolvency law should provide that an asset of the estate acquired after the commencement of an insolvency proceeding is not subject to a security right created by the grantor before the commencement of the insolvency proceeding.

The law should provide that the creation, the effectiveness against third parties and the priority over the rights of competing claimants of a security right in intangible property are governed by the law of the State in which the grantor is located.

The Working Group agreed with the substance of recommendation 9 that, upon default by the grantor, the acquisition financier would be entitled to repossess and dispose of the goods subject to the rules applicable to the enforcement of non acquisition security rights generally.