on Secured Transactions

Draft legislative guide on secured transactions

(c ) Colloquium on Reform of Secured transactions Law the draft UNCITRAL Legislative Guide on Secured Transactions (Clermont Ferrand, France 23 April 2004)

Recommendations of the draft Legislative Guide on Secured Transactions

Recommendations of the draft legislative guide on secured transactions

Recommendations of the draft legislative guide on secured transactions

A legal system that supports secured credit transactions is critical to reducing the perceived risks of credit transactions and promoting the availability of secured credit.

K. Harmonize secured transactions laws, including conflict of laws rules

(k) Harmonize secured transactions laws, including conflict of laws rules.

(f) The possible repercussions for secured transactions and secured creditors in the way in which corporate groups are treated in insolvency.

This Guide adopts terminology to express the concepts that underlie an effective secured transactions regime.

It was stated that a modern regime on secured transactions could simply not ignore bank accounts.

Furthermore, to the extent complete harmonization of national secured transactions laws might not be achieved, conflict rules would be particularly useful to facilitate cross border transactions.

The recommendations of the Guide are addressed to national legislators considering reform of domestic secured transactions laws.

This is most likely the case in States whose secured transactions regime is not up to date.

The purpose of this Guide is to assist States in the development of modern secured transactions laws with a view to promoting the availability of low cost secured credit.

These transactions are essentially non possessory security rights, and they are primarily used in States where the secured transactions law has not yet appropriately recognized non possessory security rights.

These examples represent only a few of the numerous forms of secured credit transactions currently in use, and an effective secured transactions regime must be sufficiently flexible to accommodate many existing methods of financing, as well as methods that may evolve in the future.

(dd) Consultations with German Ministry of Justice on the draft Legislative Guide on Secured Transactions (Berlin, Germany 15 November 2004)

However, in developing its secured transactions law, a State should take account of the increasing importance and economic value of intellectual property assets to companies seeking to obtain low cost secured credit.

Subject to the limitations discussed in the following paragraph, the secured transactions law would apply to security interests in intellectual property rights.

(cc) Bank account means, subject to law other than secured transactions law, an account maintained by a bank into which funds may be deposited.

A key to a successful legal regime governing secured transactions is to enable a broad array of businesses to utilize the full value inherent in their assets to obtain credit in a broad array of credit transactions.

To best promote the availability of low cost secured credit, the Guide suggests that secured transactions laws should be structured to enable businesses to utilize the value inherent in their property to the maximum extent possible to obtain credit.

In this regard, the Guide adopts two of the most essential concepts of successful secured transactions laws, the concepts of priority and effectiveness against third parties.

(dd) Intellectual property right includes, subject to law other than the secured transactions law, patents, trademarks, service marks, trade secrets, copyright and related rights and designs.

(b) The record of the registry is centralized that is, it contains all notices of security rights registered under the secured transactions law of the enacting State

In the spirit of providing practical, effective solutions, the Guide explores and develops the following key objectives and themes of an effective and efficient secured transactions regime.

Breach secured.

The purpose of the recommendations on key objectives is to provide a broad policy framework for the establishment and development of an effective and efficient secured transactions law.

The secretariat of the Conference is assisting UNCITRAL on private international law aspects of various UNCITRAL projects (including the ongoing work on a legislative guide on secured transactions).

3. Also commends the Commission for the approval of the substance of the recommendations of the draft legislative guide on secured transactions, which has been designed to facilitate secured financing, thus promoting increased access to low cost credit and enhancing national and international trade

(c) Secured obligation means the obligation secured by a security right.

Where a direct inconsistency exists, the State's secured transactions law should expressly confirm that the other law and international obligations govern those assets to the extent of that inconsistency

As a result, absolute transfers of all those types of obligation are excluded from the scope of the draft Guide and are left to other non secured transactions law.

It was also agreed that the commentary should discuss the impact of recommendation 2 in the context of an integrated and a non integrated approach to secured transactions law.

It was also observed that high value consumer goods subject to a title registry, such as motor vehicles, would also be exempted from registration in the secured transactions registry.

In conjunction with that session, an informal presentation was made of the recently completed secured transactions law in the Slovak Republic, which was supported by the World Bank and by EBRD.

Commercial transactions

Financial transactions

Reverse transactions

Isochronous transactions

Single transactions

Multiple transactions

Nested transactions