0 Introduction 1
0.1 General 1
0.2 International instruments 7
0.2.1 UNIDROIT Convention on International Factoring 7
0.2.2 UN Convention on the Assignment of Receivables in International Trade 8
0.2.3 The EBRD Model Law on Secured Transactions 10
0.2.4 UNIDROIT Convention on International Interests in Mobile Equipment 13
0.2.5 UNCTTRAL Legislative Guide on Secured Transactions 16 0.3 Purpose, scope and structure of the book 18
1 Secured credit and fundamental principles of international instruments 21
1.1 Introduction 21
1.2 Defining secured transactions, security interests and assignment of receivables 21
1.2.1 Secured transactions 21
1.2.2 Security interest 23
1.2.3 Assignment of receivables 28
1.2.4 Significant financing practices covered by in ternational instruments 32
1.3 Significance and rationale of secured lending 33
1.3.1 Security affords priority 33
1.3.2 Security affords control 40
1.3.3 Security assists expansion of business 40
1.3.4 Security and self-help 42
1.3.5 Security and bargain 42
1.3.6 Security and economic growth 43
1.4 Fundamental principles of international conventions and instruments 44
1.4.1 Promotion of low-cost credit 45
1.4.2 Ability to use all assets and obligations and non-possessory security 46
1.4.3 Efficient rules for creation of security interests 49
1.4.4 Predictable rules for third-party effectiveness 51
1.4.5 Clear priority rules for competing creditors 53
1.4.6 Harmonised conflict-of-laws rules in secured transactions 53
1.5 Conclusion 54
2 Harmonisation of secured transactions law in context 56
2.1 Introduction 56
2.2 Defining harmonisation in the context of secured transactions 58
2.3 Historical backdrop 62
2.4 International harmonisation 65
2.4.1 The need for international harmonisation and difficulties 67
2.4.2 Grounds for harmonisation to overcome divergent approaches 74
2.5 Conclusion 86
3 Scope of applicability and party autonomy 87
3.1 Introduction 87
3.2 Scope of application 87
3.2.1 Substantive dimension 88
3.2.2 Territorial dimension 103
3.3 The relationship between instruments 110
3.4 Party autonomy 113
3.5 Conclusion 123
4 Creation of security rights 124
4.1 Introduction 124
4.2 Recurrent problems in the creation of security rights 125
4.3 Creation of security rights 128
4.3.1 Relationship and distinction between creation and third-party effectiveness 128
4.3.2. Minimum formalities ana creation of security rights 132
4.3.3 Statutory and contractual limitations 139
4.3.4 Creation of security interest over bank accounts 157
4.4 International interests 157
4.5 Conclusion 161
5 Effectiveness of security interests against third parties 162
5.1 Introduction 162
5.2 Rationale for third-party effectiveness 163
5.2.1 Third-party effectiveness and creation 168
5.2.2 Difference between, third-party effectiveness and perfection 170
5.3 Methods of achieving third-party effectiveness 172
5.3.1 Registration 175
5.3.2 Possession 192
5.3.3 Alternative methods of achieving third-party effectiveness 195
5.4 Conclusions 199
6 Priority of security interests 200
6.1 Introduction 200
6.2 Issues in priority 201
6.3 Determination of priority status under the Guide 207
6.4 Divergence in priority rules in the assignment of receivables 209
6.4.1 'Priority' and 'competing claimants' 211
6.4.2 Article 22 and the conflict-of-laws rule 212
6.4.3 Optional annex 213
6.4.4 Independent conflict-of-laws rules 218
6.5 Model law 218
6.6 Cape Town Convention 221
6.6.1 Basic rule 221
6.6.2 Exceptions 222
6.6.3 Proceeds 223
6.6.4 Priority and assignment of associated rights and international interests 224
6.7 Conclusions 225
7 Acquisition financing devices 227
7.1 Introduction 227
7.2 Acquisition financing devices 228
7.2.1 General 228
7.2.2 Retention-of-title 229
7.2.3 Leases 232
7.3 The new frontier: unitary and non-unitary approach to acquisition financing 232
7.4 Conclusions 243
8 Choice-of-law issues 244
8.1 Introduction 244
8.2 Choice-of-laws and the international instruments 245
8.3 The Guide and the Receivables Convention 249
8.3.1 Connecting factors 249
8.3.2 The scope of the Guide's choice-of-law rules 250
8.3.3 The Receivables Convention: individual rules and Chapter V 250
8.3.4 Lex situs for tangible assets 252
8.3.5 Law of the grantor's (assignor's) location and other alternatives 257
8.3.6 Choice-of-law rules on security interest in proceeds 272
8.4 International interests in mobile equipment and choice-oflaws 274
8.5 Conclusion 278
Conclusion 280
Bibliography 285
Index 307