The Governance of Corporate Groups

Cover......Page 1
Half-title......Page 3
Series-title......Page 5
Title......Page 7
Copyright......Page 8
Contents......Page 9
Preface......Page 11
Abbreviations......Page 13
The definition of security interests......Page 15
Reasons for the taking of security......Page 18
Why the law permits the taking of security......Page 25
Secured credit and the promotion of economic activity......Page 29
The international consensus on secured credit......Page 32
The efficiency of secured lending......Page 36
The Article 9 ‘full priority of secured credit’ debate......Page 41
The ‘carve-out’ for unsecured creditors in England......Page 46
The Enterprise Act provisions......Page 48
Conclusion......Page 51
Basic distinctions......Page 53
Mortgages and charges......Page 54
Pledges......Page 55
Liens: common-law liens......Page 58
Liens: equitable liens......Page 59
English law and the essentials of a modern law of security interests......Page 60
Quasi-security: sale and lease-back/hire purchase......Page 65
Quasi-security: retention-of-title clauses......Page 67
Quasi-security: assignment of receivables......Page 68
Quasi-security: agency sales financing......Page 70
Quasi-security: Quistclose/conditional-purpose trusts......Page 71
Dissatisfaction with the current priorities regime......Page 73
The corporate rescue agenda......Page 75
The Article 9 agenda......Page 78
Conclusion......Page 82
3 An overview of Article 9 of the Uniform Commercial Code......Page 84
The general features of Article 9......Page 85
Attachment of an Article 9 security interest......Page 87
Perfection of an Article 9 security interest......Page 90
Priorities under Article 9......Page 93
The ‘first-to-file’ priority rule and subsequent advances......Page 94
The effect of Article 9 filing on subsequent security agreements......Page 96
Special Article 9 priority rules: the purchase-money security interest......Page 98
Other special Article 9 priority rules......Page 106
Comparisons of Article 9 with English law......Page 107
Conclusion......Page 110
Advantages of an Article 9-type regime for English law: an end to compartmentalisation......Page 113
Removal of complexities and simpler priority rules......Page 114
The greater convenience of notice filing......Page 118
The effect of an Article 9 regime on purchasers of property that has been used as security......Page 119
The floating charge and ‘reformed’ personal property security law......Page 122
Implications for execution creditors......Page 126
Implications of Article 9 for preferential creditors......Page 129
The continued importance of characterisation issues under Article 9......Page 134
Transitional matters......Page 136
Complications with the Law Commission recommendations......Page 137
Conclusion......Page 141
5 Notice filing versus transaction filing......Page 143
An overview of the Article 9 system of perfection by notice filing......Page 144
An overview of registration under Part 12 Companies Act 1985......Page 146
Purposes served by the filing system......Page 148
Comparisons between perfection by filing under Article 9 and registration under Part 12 Companies Act 1985......Page 152
Identity of the person making the filing......Page 154
Continuation and termination of perfection......Page 155
Effect of errors or omissions in the financing statement or filed particulars......Page 157
Unperfected security interests......Page 161
Invalidity of unperfected or unregistered security interests in liquidation......Page 163
Unperfected security interests and the European Convention on Human Rights......Page 166
Knowledge of unperfected security interests and effect on priorities......Page 168
Late registration......Page 172
Security interests existing on property acquired......Page 173
Conclusion......Page 175
Background......Page 177
Types of reservation-of-title clause......Page 178
Reasons for the use of reservation-of-title clauses......Page 179
Registration or filing requirements......Page 180
Comparisons between the English position and that in the United States under Article 9......Page 184
Simple retention-of-title clauses......Page 189
Current-account clauses......Page 190
Proceeds-of-sale clauses......Page 195
Claims to proceeds of collateral in the United States......Page 203
Mixture of goods: accessions......Page 205
Mixture of goods without loss of physical identity......Page 208
Mixture of heterogeneous goods or the manufacture of a new article......Page 210
Aggregation clauses and claims against manufactured goods......Page 213
Mixing of goods and Article 9......Page 215
English and European reform initiatives......Page 218
Conclusion......Page 221
7 Receivables financing......Page 223
Mortgages and charges over receivables in England......Page 224
Fixed and floating charges over receivables......Page 225
Hybrid fixed/floating charges over debts......Page 231
Application of registration (perfection) requirements to charges over debts......Page 235
Factoring or the outright assignment of debts......Page 238
Exploring the outright-assignment/security-interest distinction......Page 240
Non-assignment clauses......Page 242
Negative-pledge clauses......Page 245
Notice to the debtor and cross-claims......Page 247
Potential positive liability of factor to debtor......Page 249
The Article 9 filing obligation as applied to receivables......Page 251
Chattel-paper financing and Article 9......Page 253
Priority issues and the Article 9 treatment of receivables......Page 256
Complexities in the Article 9 treatment of receivables and criticism thereof......Page 259
Conclusion......Page 261
Security interests over deposit accounts in England......Page 263
Registration of charges over cash deposits......Page 267
Deposit accounts under Article 9 UCC......Page 271
Security over shares and other investment property......Page 276
Reforming registration requirements with respect to shares......Page 279
The EU Financial Collateral Directive......Page 281
Security interests over insurance policies......Page 287
Conclusion......Page 289
PART 1 – GENERAL PROVISIONS......Page 291
PART 3 – PERFECTION AND PRIORITY......Page 292
PART 4 – RIGHTS OF THIRD PARTIES......Page 295
PART 5 – FILING......Page 296
PART 6. DEFAULT......Page 297
PART 1 GENERAL PROVISIONS......Page 299
PART 2 – EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT......Page 318
PART 3 – PERFECTION AND PRIORITY......Page 326
PART 4 – RIGHTS OF THIRD PARTIES......Page 359
PART 5 – FILING......Page 368
PART 6 – DEFAULT......Page 393
NOTIFICATION OF DISPOSITION OF COLLATERAL......Page 402
NOTICE OF OUR PLAN TO SELL PROPERTY......Page 403
Index......Page 418