12 Security Interests

Subject(s):

Contract — Insolvency clauses and damages

This chapter discusses what is a security interest (mainly mortgages, pledges, and charges) and the use of security interests in international finance, as well as the role of title finance transactions, such as finance leases, repos, securities lending, conditional sales, and sale and leaseback. It surveys the comparative strengths of security interests across the world’s jurisdictions and describes which law governs aspects of security interests, including the secured debt, the validity of the security interest, transfers of secured debt, enforcement remedies, and the impact of bankruptcy proceedings. It reviews risk mitigation and the role of corporate structures to minimise risks and to maximise the role of the governing law.