We use cookies to enhance your experience on our website. By continuing to use our website, you are agreeing to our use of cookies. You can change your cookie settings at any time.
Find out more
Jump to Content
Jump to Main Navigation
User Account
Personal Profile
See all online law products
More
About
Guided Tour
Subscriber Services
Contact Us
FAQ
Help
Search
Browse all
Area of law
Financial Law [FBL]
International Commercial Arbitration [ICMA]
Private International Law [PRIL]
International Commercial Law [ICML]
Author
My Content
(0)
Recently viewed
(0)
Save Entry
My Searches
(0)
Recently viewed
(0)
Save Search
Print
Save
Cite
Email this content
Share Link
Copy this link, or click below to email it to a friend
Email this content
or copy the link directly:
https://olrl.ouplaw.com/view/10.1093/law/9780198796138.001.0001/law-9780198796138-miscMatter-6
The link was not copied. Your current browser may not support copying via this button.
Link copied successfully
Copy link
Share This
Sign in
You could not be signed in, please check and try again.
Username
Please enter your Username
Password
Please enter your Password
Forgot password?
Don't have an account?
Sign in via your Institution
You could not be signed in, please check and try again.
Sign in with your library card
Please enter your library card number
View translated passages only
Oxford Law Citator
Contents
Expand All
Collapse All
Preliminary Material
Preface
Table of Contents
Table of Cases
United Kingdom
Australia
Canada
Ireland
New Zealand
South Africa
Singapore
United States
Table of Legislation
United Kingdom
Statutes
Statutory Instruments
Draft Legislation
Roman Law
Australia
Canada
Germany
New Zealand
United States
International Instruments
Main Text
Introduction
Intro.01
Intro.02
Intro.03
What does tracing in commercial transactions mean?
Intro.04
Intro.05
Intro.06
Intro.07
Why is tracing in commercial transactions important?
Intro.08
Intro.09
The structure of the book
Intro.10
1 The Structure of Interests in Property in Commercial Transactions
Preliminary Material
1.1 Introduction
1.01
1.2 Basic Concepts
1.02
1.2.1 Property rights and personal rights
1.03
1.04
1.05
1.06
1.2.2 Contractual rights
1.07
1.2.3 Property as assets and property as interests in assets
1.08
1.09
1.10
1.11
1.12
1.3 Overview of Forms and Purposes of Key Proprietary Interests
1.13
1.3.1 Retention of title in a contract of sale
1.14
1.15
1.16
1.17
1.18
1.3.2 Hire-purchase agreement
1.19
1.20
1.21
1.22
1.23
1.24
1.3.3 Lease
1.25
1.26
1.27
1.28
1.3.4 Security interests
1.29
1.30
1.3.4.A Pledge
1.31
1.32
1.33
1.3.4.B Mortgage
1.34
1.35
1.36
1.3.4.C Charge
1.37
1.38
1.39
1.4 Relationship between the Parties to the Transaction
1.40
1.41
1.42
1.4.1 The relevance of the agreement
1.43
1.44
1.45
1.4.2 The general lack of a fiduciary relationship
1.46
1.47
1.48
1.49
1.50
1.51
1.52
1.53
1.4.3 A new perspective: Power and authority
1.54
1.55
1.56
1.57
1.58
1.59
1.60
1.5 Conclusion
1.61
1.62
1.63
2 Loss of Proprietary Interest in an Asset
Preliminary Material
2.1 Introduction
2.01
2.02
2.2 Destruction of Asset
2.03
2.2.1 Physical destruction
2.04
2.05
2.06
2.2.2 Deemed destruction
2.2.2.A An overview
2.07
2.08
2.2.2.B Fixtures
2.2.2.B.a Becoming a fixture
2.09
2.10
2.11
2.2.2.B.b Attempts to preclude the loss of proprietary interests in goods that become fixtures
2.12
2.13
2.14
2.2.2.B.c Power to remove fixtures
2.15
2.2.2.B.c.i Enforceability as against mortgagees and other transferees
2.16
2.17
2.18
2.19
2.20
2.2.2.B.c.ii Enforceability in insolvency of the grantee of the power
2.21
2.2.2.B.d Conclusion on fixtures
2.22
2.2.2.C Accession
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30
2.31
2.2.2.D Manufacture into a new asset: Specification
2.32
2.33
2.34
2.35
2.36
2.2.3 Conclusion
2.37
2.3 Mixing under Special Circumstances
2.38
2.39
2.3.1 Mixing generally: No loss of proprietary interests
2.40
2.41
2.42
2.43
2.44
2.45
2.46
2.3.2 Consensual loss of proprietary interests in the context of mixtures
2.47
2.3.3 Loss of pledge in mixtures
2.48
2.49
2.50
2.51
2.52
2.53
2.4 Disposition of the Interest in the Asset
2.4.1 General
2.54
2.55
2.4.1.A The basic position: nemo dat
2.56
2.57
2.4.1.B The nature of the ‘exceptions’ to nemo dat
2.58
2.59
2.60
2.4.1.C The notion of a disposition
2.61
2.62
2.63
2.64
2.65
2.4.2 Dispositions of assets subject to legal security interest
2.66
2.4.2.A By the pledgor
2.67
2.68
2.69
2.70
2.4.2.B By a legal mortgagor: A ‘seller in possession’ defence?
2.71
2.72
2.73
2.4.2.C Registration: Disposition to purchasers of assets subject to unregistered security
2.74
2.75
2.76
2.77
2.78
2.79
2.4.3 By the grantor of equitable security interest
2.80
2.4.3.A Bona fide purchaser defence
2.81
2.82
2.83
2.4.3.B Disposition of assets subject to the fixed charge
2.84
2.4.3.B.a Power to dispose
2.85
2.86
2.87
2.4.3.B.b Lack of authority to dispose unless specifically granted
2.88
2.89
2.4.3.C Dispositions of assets under a floating charge
2.90
2.91
2.4.4 By a buyer under a contract of sale with RoT clause
2.92
2.93
2.4.4.A Dispositions authorized by the RoT seller
2.94
2.95
2.96
2.97
2.98
2.99
2.100
2.101
2.4.4.B By a person with apparent authority or apparent ownership
2.102
2.103
2.104
2.4.4.C Disposition in circumstances triggering possession-based defences
2.105
2.106
2.107
2.108
2.109
2.110
2.4.5 By a hirer of goods under a hire-purchase agreement
2.111
2.112
2.113
2.114
2.4.6 By a lessee
2.115
2.4.7 The relationship between the defences and claims to traceable proceeds of dispositions
2.116
2.117
2.118
2.119
2.120
2.121
2.122
2.123
2.5 Loss of a Proprietary Interest through a Disposition by a Third Party
2.124
2.125
2.126
2.6 Conclusion
2.127
2.128
2.129
3 Derived Assets
Preliminary Material
3.1 Introduction
3.01
3.02
3.2 Derivation
3.2.1 The issue
3.03
3.04
3.05
3.06
3.07
3.08
3.09
3.2.2 Analytical categories
3.10
3.2.2.A Proceeds
3.11
3.12
3.2.2.A.a Lowest intermediate balance rule
3.13
3.14
3.2.2.A.b Asset acquired earlier as proceeds (backwards tracing)
3.15
3.16
3.17
3.2.2.A.c Multiple claimants
3.18
3.19
3.20
3.2.2.B Products
3.21
3.22
3.2.2.C Fruits
3.23
3.24
3.2.2.C.a Natural fruits different from produced widgets
3.25
3.2.2.C.b Limitations in the analogy between natural and civil fruits
3.26
3.27
3.2.2.C.c Distinction between fruits and proceeds
3.28
3.29
3.2.2.C.c.i Functional similarity based on economic efficiency
3.30
3.31
3.2.2.C.c.ii Conceptual distinctions
3.32
3.33
3.34
3.2.3 Derived assets from the contractual perspective
3.35
3.36
3.37
3.38
3.3 Classification of Changes to Subject Matter of Proprietary Interests
3.39
3.3.1 Changes of subject matter not leading to a new asset
3.3.1.A Following into the original collateral (accretion, mixing)
3.40
3.3.1.B Loss of subject matter
3.41
3.3.2 Changes of subject matter leading to a new asset
3.3.2.A Proceeds and products (substitutes)
3.42
3.43
3.3.2.B Fruits
3.44
3.45
3.46
3.3.2.C Special derived assets: rights to payment
3.47
3.48
3.49
3.4 Conclusion
3.50
3.51
3.52
3.53
3.54
4 Default Rules in the Absence of an Agreement
Preliminary Material
4.1 Introduction
4.01
4.02
4.2 The ‘Principle of Substitutions and Accretions’ in Buhr v Barclays Bank
4.03
4.04
4.05
4.06
4.3 Rights to Accretions
4.07
4.3.1 Right to asset, not value
4.08
4.09
4.10
4.11
4.3.2 Specific issues
4.12
4.3.2.A Goodwill as an accretion to the business not premises
4.13
4.14
4.3.2.B Additions that diminish the value of an asset
4.15
4.4 Automatic Rights to Substitutes?
4.16
4.17
4.4.1 Lack of support for the ‘principle of substitutions’
4.4.1.A The questionable support in authorities
4.18
4.19
4.20
4.21
4.4.1.B No analogy between substitutions and accretions
4.22
4.4.1.B.a Argument from authority
4.23
4.24
4.4.1.B.b Argument from principle
4.25
4.26
4.27
4.4.2 Right to insurance proceeds
4.28
4.29
4.30
4.31
4.4.3 Rights to proceeds of authorized dispositions in the context of security interests
4.32
4.4.3.A Fixed charges over proceeds of authorized dispositions
4.33
4.34
4.35
4.36
4.37
4.4.3.B Rights to proceeds of authorized dispositions of assets under a floating charge
4.38
4.4.3.B.a An automatic right to proceeds under a floating charge?
4.39
4.40
4.41
4.4.3.B.b Critique of the automatic right to proceeds
4.4.3.B.b.i Argument from authority
4.42
4.43
4.44
4.45
4.46
4.4.3.B.b.ii Argument from principle
4.47
4.4.3.B.c Need for an express term as the source of the right to proceeds
4.48
4.4.4 Automatic right of a junior creditor to sale proceeds upon enforcement by a senior creditor
4.49
4.50
4.51
4.52
4.53
4.5 Automatic Right to Fruits?
4.54
4.5.1 Holders of title-based interests
4.55
4.56
4.57
4.58
4.59
4.5.2 Secured creditor in possession
4.60
4.61
4.62
4.63
4.64
4.65
4.66
4.67
4.5.2.A Right to crops
4.68
4.5.2.B Right to rents with respect to tenancies
4.69
4.5.3 The grantor of security in possession
4.70
4.71
4.72
4.73
4.74
4.75
4.6 Conclusion
4.76
4.77
4.78
4.79
4.80
5 Agreements with Derived Asset Clauses
Preliminary Material
5.1 Introduction
5.01
5.02
5.03
5.2 Contracts of Sale with RoT Clauses Extending to Derived Assets
5.04
5.05
5.2.1 Generally
5.06
5.07
5.08
5.09
5.10
5.2.2 Products clause
5.11
5.12
5.13
5.14
5.15
5.2.3 Fruits clause
5.16
5.17
5.2.4 Sale proceeds clause
5.18
5.2.4.A Right to proceeds on agency construction
5.19
5.20
5.21
5.22
5.2.4.B Right to proceeds on the charge categorization
5.23
5.24
5.25
5.3 Security Agreements with Derived Asset Clauses
5.26
5.3.1 The effect of derived asset clauses as after-acquired property clauses
5.27
5.3.1.A Pledge and legal mortgage
5.28
5.29
5.3.1.B Equitable security interests
5.30
5.31
5.32
5.33
5.34
5.35
5.36
5.37
5.3.1.C Security interest in after-acquired property granted in a document by an individual
5.38
5.39
5.40
5.41
5.42
5.43
5.44
5.45
5.3.2 The character of interest
5.46
5.3.2.A The nature of asset and characterization of charges
5.47
5.48
5.49
5.3.2.B Equipment leases and hire-purchase agreements and rentals
5.50
5.51
5.52
5.53
5.54
5.55
5.56
5.3.2.C Insurance policy and proceeds
5.57
5.58
5.3.2.D Intellectual property rights and exploitation rights
5.59
5.60
5.61
5.3.2.E Shares and dividends paid upon them
5.62
5.63
5.3.2.F Land and fruits from land
5.64
5.3.2.G Long-term contracts and rights to payment
5.65
5.66
5.4 Conclusion
5.67
5.68
5.69
5.70
6 Claims to Proceeds of Unauthorized Acts
Preliminary Material
6.1 Introduction
6.01
6.02
6.2 Automatic Right to Proceeds of Unauthorized Dispositions
6.03
6.04
6.2.1 Reasons in Buhr at first instance
6.05
6.2.1.A Implied clause of conveyance of all estate including proceeds
6.06
6.2.1.B Analogy with a statutory trust of proceeds of sale
6.07
6.08
6.09
6.10
6.2.2 The reasoning of the Court of Appeal
6.11
6.12
6.13
6.2.2.A Fairness or otherwise ‘significant lacuna’
6.14
6.15
6.2.2.B Possible ‘exchange product theory’
6.16
6.2.2.C Relevance of the fiduciary relationship?
6.17
6.18
6.19
6.2.2.D Adoption of an unauthorized transaction
6.20
6.21
6.22
6.2.3 Need for a different analysis
6.23
6.24
6.25
6.26
6.27
6.28
6.3 Alternative Analysis to Buhr v Barclays Bank
6.29
6.3.1 The problem of basis: vindicatio and unjust enrichment
6.30
6.31
6.32
6.33
6.34
6.3.2 Proprietary claims to derived assets based on unjust enrichment
6.35
6.36
6.3.2.A Enrichment and its proprietary base
6.37
6.38
6.39
6.40
6.41
6.3.2.B Lack of authority as the unjust factor
6.42
6.43
6.44
6.45
6.46
6.3.2.C Is proprietary response appropriate?
6.47
6.3.2.C.a Re Diplock objections
6.48
6.49
6.3.2.C.b Policy arguments
6.50
6.51
6.52
6.53
6.54
6.4 Conclusion
6.55
6.56
6.57
7 What Should a Default Proceeds Rule Be?
Preliminary Material
7.1 Introduction
7.01
7.02
7.2 Reform of the English Law of Secured Transactions and Title-based Finance
7.03
7.04
7.05
7.3 Property Law Considerations in Shaping the Default Rules
7.06
7.07
7.08
7.4 Economic Efficiency Considerations
7.09
7.10
7.4.1 Economic efficiency
7.11
7.12
7.13
7.14
7.15
7.16
7.17
7.18
7.4.2 Promoting efficient credit market equilibrium: Substitutes
7.19
7.20
7.21
7.4.3 Inefficiency of automatic extension of interests to fruits
7.22
7.4.3.A Oversecuritization
7.23
7.24
7.25
7.26
7.4.3.B The deadweight loss of the fruits rule
7.27
7.28
7.29
7.30
7.5 Security in Proceeds under Article 9 UCC
7.31
7.5.1 Historical development of security in rents and income
7.32
7.33
7.5.2 Difference between ‘proceeds’ and after-acquired property in insolvency
7.34
7.35
7.36
7.5.3 Value-based conception of proceeds: A practical convenience
7.37
7.5.3.A Rental and licence fees
7.38
7.5.3.B Stock dividends as proceeds
7.39
7.5.3.B.a Liquidating dividend
7.40
7.5.3.B.b Ordinary cash dividend
7.41
7.42
7.43
7.5.3.C Rents from leases
7.44
7.5.3.D The non-existent collateral problem
7.45
7.46
7.47
7.5.4 The rationale for a wide ‘proceeds rule’
7.48
7.5.4.A Arguments in favour of a wide definition of ‘proceeds’
7.49
7.50
7.5.4.B Critique of a wide ‘proceeds’ definition
7.51
7.5.4.B.a Codification of a bargain, which may not exist
7.52
7.53
7.5.4.B.b Inefficiency of treating fruits as proceeds
7.54
7.55
7.56
7.6 Should English Law Follow Article 9 UCC?
7.57
7.58
7.59
7.7 Conclusion
7.60
7.61
7.62
Conclusion
Con.01
Con.02
Con.03
Con.04
Con.05
Con.06
Con.07
Con.08
Further Material
Index
Sign up for alerts
Table of Legislation
From:
The Law of Tracing in Commercial Transactions
Magda Raczynska
Content type:
Book content
Product:
International Commercial Law [ICML]
Published in print:
01 February 2018
ISBN:
9780198796138
Prev
|
Next
[44.200.30.73]
44.200.30.73