Secured Transactions

Lesson 6: International Secured Transactions Law

Welcome to Lesson 6 of our instructable on secured transactions. In this lesson, we will delve into the complexities of international secured transactions law, a crucial aspect for navigating cross-border financial arrangements.

Overview

International secured transactions law is essential for understanding how security interests can be protected and enforced across different jurisdictions. This involves a combination of international treaties, conventions, and local laws.

Key Concepts

Securitization
UNCITRAL Model Law on Secured Transactions
Cape Town Convention
Conflict of Laws

Conflict of Laws

When dealing with international secured transactions, one major challenge is the conflict of laws. This pertains to the differences in legal frameworks across countries that may affect the creation, perfection, and enforcement of security interests.

Example of conflict rules:

Lex situs: The law of the location where the collateral is situated.
Lex contractus: The law governing the contract between the parties.

graph TD; A["Conflict of Laws"] -->|Lex situs| B["Law of Collateral Location"] A -->|Lex contractus| C["Law Governing Contract"]

UNCITRAL Model Law on Secured Transactions

The UNCITRAL Model Law on Secured Transactions provides a standardized framework for countries to adopt, aiming to harmonize secured transactions law internationally.

Cape Town Convention

The Cape Town Convention is another important international treaty that aims to standardize and simplify the process of securing interests in high-value mobile equipment, such as aircraft and railway rolling stock.

graph TD; A["Cape Town Convention"] --> B["Protocol on Aircraft Equipment"] A --> C["Protocol on Railway Rolling Stock"]

Best Practices

Here are some best practices for navigating international secured transactions:

Understand the local laws of each jurisdiction involved.
Consider international treaties and conventions that may apply.
Incorporate conflict of law rules in security agreements.

For a deeper understanding, consider reading "Secured Transactions Law in International Practice".

Note: Always consult with legal experts specializing in international secured transactions law to ensure compliance and proper structuring of your agreements.