(c) Obtain security rights in a simple and efficient manner

There is also concern that emergency safeguard measures would be abused with respect to mode 4.

Such guarantees might take the form of financial security deposits, insurance or bonds.

The law should provide that a security right in the proceeds from the drawing under an independent undertaking may be made effective against third parties by

The law should provide that a security right in the proceeds from the drawing under an independent undertaking that has been made effective against third parties

The purpose of the recommendations on basic approaches to security is to ensure that the law covers in a comprehensive and consistent manner all forms of transactions that function as security.

B. Coverage of counter guarantees and confirmations

(f) The possible repercussions for secured transactions and secured creditors in the way in which corporate groups are treated in insolvency.

If the State in which the grantor is located recognizes registration as a method of achieving effectiveness against third parties of a security right in any of the following types of encumbered assets, the law of that State determines whether the effectiveness against third parties of a security right in such encumbered assets has been achieved by registration under the laws of that State

These transactions are essentially non possessory security rights, and they are primarily used in States where the secured transactions law has not yet appropriately recognized non possessory security rights.

(e) Security rights acquired by way of transfer of title and all other types of rights securing the payment or other performance of one or more obligations, irrespective of the form of the relevant transaction and whether ownership of the encumbered assets is held by the secured creditor or the grantor, including the various forms of retention of title, financial leases and hire purchase agreements

The cost of credit will be reduced if security rights can be obtained in an efficient manner.

(jj) Non possessory security right means a security right in (i) tangibles that are not in the actual possession of the secured creditor or another person holding the tangibles for the benefit of the secured creditor, or (ii) intangibles.

There are currently eight plans in the programme, the premiums of which are shared by the Organization and the participants under different cost sharing formulas.

Parties, security rights, secured obligations and assets covered

The law should provide that a security right in a bank account is effective as between the secured creditor and the grantor notwithstanding an agreement between the grantor and the depositary bank limiting in any way the grantor's right to create a security right in its bank accounts.

(ii) Possessory security right means a security right in tangibles that are in the actual possession of the secured creditor or of another person (other than the debtor or other grantor) holding the asset for the secured creditor.

E. The insolvency law should provide that, if a security right was effective against third parties at the time of the commencement of insolvency proceedings, action may be taken after the commencement of the insolvency proceedings to continue, preserve or maintain the effectiveness against third parties of the security right to the extent and in the manner permitted under the secured transactions law.

It would be useful to consider ways in which investment risks would be shared by the parties with the backing of existing or future financial institutions.

These examples represent only a few of the numerous forms of secured credit transactions currently in use, and an effective secured transactions regime must be sufficiently flexible to accommodate many existing methods of financing, as well as methods that may evolve in the future.

(g) Security agreement means an agreement between a grantor and a creditor, in whatever form or terminology, that creates a security right.

In addition, the Guide is intended to cover a broad range of transactions that serve security functions, including those related to possessory and non possessory security rights, as well as transactions not denominated as secured transactions (such as retention of title, transfer of title for security purposes, assignment of receivables for security purposes, financial leases, and sale and leaseback transactions and the like).

Furthermore, the Ministry has already initiated demand side financing pilots (e.g., vouchers for maternal health) as an alternative way of reaching the poor.

A security right will also have little or no value to a creditor unless the creditor is able to enforce the security right in a predictable and efficient manner.

Thus, secured creditors seeking to achieve third party effectiveness by registration for security rights in the specified types of assets and in intangible property will need to comply with the registration system of only one State.

The law should specify that a security right is created by agreement between the buyer, grantor or financial lessee (hereinafter referred to as the grantor ) and the seller, secured creditor or financial lessor (hereinafter referred to as the acquisition financier ) which is in writing and evidences the intent of the grantor to grant a security right or is accompanied by delivery of possession pursuant to the agreement and in accordance with recommendation 9.

(pp) Security interest a right in an asset to secure payment or other performance of one or more obligations.

The purpose of the provisions of the law dealing with creation is to specify the way in which a security right in movable property is created.

Reserved Shortcut

(a) Enable a potential secured creditor to determine, in an efficient manner and with a high degree of certainty prior to extending credit, the priority that the security rights would have over competing claimants and

Some forms of guarantees provided by the host Government may be supported by a guarantee issued by international financial institutions, such as the World Bank.

(a) By control has priority over the rights of all other secured creditors

Under the third method of obtaining control, as between the issuer guarantor or nominated person paying the proceeds and the secured creditor, the secured creditor is the beneficiary of the independent undertaking.

By this law, the following do not participate personally in the costs of health care protection

(a) A security right in an asset that is not effective against third parties is subordinate to a security right in the same asset that is effective against third parties, without regard to the order in which the security rights were created and

The law should provide that, unless the parties otherwise agree, a security right becomes effective as between the parties at the time the security agreement is concluded or at the time the encumbered assets are delivered to the secured creditor.

Effectiveness of the security right against third parties

On the other hand, jealousy is a guarantee of love.

The law should provide that a secured creditor with a security right in fixtures in immovables that has been made effective against third parties under real property law has priority over a secured creditor with a security right in those fixtures that has been made effective against third parties by one of the methods referred to in recommendation 55.

Under recommendations 61 to 66 in A CN.9 WG.VI WP.21 Add.1, a security right in the specified types of asset made effective against third parties by registration is subordinate to a security made effective against third parties by control or possession.

Effectiveness of acquisition security rights against third parties

The provision of such loans, like loan guarantees, might be a way for the host Government to share the project risks without an up front commitment of public funds.

The law should confirm that different methods for achieving third party effectiveness may be used for different items or kinds of encumbered assets, whether or not they are encumbered by the same security agreement or by separate security agreements.

The law should provide that a secured creditor with a security right that is not effective against third parties has towards third parties no right other than as an unsecured creditor priority over unsecured creditors unless the unsecured creditor has taken steps to reduce its claim to a judgement or the grantor has become insolvent .

Note to the Working Group Paragraph (a) would not apply, for example, to a security right in inventory which was made effective against third parties by possession, although the security right in the proceeds in the form of receivables would have to be registered.