(b) Security rights securing the obligation of the obligor on the negotiable instrument.

Note to the Working Group Under recommendation 24, if A gets a note from B guaranteed by C and then grants a security right in the note to D, D gets a security right in the guarantee as well.

(a) The creation of a security right in proceeds is governed by the law of the State whose law governs governing the creation of the security right in the original encumbered asset from which the proceeds arose and

(d) Automatically upon creation of a security right in the receivable supported by an independent undertaking.

(5) Where, pursuant to paragraph (1) of this article, security has been provided, the person providing such security may at any time apply to the Court to have that security reduced, modified, or cancelled.

(5) Where pursuant to paragraph (1) of this article security has been provided, the person providing such security may at any time apply to the Court to have that security reduced, modified or cancelled.

The law should provide that a security right in a negotiable document is also a security right in the goods represented by the document , provided that the issuer is in possession of the document, directly or indirectly, at the time the security right in the document is created .

The said loans are issued upon the guarantee by two natural persons.

However, the security right is not effective against the depositary bank, the depositary bank has no duty to recognize the secured creditor and no obligations are otherwise imposed on the depositary bank with respect to the security right, without the depositary bank's consent.

(b) Acquisition security right means a security right in an asset that secures the obligation to pay any unpaid portion of the purchase price of the asset or other obligation incurred to enable the grantor to acquire the asset.

To the extent that the value of the encumbered asset is insufficient to satisfy the secured creditor's claim, the secured creditor may participate as an ordinary unsecured creditor.

(a) Rights against guarantors with respect to the negotiable instrument and

The purpose of the scope provisions of the law is to specify the parties, the security rights, the secured obligations and the assets to which the law applies.

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

16. The Convention does not apply to quot accessory quot or quot conditional quot guarantees, i.e., guarantees in which the payment obligation of the guarantor involves more than the mere examination of a documentary demand for payment.

If the value of the product or mass is lower than the value of the goods, the secured creditors share the loss proportionately (e.g. if the value of the cake is 8, each secured creditor gets 4).

The current debt burden adjustment should be retained, as should the current formula for the low per capita income adjustment.

Certainly, governments should not guarantee interbank liabilities that do not affect customer deposits. An insolvency administrator would manage the bank and ensure that all payments for which a state guarantee is given are carried out properly, with refinancing of these payments continuing to take place via the central bank.

The law should provide that, if a security right has been effectively created in a negotiable instrument, the secured creditor also has a security right in accessory rights with respect to the negotiable instrument without a new act of transfer. Such accessory rights may include

As the draft convention did not exclude bank guarantees, draft paragraph 6 should be retained.

The debt burden adjustment should therefore be retained in the methodology.

For the same reason, the existing debt burden adjustment formula should be kept.

67. It was observed that the title of the subsection did not refer to security interests.

Accordingly, the focus of the Convention is on the relationship between the guarantor (in the case of an independent guarantee) or the issuer (in the case of a stand by letter of credit) (hereinafter referred to as quot guarantor issuer quot ) and the beneficiary.

It only gives the secured creditor control for purposes of the effectiveness of its rights against third parties.

I'll vouch for you if you vouch for me.

13. The Convention is designed to include coverage of the quot counter guarantee quot .

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

ABC also maintains a bank account with Lender A and has granted Lender A a security right in the bank account as additional security for the repayment of the loan.

Concerning financial support measures, a loan guarantee fund had been set up in the National Economy Bank which provided credit guarantees for small and medium sized enterprises.

The law should provide that, if a security right in encumbered assets is effective against third parties, the security right in the proceeds is effective against third parties as soon as the right in the proceeds is created provided that

(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.

Possession by a third person constitutes sufficient dispossession only if the third person is not an agent or employee of the grantor and holds possession for or on behalf of the secured creditor.

The law should specify that a security right is created by agreement between the grantor and the secured creditor which is in writing signed by the grantor in accordance with recommendation 12 that 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.

As an English gentleman?

Sponsors?

(p) Assignment means the creation of a security right in a receivable or the transfer of a receivable, whether the transfer is for security purposes or is an absolute outright transfer.

A certificate of sponsorship issued by the sponsoring State must be attached with this application.

If the secured creditor is the depositary bank, the depositary bank's security right has priority over any other security right.

The law should provide that the mutual rights and obligations of the grantor and the secured creditor with respect to the security right, whether arising from the security agreement or by law, are governed by the law chosen by them and, in the absence of a choice of law, by the law governing the security agreement.

Parties, security rights, secured obligations and assets covered

The law should provide that the depositary bank's right to set off against the bank account obligations owed to the depositary bank by the grantor has priority over the security right of another secured creditor other than a secured creditor who has acquired control of the bank account by becoming the customer of the depositary bank with respect to the bank account.

Independent undertakings

Security Interests

Independent undertakings