Asset-Based Financing: Quasi-Security Devices
About This Course
At the end of the course, participants will:
1. Understand the legal difference between true security and quasi- security mechanisms in asset-based financing and why it might matter;
2. Become familiar with and critically evaluate how the courts distinguish between the two;
3. Appreciate the importance of quasi-securities as mechanisms of asset-based finance;
4. Demonstrate an awareness and understanding of how the various quasi-security devices operate to perform a similar function to true security and whether there are any differences (for example on enforcement);
5. Have some appreciation of different approaches to quasi-security in other common law countries;
6. Develop an awareness and understanding of how the various retention of title transactions are structured in practice and their legal consequences; and
7. Develop an awareness and understanding of how the various transfer of title quasi-security devices are structured in practice and their legal consequences.
What You'll Learn
This course critically examines so-called 'quasi-security' devices: legal structures that perform the function of personal property security, whilst not being 'true' security in the legal sense. These devices entail the retention of title or absolute transfer of title (rather than the grant of a security interest) and, like 'true' security, secure the performance of an obligation. Hence, consideration will be given to retention of title devices (ROT or 'Romapla' clauses) in the supply of goods to manufacturers or to retailers as stock-in-trade, conditional-sale, hire-purchase, finance-leasing. Absolute transfer of title devices exemplified by receivables financing (factoring, securitisation) will also be covered.
Entry Requirements
A good Bachelor's or Juris Doctor degree in Law