Revised Article 9 of the Uniform Commercial Code has solved the problems associated with perfection of a security interest in a deposit account. It makes it cleaner and easier for a lender or other secured party to establish exclusive control over collateral for purposes of perfection of its interests in a deposit account and hence to protect the collateral from the claims of third parties.
Aviation insurers have plans completely to exclude war risks from their insurance policies. This would have a significant impact not only on airlines, but also on financing banks, which would have to decide whether to withdraw from the airline financing business altogether or take the risk of financing partially uninsured aircraft, thereby assuming such risk.
According to recent changes to the Civil Code, the perfection of a security interest over equipment (through equipment pledge agreements) must meet certain conditions which differ from those for security interests over other assets.
Including: German Market; Legal and Tax Characteristics.
The creation of a new high-speed rail network in Portugal, and the utilization of rail assets by private entities on a concession basis, constitutes an excellent opportunity for private investment. Compatibility between the infrastructure and the rolling stock is crucial, so as to obtain the best results in terms of performance, safety, service quality and costs.
If a lessee defaults on a lease agreement, the lessor has a variety of options under Sections 2A-527 and 2A-528 of the Uniform Commercial Code. Assuming the default meets certain statutory requirements, and assuming the parties have not contracted for a specific manner in which to calculate damages, the lessor can retain the goods or dispose of the goods.
Although Eastern European countries are lucrative new markets for private business jet manufacturers, such jurisdictions are not always satisfactory with regard to security interests. Making Finland the state of registration for the aircraft enables the creation and enforcement of an attractive security package.
As a result of tax benefits available under German tax law and high returns on investment, German ship funds have enjoyed increasing popularity in recent years, attracting a considerable amount of private equity from private investors. However, new rules on the tax treatment of such funds may make it more difficult to structure such funds in a tax-efficient way.
The Savings Deposit Insurance Fund announced the auction of non-performing loan portfolios with a face value of at least $250 million. The final bid date was December 15 2003. However, on December 19 2003 the fund's board of directors decided not to proceed with bidders' negotiations and ended the bidding process.
The new legal framework governing rail assets that form part of the public domain has established new rules and investment possibilities, opening the door for deals involving assets which were formerly off-market. There is now a greater opportunity to conclude transactions such as cross-border leases and sale lease-back structures.
In June 2003 the Savings Deposit Insurance Fund announced the auction of loan portfolios with face value of at least $250 million. Following this first sale, the government intends to sell new portfolios of loans every four months (not including small consumer loans). The sales process should be benefited by recent reforms to the Execution and Bankruptcy Act.
Recently, several amendments were made to the Estonian Property Law Act, including fundamental changes to the right of pledge. The amendments, which have already taken effect, broaden the possible uses of pledges in economic relations.
The first whole business securitization transaction involving forestry assets was recently effected by Finnish-Swedish forest products company Stora Enso Oyj. The transaction involved the restructuring of Stora Enso's holding of approximately 600,000 hectares of Finnish forestland into a newly created Finnish limited company. Bonds totalling €370 million were issued to finance the transaction.
The government recently submitted a letter of intent to the International Monetary Fund, outlining certain measures that it is taking to support the rapid resolution of the overhang of non-performing assets in the banking sector.
In Portugal, mortgages over factories can be extended to cover all machinery, equipment and other chattels pertaining to the factory, as long as the relevant assets are listed in the mortgage deed. This increases the value of the collateral while at the same time linking the security of the credit facility to assets that are essential for the company to carry out its activities.
The Cape Town Convention and Aircraft Protocol provide a sound legal framework for cross-border secured financing of aircraft equipment. The convention subjects mobile security interests, enforcement mechanisms and priority claims and rights to a uniform body of law. It is hoped that this will reduce the costs of aviation credit and thus boost investor and creditor confidence.
Including: Taxation; Legislation; Accounting; International Leasing.
Including: Secured Lending; Leasing.
Including: Background; True Sale; Perfection and Priority; Notice of Assignment; Bankruptcy; Substantive Consolidation; Tax Liability; Authorization, Licences and Collection; Judgments; Consumer Receivables.
The Savings Deposit Insurance Fund (SDIF) has announced its intention to solicit bids for the sale of portfolios of corporate and commercial loans. The SDIF has categorized loan assets from 19 SDIF intervened banks. The programme of asset portfolio sales will draw from the SDIF’s small, medium and large corporate and commercial loans, which comprise approximately 10,000 loan files.