The UNCITRAL Experience
Corporations, Globalisation and the Law series
This book addresses international harmonisation efforts in secured credit law and asks whether the most comprehensive international standard – the United Nations Commission on International Trade Law (UNCITRAL) Legislative Guide on Secured Transactions (2008) – is suitable for adoption at the national level. It explores the hypothesis that American law and lawyers have shaped the content of the Guide to the extent that it is not suitable for translation into other laws. The clear objective of the Guide is to facilitate secured financing. The possibility of taking security rights over the assets of the debtor is thought to expand the availability as well as to reduce the cost of credit, thereby producing benefits for both creditor and debtor as well as for the overall economy. The Guide is very facilitating and enabling, and permits the creation of security in all sorts of situations. Security is seen as a good thing, through enhancing the availability of lower-cost credit. This perspective colours the approach adopted in the Guide on particular issues though, at the same time, it is recognised that beneficial economic results cannot be achieved by legislation alone – the legal and administrative infrastructure in a particular jurisdiction, including mechanisms for the enforcement of security, play a crucial role. In broad terms, the Guide follows the approach outlined in Article 9 of the American Uniform Commercial Code, and in the Personal Property Security Acts in Canada and New Zealand that have been modelled on Article 9. While the Guide is not an exact mirror...