9 China

2018 ◽  
Author(s):  
Liew Chin-Chong ◽  
Zhou Ying
Keyword(s):  
Contract Law ◽  
Bankruptcy Law ◽  
Over The Counter ◽  
Cross Border ◽  
Otc Derivatives ◽  
The Law ◽  
The Right ◽  
Banks Set

This chapter examines the applicability of the law of set-off in China in cases involving solvent parties and against a party subject to a bankruptcy proceeding. It first explains statutory set-off under the Chinese Contract Law and contractual set-off between solvent parties before discussing set-off against insolvent parties, focusing on the relevant provisions of the Bankruptcy Law and requirements for insolvency set-off. It also considers the procedures for exercising the right to insolvency set-off, set-off right in the context of close-out netting in cross-border over-the-counter (OTC) derivatives transactions, restrictions on unfair preference for creditors and set-off, restrictions on banks' set-off rights against deposits, and set-off vis-a-vis clearing houses. The chapter concludes with an analysis of cross-border issues arising in set-off between solvent parties and against insolvent parties.

8 Chile

2018 ◽  
Author(s):  
Armas M Marcelo
Keyword(s):  
Civil Code ◽  
Bankruptcy Law ◽  
Legal Concept ◽  
Contractual Arrangement ◽  
Cross Border ◽  
Before And After ◽  
The Law ◽  
The Right

This chapter examines the law of set-off in Chile, both before and after insolvency, as well as the alternatives for contractual set-off structures that may be agreed among two or more parties. In Chile, set-off was created as a legal concept primarily on the basis of practical considerations rather than juridical principles. The right to set-off may arise due to a contractual arrangement between the parties or by the operation of law, including the Chilean Civil Code. The chapter first considers set-off in Chile outside insolvency, focusing on set-off by operation of law and contractual set-off, before discussing set-off in insolvency. In particular, it explains the implications of a declaration of liquidation under Chilean Bankruptcy Law and its possible consequences for set-off rights. It also analyses issues arising in cross-border set-off.

21 Mexico

2018 ◽  
Author(s):  
Perezalonso Pablo
Keyword(s):  
Financial Derivatives ◽  
Bankruptcy Law ◽  
Cross Border ◽  
Security Interest ◽  
The Law ◽  
The Right ◽  
Formal Requirements ◽  
Security Agreements

This chapter discusses the law of set-off in Mexico. Under Mexican law, the right of set-off is a form of payment of obligations by which cross-claims may be extinguished up to the amount of the smaller claim. Set-off is not treated as a security interest in Mexico. In order for a set-off to be valid, it is not necessary to satisfy the formal requirements for security interests including executing specific security agreements such as security trusts, pledges, or mortgages. The chapter first considers set-off between solvent parties, focusing on automatic set-off and contractual set-off, before analysing set-off against insolvent parties. In particular, it examines the relevant provisions of the Bankruptcy Law with respect to outstanding obligations resulting from financial derivatives, reportos, and securities lending transactions, along with the retroactivity period for such transactions. Finally, it looks at set-off issues in a cross-border context.

Relaxations of Contractual Privity and the Need for Third Party Rights in Chinese Contract Law

2018 ◽  
Author(s):  
Chen Lei
Keyword(s):  
Direct Action ◽  
Contract Law ◽  
Third Party ◽  
Chinese Law ◽  
The Third ◽  
Right Of Action ◽  
The Law ◽  
The Third Party ◽  
The Right

This chapter examines the position of third party beneficiaries in Chinese law. Article 64 of the Chinese Contract Law states that where a contract for the benefit of a third party is breached, the debtor is liable to the creditor. The author regards this as leaving unanswered the question of whether the thirdparty has a right of direct action against the debtor. One view regards the third party as having the right to sue for the benefit although this right was ultimately excluded from the law. Another view, supported by the Supreme People’s Court, is that Article 64 does not provide a right of action for a third party and merely prescribes performance in ‘incidental’ third party contracts. The third view is that there is a third party right of action in cases of ‘genuine’ third party contracts but courts are unlikely to recognize a third party action where the contract merely purports to confer a benefit on the third party.

18 Italy

2018 ◽  
Author(s):  
Curran Lisa
Keyword(s):  
Civil Code ◽  
Bankruptcy Law ◽  
Cross Border ◽  
Italian Law ◽  
The Will ◽  
The Law

This chapter discusses the law of set-off in Italy. Under Italian law, set-off is recognised as a mechanism for extinguishing an obligation. The Civil Code classifies set-off by operation of law, by intervention of the judge, or by the will of the parties. The Code also lays down particular rights of combination with regard to amounts credited and debited to current accounts, as well as specific rights of set-off with regard to balances of a plurality of accounts or other relationships between a bank and its customer. The chapter first provides an overview of legal and contractual set-off between solvent parties before analysing set-off against insolvent parties. It examines the relevant provisions of the Italian Bankruptcy Law and the question of voidable preferences with respect to set-off. It also looks at issues arising from cross-border set-off between solvent parties and cross-border set-off against insolvent parties.

The Reform of French Contract Law: An Analysis of its Application to Corporate Acquisitions

2017 ◽  
Vol 13 (4) ◽  
Author(s):  
François Barrière ◽  
Pascal Bine ◽  
Olivier Diaz
Keyword(s):  
Case Law ◽  
Legal Framework ◽  
Contract Law ◽  
Business Growth ◽  
Corporate Acquisitions ◽  
Legal Reforms ◽  
The Law ◽  
The Right ◽  
Duty To Inform ◽  
Incomplete Performance

AbstractMore than ten years after the French President at the time first announced it – during the bicentenary celebration of the Napoleonic Code, the reform of the law of contracts has taken shape. The reform’s objectives are to make the law more accessible while increasing legal certainty; objectives often put forward during successive legal reforms without necessarily being met. Its purpose is also to increase the efficiency of French contract law, which will encourage business growth, and is evident, for instance, by the fact that unilateral will is being dealt with several times in the reform. In addition, contractual freedom, captured within the preliminary provisions, sets the tone for a more flexible legal framework. Although the reform codifies several solutions derived from case-law, it also introduces noteworthy innovations such as, in particular, a duty to inform, a legal framework for unforeseeable situations, means of action against unfair clauses in adhesion contracts, or even the ability to reduce the price in the event of incomplete performance of the contract. This reform recognizes contractual freedom, which can – in any event – only be a step in the right direction! This article analyses the modification to French contract law made by Ordinance N° 2016–131 and their impact on corporate acquisitions.

scholarly journals The right to offset the claims in accordance with the law on bankruptcy of the Republic of Serbia and in the region

2021 ◽  
pp. 119-138
Author(s):  
Vladimir Vrhovšek ◽  
Vladimir Kozar
Keyword(s):  
Bankruptcy Law ◽  
Legal Analysis ◽  
Legal Practice ◽  
Legal Provisions ◽  
Legal Consequence ◽  
The Law ◽  
The Republic ◽  
Business Entities ◽  
The Right ◽  
Legal Compensation

This article discusses a concept of legally permitted and limited offsetting in bankruptcy according to the law of the Republic of Serbia, with comparison to earlier regulations where the offsetting occurred by the force of law, as the legal consequence of initiating bankruptcy proceedings. Legal provisions, legal practice, opinion of the jurisprudence on general and special terms about the right to offset the claims in bankruptcy in the Republic of Serbia, as well as in the countries in the region, have been presented. Relevant legal solutions from laws on bankruptcy of Montenegro, Republic of Srpska, Republic of Croatia, and the Republic of Slovenia have been reviewed. Offsetting claims in bankruptcy proceedings are in principle allowed in regional countries as well. Regarding the effect of bankruptcy on the right to offset the claims, there is a great similarity among the legal solutions in regulations of above mentioned countries, except for the Republic of Slovenia. The Republic of Slovenia retained the broadest concept of legal compensation as a legal consequence of initiating bankruptcy proceedings, which constitutes an important difference compared to restrictive solutions of the Serbian bankruptcy law and regional legislation. This article aims to show to the business entities operating in the region, through comparative legal analysis, different conditions and procedure of offsetting in bankruptcy in national legislation, bearing in mind the importance of this legal institution, which allows the creditors to fully collect their claims outside the bankruptcy payment lines, and regardless of the number of available funds in the bankruptcy estate.

scholarly journals Hak Regres Penanggung pada Jaminan Perorangan Dalam Kepailitan

2021 ◽  
Vol 4 (5) ◽  
pp. 1815
Author(s):  
Madeleine Celandine
Keyword(s):  
Third Party ◽  
Bankruptcy Law ◽  
Individual Rights ◽  
Interesting Discussion ◽  
The Law ◽  
Credit Agreement ◽  
The Right

AbstractThe credit agreement as the principal agreement between the debtor and the creditor can acquire additional collateral providing material collateral and individual collateral. Personal collateral for individual rights, which is the agreement of a third party to bind themselves to debtors and creditors involved in credit agreements in accordance with the interests of creditors. In the event that the debtor does not have assets and is unable to repay debts to the creditor, the person responsible for paying the creditors' reserves and is obliged to pay debts to the creditor. The responsibility of the person responsible for compiling the debtor is not carried out by the creditor and the person responsible for the release of their privileges. The guarantor who has agreed to pay the debtor according to the law obtained by the right of regres, namely the right to recover from the payment owned. An interesting discussion about this Guarantee relates to the bankruptcy law regarding the enforcement of the right to regress so that it can be held accountable for receiving payments made. Keywords: Regress Rights; Personal Guarantee; Bankruptcy.AbstrakPerjanjian kredit sebagai perjanjian pokok antara debitor dengan kreditor dapat melahirkan jaminan tambahan berupa jaminan kebendaan dan jaminan perorangan. Jaminan perorangan melahirkan hak perorangan, yang merupakan persetujuan pihak ketiga untuk mengikatkan diri kepada debitor dan kreditor yang terlibat dalam perjanjian kredit demi kepentingan kreditor. Dalam hal debitor tidak memiliki harta kekayaan dan tidak mampu membayar utang kepada kreditor, maka penanggung berperan sebagai cadangan debitor dan wajib membayarkan utang kepada kreditor. Tanggung jawab penanggung lahir ketika debitor tidak melaksanakan kewajiban kepada kreditor dan penanggung telah melepaskan hak istimewa yang dimiliki. Penanggung yang telah menggantikan pembayaran debitor demi hukum memperoleh hak regres, yaitu hak untuk menuntut kembali atas pembayaran yang dimiliki. Pembahasan yang menarik mengenai jaminan ini berkaitan dengan hukum kepailitan mengenai penegakan hak regres agar dapat diakui sebagai utang untuk dapat memperoleh piutang pembayaran yang telah dilakukan. Kata Kunci: Hak Regres; Jaminan Perorangan; Kepailitan.

scholarly journals Court Supervision of the Determination of the Votes at the First General Meeting of Creditors in Estonian Bankruptcy Law

2017 ◽  
Vol 26 ◽  
pp. 76
Author(s):  
Mari Schihalejev
Keyword(s):  
General Meeting ◽  
Bankruptcy Law ◽  
Reasonable Time ◽  
Common Interests ◽  
The Common ◽  
The Law ◽  
Rights And Interests ◽  
The Right ◽  
Current Procedure

 Estonia’s first Bankruptcy Act was passed in 1992 and has been continuously under amendment. Estonian bankruptcy law has provided three distinct procedures for the determination of votes at the first general meeting of creditors: 1) in 1992–2003, the votes were determined only by the trustee; 2) in 2004–2009, the votes determined by the trustee were approved by the court; and 3) under the current law, the court intervenes only if there is a dispute over the determination of the votes. All the amendments notwithstanding, the process of determining the votes under Estonian bankruptcy law remains problematic. The current procedure for the determination of the votes at the first general meeting of creditors does not protect the rights and interests of the creditors, protect the common interests of the creditors, or follow the principle of procedural economy. The law should provide a term that specifies the time by which court rulings on the determination of the votes should be made. Thereby, important decisions could be adopted at the same general meeting, and bankruptcy proceedings could continue. Furthermore, to ensure that disputes are resolved within reasonable time and that the principles of speed and efficiency are honoured, insolvency courts should be created. There is also the problem of determining which issues belong to the disputes about votes. A creditor assigned votes must file proof of claim, together with documents proving the circumstances, with the trustee in three working days. For protecting the creditors’ interests and ensuring a fair and equitable system, the trustee, in co operation with the court, has the right and obligation to verify and evaluate the documents substantiating the claim, in order to prevent unjustified claims from conferring control over the bankruptcy proceedings.

32 Sweden

2018 ◽  
Author(s):  
Stambolovski Zoran
Keyword(s):  
Case Law ◽  
Applicable Law ◽  
Cross Border ◽  
Contractual Arrangements ◽  
The Law ◽  
The Right

This chapter discusses the law of set-off in Sweden. Set-off in Sweden has developed through case law and legal commentary although legislation has been considered necessary in certain areas such as bankruptcy. The legal landscape of set-off can be divided into two sets of principles, those applying outside bankruptcy and those applying in bankruptcy. The chapter first considers set-off between solvent parties, focusing on set-off after a transfer of the principal claim, contractual arrangements, and set-off as security interests. It then examines set-off against insolvent parties, with emphasis on restrictions regarding the right of set-off in bankruptcy, recovery of set-off effected before bankruptcy, and close-out netting. It also analyses cross-border issues with respect to applicable law for set-off outside bankruptcy, applicable law for set-off in bankruptcy, and the conditions for cross-border set-off under Swedish law.

30 South Korea

2018 ◽  
Author(s):  
Hong Suhn-Kyoung ◽  
Cheong Seong-Koo
Keyword(s):  
South Korea ◽  
International Law ◽  
Legal Framework ◽  
Civil Code ◽  
Private International Law ◽  
Cross Border ◽  
The Law ◽  
The Right ◽  
Insolvency Proceedings ◽  
Governing Law

This chapter discusses the law of set-off in South Korea, along with certain restrictions on the exercise of the right of set-off in insolvency proceedings. The legal framework for set-off in South Korea is based on the Civil Code. The courts have also generally supported set-off as a means of satisfying a claim or discharging debt. The Korean Private International Law does not expressly lay down the governing law for set-off. This governing law issue is commonly discussed under two scenarios: set-off is undertaken on the basis of a set-off agreement between the parties; and set-off is undertaken in the absence of an agreement. The chapter first considers the governing law of contractual and non-contractual set-off in South Korea before turning to set-off between solvent parties and set-off against insolvent parties. It also analyses issues arising in cross-border set-off.

Sign in / Sign up

Export Citation Format

Share Document