Lessons from UNCITRAL for Reforming the South African Legal Framework Concerning Security Rights in Movable Property

This article analyses the South African legal framework governing security rights in movable property with the view to inspire law reform. The analysis is based on a comparison of the current South African framework with the UNCITRAL Legislative Guide on Secured Transactions, a soft-law instrument containing international best practice. The problematic aspects of the South African framework benchmarked against the UNCITRAL Guide are: (1) not having a common legal framework that equally applies to all types of (including quasi-) real security transactions; (2) the scope of the current framework not being comprehensive (inclusive) enough; (3) not having an efficient enough method of creating the security right; (4) the current publicity method, particularly concerning special notarial bonds, being overly cumbersome and not providing effective public notice to third parties; and (5) the current enforcement measures potentially not being the most efficient. Regarding each of these problem areas, the article makes proposals on how the South African legislature could reform the current framework into one that is legally efficient and in step with international best practice.

The Defects of Nigeria’s Secured Transactions in Movable Assets Act 2017 and Their Potential Repercussions on Access to Credit: a Comparative Analysis and Lessons from the Anglo-American Law

It has been sufficiently established in law and finance literature that an effective legal framework that governs non-possessory security transactions is a key component in the realization of financial inclusion and affordable access to credit in market economies. Recently, the Nigerian lawmakers enacted the Secured Transactions in Movable Assets Act 2017 (STMA), which was modelled after the United States’ Article 9 of the Uniform Commercial Code (UCC Article 9) and its unitary-functional approach to security interests. Arguably, some of the STMA’s provisions are defective: they do not reflect the local conditions in Nigeria and are likely to frustrate its section 1 aim of broadening access to credit for individuals and small businesses. The STMA recognizes registration as the main method of perfection: yet there are multiple but unlinked movable collateral registries in Nigeria which ultimately constitute a breeding ground for secret liens. This article argues that the relegation of other perfection methods, such as ‘possession’ and ‘control’, will diminish the economic success of the reformed law. It calls for a reconsideration of the rules governing publicity and the perfection of security interests under the STMA with insights and lessons from the UCC Article 9 and its underlying case law.

Ethereum Blockchain based Smart Contract for Secured Transactions between Founders/Entrepreneurs and Contributors under Start-up Projects

Many implementation of blockchain technology are widely available today. This Project explains how blockchain technology improves efficiency and builds faith in funding process of startup process which affect today’s business and industries. Designing Block chain based a decentralized, distributed ledger, which records transactions or events of funding process in Start-up is discussed.Start –ups facing an issue of raising a required fund. Although there are many sources are available to entrepreneurs who wish to begin new businesses or expand existing ones, like family, friends, friends of friends, bank loan, use of internet, online crowd funding platform and many more. However, to look at the proper distribution and utilization of money and to keep track of it is main problem. This proposed system may provide the solution with blockchain technology for issues related to crowdfunding contract. Through the notion of smart contract automated interaction between and existing transaction system is discussed. A solution for the issues like security, abuse of investor and illegal transactions in crowdfunding process is prompted in this project.The idea behind model is to use ethereum based smart contract for securely and effectively handling connection between fundraisers,vendors and project manager/idea person. Blockchain enabled,distributed platforms is used to avoid fraud and to view proper utilization and distribution of money raised by different contributors.

Recent developments in the law of secured transactions of movables under the new Chinese Civil Code

In May 2020, the first Chinese Civil Code was enacted. This Civil Code incorporates several modifications of the law of secured transactions concerning corporeal movables and receivables. These modifications are made under the influence not only of international conventions, model laws, and legislative guides by the International Institute for the Unification of Private Law and the United Nations Commission on International Trade Law but also of overseas legislation, especially Article 9 of the Uniform Commercial Code. First, a semi-functional approach is taken by the Civil Code. The security agreement includes, in addition to typical security contracts, ‘other contracts having a function of security’. Consequently, the rules concerning the property right of charge (hypothec) are also applicable to reservation of ownership, financial lease, factoring, and other security interests, provided that there is no lex specialis. This leaves a larger space of autonomy for individual parties. Moreover, the new Civil Code intends to construct a more inclusive register by requiring reservation of ownership, financial lease, factoring, and other types of security rights to be registered to be effective against third parties. The future register for ordinary corporeal movables and claims will very possibly be a notice-filing system.

Secured Transactions Laws and Economic Development on American Indian Reservations

Harmonized commercial laws are considered an essential ingredient to commerce and trade and have been called the backbone of American commerce. Key components of these laws are those governing secured transactions. In recent years, Native American tribal governments have moved to adopt commercial codes to increase economic development on their reservations, but many have modified these codes to address challenges to tribal sovereignty and culture. This paper compares reservations that adopted modified secured transaction acts to reservations that adopted uniform laws. We demonstrate that reservations can potentially experience substantial economic gains from either form of adoption.