This course will focus on alternative forms of security. Alternative forms of security are those ways of getting security by a creditor that cannot be categorized as either security in rem (goederenrechtelijke zekerheid) or personal security (persoonlijke zekerheid). Alternative forms of security range from contractual subordination of claims, to negative and positive pledges and comfort letters or letters of intent. With these forms of security it is crucial to know how they can be a worthwhile addition to the existing security package and which (liability) risks exist when providing them. During the course we will take a deep dive into
- effective ways of drafting relevant forms of alternative security
- addressing liability issues
- dealing with litigation and bankruptcy risks.
This course is unique because it not only gives the participants an overview of the complex field of alternative forms of security, but it also enables the participants to learn how to spot pitfalls when drafting and/or interpreting a clause based on actual (court) cases and precedents.
Topics that will be discussed:
- Which alternative forms of security exists
- How alternative forms of security can provide an effective addition to a security package
- Drafting tips and relevant case law for interpretation of existing agreements
- Liability and litigation risks connected with alternative forms of security