The course deals with collective security arrangements in finance transactions. In a variety of secured finance transactions security is shared among the lenders. This is for example the case in syndicated loans, secured bond issues – including securitisations and covered bonds – and surplus collateral arrangements (overwaarde–arrangementen). The course provides an insight into the legal issues that arise under Dutch law in security arrangements involving a group of creditors. Topics that will be elaborated on include: the practical requirements that a collective security arrangement should meet, the limitations of shared security rights based on co-ownership, collective security arrangements based on a parallel debt or joint and several creditorship, insolvency issues relating to the security agent and the structure and functioning of a surplus collateral arrangement (overwaarde–arangement). Relevant caselaw will also be discussed.
The structuring of collective security arrangements involves complex legal issues which need to be considered carefully by practitioners. By attending the course participants will gain an understanding of the main legal issues of collective security arrangements.
This course is part of the Commercial Law programme.