International Securitization, Factoring, Asset Based Lending and Receivables Finance - The Perfection of Assignments of Receivables in respect of Third Parties and Insolvency Administrators

The sale and assignment of account receivables and trade receivables is widely used throughout the world in banking and financing transactions. This applies both to true sale transactions as well as secured financing transactions. The key issue always is whether the assignment or creation of security contemplated in the relevant documentation is legally valid and enforceable and isolates the benefit of the receivables in favour of the beneficiary of the assignment or security from interference and access by other creditors of the assignor as well as interference by any potential bankruptcy, insolvency or other administrator or receiver of the assignor. 

In this article Dr. Jens Rinze looks in detail at the varied EU regulation and the rules of various European countries that affect such financial transactions.

This material was first published by Thomson Reuters, trading as Sweet & Maxwell, 5 Canada Square, Canary Wharf, London, E14 5AQ, in the Journal of International Banking Law and Regulation as “International Securitization, Factoring, Asset Based Lending and Receivables Finance - The Perfection of Assignments of Receivables in respect of Third Parties and Insolvency Administrators” and is reproduced by agreement with the publishers.