Financial Collateral

Abstract

Abstract This book draws together all of the property law, regulatory and contractual issues relevant to financial collateral transactions. Collateralized finance transactions played a major role in the bankruptcy of Lehman Brothers and the near-failure of AIG during the early months of the global financial crisis, and they are being increasingly recognised as being integral to the stability of the global financial system. The book provides a detailed legal analysis of the types of transactions which make up collateralised financing transactions and examines them in their commercial context. Recognising that financial collateral transactions are often global in nature, the book covers the legal position in the UK, US, and the EU with specific relevance to practice in the Netherlands, Germany, and Belgium. The book opens with an explanation of how financial collateral transactions are construed, including the relevant standard contract forms. The following chapters discuss the major legal issues and practical considerations, as well as a number of specialist concepts such as safe harbours, 'minimum floors' and securities custody. The book brings together consideration of the European Securities Financing Regulation, the Collateral Directive, and relevant parts of the Bank Recovery and Resolution Directive.