The assignment of claims and receivables as security

Abstract

Chapter 1 gives an insight of the institute of assignment as a mode of transferring rights and defines property as one of its essential ingredients, distinguishes between property and ownership and highlights the different perceptions to ownership. As the focus of this thesis is the transfer of property rights as security, the first chapter concludes by considering security rights as rights in property. Chapter 2 considers the institute of assignment under Maltese law, the implementation of the FCD, legislation and amendments to the Civil Code as a direct consequence of this directive. This chapter considers the trust, security by title transfer and securitisation and establishes that Maltese law has the necessary legal framework to implement assignment for the purpose of security. Chapter 3 examines the classification of things, contractual claims as property rights, modes of taking security over these intangibles and obstacles to the creation of claims. Various divergences between the two major legal traditions have also been highlighted. Finally, this chapter considers the nature of a contractual claim. Chapter 4 outlines various financing techniques to raise finance and considers the mode of obtaining credit on the security of receivables. The highlight of this chapter is the assignment of different forms of receivables and pitfalls which could diminish the value of the security. It concludes by examining the nature of these intangibles. Chapter 5 considers cross-border assignments, the law applicable to a contract of assignment and examines various relative conventions. Chapter 6 deals with the effect of insolvency on the parties involved in an assignment. It considers the technique of tracing of proceeds and its importance to establish a proprietary claim and concludes by examining the causes of preference and order of priorities under Maltese law.