The Hague Securities Convention is Happening Now? New Choice-of-Law Rules for Security Interests in Intermediated
The LSTA was pleased to present:
THE HAGUE SECURITIES CONVENTION IS HAPPENING NOW? NEW CHOICE-OF-LAW RULES FOR SECURITY INTERESTS IN INTERMEDIATED
The Hague Securities Convention was promulgated in 2006 by the Hague Conference on Private International Law and has been ratified by the US and will go into effect on April 1, 2017. Our expert speakers provided a guide through the Convention and its impact on secured lending issues for security interests in securities, includiing:
- How the Convention addresses choice-of-law issues that arise under current law when securities are held with a bank, broker or clearing corporation through the so-called “indirect holding system” (such issues include determining the law that governs the perfection, priority, and enforcement of a security interest in securities credited to a securities account).
- How the Convention will impact current practices under Articles 8 and 9 of the Uniform Commercial Code (for example, the location for perfection of a security interest in securities account by filing or other recordation may be affected in some transactions).
- Drafting suggestions for securities account agreements and securities account control agreements so that they reflect the Convention.
Sandra M. Rocks, Special Counsel, Cleary, Gottlieb, Steen & Hamilton LLP
Edwin E. Smith, Partner, Morgan, Lewis & Bockius LLP
Steven O. Weise, Partner, Proskauer Rose LLP