Lending and taking security Country Q&A Tool

Search the Country Q&A in the Finance Global Guide by question and jurisdiction.

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Step 3: Scroll down to view answers and check law stated dates for each jurisdiction.

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Overview of the lending market

1. What have been the main trends and important developments in the lending market in your jurisdiction in the last 12 months?
 

Forms of security over assets

Real estate

2. What is considered real estate in your jurisdiction? What are the most common forms of security granted over it? How are they created and perfected (that is, made valid and enforceable)?
 

Tangible movable property

3. What is considered tangible movable property in your jurisdiction? What are the most common forms of security granted over it? How are they created and perfected?
 

Financial instruments

4. What are the most common types of financial instrument over which security is granted in your jurisdiction? What are the most common forms of security granted over those instruments? How are they created and perfected?
 

Claims and receivables

5. What are the most common types of claims and receivables over which security is granted in your jurisdiction? What are the most common forms of security granted over claims and receivables? How are they created and perfected?
 

Cash deposits

6. What are the most common forms of security over cash deposits? How are they created and perfected?
 

Intellectual property

7. What are the most common types of intellectual property over which security is granted in your jurisdiction? What are the most common forms of security granted over intellectual property? How are they created and perfected?
 

Problem assets

8. Are there types of assets over which security cannot be granted or can only be granted with difficulty? Which assets are difficult or problematic when security is granted over them?
 

Release of security over assets

9. How are common forms of security released? Are any formalities required?
 

Special purpose vehicles (SPVs) in secured lending

10. Is it common in your jurisdiction to take security over the shares of an SPV set up to hold certain of the borrower's assets, rather than to take direct security over those assets?
 

Quasi-security

11. What types of quasi-security structures are common in your jurisdiction? Is there a risk of such structures being recharacterised as a security interest?
 

Guarantees

12. Are guarantees commonly used in your jurisdiction? How are they created?
 

Risk areas for lenders

13. Do any laws affect the validity of a loan, security or guarantee (or the terms on which they are made or agreed)?
 
14. Can a lender be liable under environmental laws for the actions of a borrower, security provider or guarantor?
 

Structuring the priority of debts

15. What methods of subordination are there?
 

Debt trading and transfer mechanisms

16. Is debt traded in your jurisdiction and what transfer mechanisms are used? How do buyers ensure that they obtain the benefit of the security and guarantees associated with the transferred debt?
 

Agent and trust concepts

17. Is the agent concept (such as a facility agent under a syndicated loan) recognised in your jurisdiction?
 
18. Is the trust concept recognised in your jurisdiction?
 

Enforcement of security interests and borrower insolvency

19. What are the circumstances in which a lender can enforce its loan, guarantee or security interest? What requirements must the lender comply with?
 

Methods of enforcement

20. How are the main types of security interest usually enforced? What requirements must a lender comply with?
 

Rescue, reorganisation and insolvency

21. Are company rescue or reorganisation procedures (outside of insolvency proceedings) available in your jurisdiction? How do they affect a lender's rights to enforce its loan, guarantee or security?
 
22. How does the start of insolvency procedures affect a lender's rights to enforce its loan, guarantee or security?
 
23. What transactions involving loans, guarantees, or security interests can be made void if the borrower, guarantor or security provider becomes insolvent?
 
24. In what order are creditors paid on the borrower's insolvency?
 

Cross-border issues on loans

25. Are there restrictions on the making of loans by foreign lenders or granting security (over all forms of property) or guarantees to foreign lenders?
 
26. Are there exchange controls that restrict payments to a foreign lender under a security document, guarantee or loan agreement?
 

Taxes and fees on loans, guarantees and security interests

27. Are taxes or fees paid on the granting and enforcement of a loan, guarantee or security interest?
 
28. Are there strategies to minimise the costs of taxes and fees on the granting and enforcement of a loan, guarantee or security interest?
 

Reform

29. Are there any proposals for reform?
 
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