Insolvency law

(b) Insolvency law

(b) Insolvency law

(e) In the area of insolvency, the UNCITRAL Model Law on Cross Border Insolvency and the UNCITRAL Legislative Guide on Insolvency Law

(4) The insolvency law should specify that where a security interest is effective and enforceable under law other than the insolvency law, it will be recognized in insolvency proceedings as effective and enforceable.

The insolvency law should specify that, if a security right is entitled to priority under law other than the insolvency law, that priority continues unimpaired in insolvency proceedings except if, pursuant to the insolvency law, another claim is given priority.

The insolvency law should specify that

(62) The insolvency law should permit the insolvency representative to determine the treatment of any assets that are burdensome to the estate.

(46) The insolvency law should specify that, on commencement of insolvency proceedings add a, b, c, d, e

Possible future work in the area of insolvency law

(ii) Macedonia insolvency law reform (16 17 December 2004)

(49) The insolvency law should specify that the measures applicable on commencement of insolvency proceedings remain effective throughout those proceedings until

C. Except as provided in D , the insolvency law should provide that an asset of the estate acquired after the commencement of an insolvency proceeding is not subject to a security right created by the grantor before the commencement of the insolvency proceeding.

This note describes some of the activities of international organizations active in the field of insolvency law.

(7) In order to design an effective and efficient insolvency law, the following common features should be considered

(137) The insolvency law should specify that a party in interest have a right to be heard on any issue in the insolvency proceedings that affects its rights, obligations or interests.

Where law other than the insolvency law does not include such time periods, the stay applicable on commencement would operate to prevent the security interest being made effective.

III considers UNCITRAL well suited to becoming involved in a project of this complexity and wide ranging significance, given UNCITRAL's proven record with respect to the UNCITRAL Model Law on Cross Border Insolvency and the subsequent UNCITRAL Legislative Guide on Insolvency Law.

1346 2000 on Insolvency Proceedings nor the UNCITRAL Model Law on Cross Border Insolvency addresses the issue.

(58) The insolvency law should permit the insolvency representative to sell assets that are encumbered or subject to other interests free and clear of those encumbrances and other interests, outside the ordinary course of business, provided that

J. The insolvency law should provide that, if a holder of a security right in an asset of the insolvency estate has subordinated its priority unilaterally or by agreement in favour of any existing or future competing claimant, such subordination is binding in insolvency proceedings with respect to the grantor.

Furthermore, in the course of developing both of these texts, UNCITRAL has formed links with key participants in the area of insolvency law, including Member and non member States, intergovernmental and non governmental organizations, as well as individual insolvency experts.

The insolvency law should provide that an asset of the estate acquired after the commencement of an insolvency proceeding with respect to the grantor is subject to a security right created by the grantor before the commencement of the insolvency proceeding to the extent the asset is proceeds (whether cash or non cash) of an encumbered asset which was an asset of the grantor before the commencement of the proceeding.

At that session, the Commission agreed that secured credit law was an important subject and had been brought to the attention of the Commission at the right time, in particular in view of its close link with the work of the Commission on insolvency law.

(53) The insolvency law should specify that encumbered assets may be further encumbered, subject to the requirements of recommendations 65, 66 and 67.

(ll) Insolvency estate means assets and rights of the debtor that are controlled or supervised by the insolvency representative and subject to the insolvency proceedings.

Insolvency

In addition, in Australia, the insolvency legislation provides for the liability of a holding (parent) company for the debts of a subsidiary company that became insolvent if it is established that the subsidiary was permitted by the parent to engage in insolvent trading.

The insolvency law should provide that, in the case of the insolvency proceedings of the grantor, the acquisition financier has the rights and duties of a holder of a security right.

For example, it works with other international organizations (e.g. UNCITRAL, World Bank, IMF) to enhance certainty through insolvency law reform and, in particular, members have been active in developing proposals to UNCITRAL on future work on insolvency law.

(iii) The insolvency administrator.

Insolvency Guide recommendations

The Section on Insolvency, Restructuring and Creditors' Rights (SIRC) of the Legal Practice Division of the International Bar Association undertakes a number of activities in the area of insolvency law.

Subject to the Commission's decision on a possible future work in the area of insolvency law (see above, paras. 28 and 29), arrangements have been made for a one week session of Working Group V (Insolvency Law) in the autumn of 2006, as reflected in paragraph 53 below.

Directors' and officers' responsibilities and liabilities in insolvency and pre insolvency cases

(nn) Insolvency representative means a person or body responsible for administering the insolvency estate.

The III urges UNCITRAL to develop model guidelines on director and officer responsibilities and liabilities in insolvency and pre insolvency cases.

Creditors in insolvency proceedings

International Insolvency Institute (III)

The insolvency law should provide that, in the case of insolvency proceedings with respect to a buyer under a title retention arrangement, a grantor or a financial lessee, the seller, purchase money lender or financial lessor has the rights and duties of a holder of a security right.

Recognizing the need for cooperation and coordination between international organizations active in the field of insolvency law reform to ensure consistency and alignment of that work and to facilitate the development of international standards,

(50) The insolvency law should specify that, upon application to the court, a secured creditor should be entitled to protection of the value of the assets in which it has a security interest.

See the UNCITRAL Legislative Guide on Insolvency Law, Part Two, chapter V, section C, paras. 82 92, available at http www.uncitral.org en index.htm.

UNCITRAL has a proven track record in insolvency law work, developing both the Model Law on Cross Border Insolvency and the Legislative Guide on Insolvency Law in comparatively short periods of time.

Domestic insolvency law treatment