Martynets, P.V. International security in regard to mobile equipment. Qualification problems

Abstract: In the conditions of the current trans-border commercial turnover the access to financing plays a decisive role, and it makes the security of due performance of obligations especially important. The most efficient means of unification of security transactions is the Convention on International Interests in Mobile Equipment. The article concerns means of qualification of security transactions, the author points out possible contradictions in qualification of security transactions from the standpoint of applicable law. The author also interprets the provisions of Art. 2 of the Convention containing references to the need to apply national law in order to qualify a security transaction as the one providing an international guarantee towards mobile equipment. The author also analyzes the issue of definition apparatus of the Convention with the autonomous qualification of the security transaction. He offers to implement qualification in two stages: based upon the definition apparatus of the Convention (with allows to cover most of the security transaction with due regard to general goals and principles to the Convention) and then based upon the position of the applicable law. The author also points out the need for a reasonable combination of approaches within the qualification procedure and the role of functional approach towards the regulation of security transactions.

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