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Look-through Approach
The look-through approach is a conflict of laws rule applied to the proprietary aspects of security transactions. It is an application of the traditional ''lex rei sitae'' (where the property is situated) test. The approach is feasible where registered securities are held entirely through non-fungible accounts, in which securities attributable to an intermediary's individual customers are separately identified and credited to separate designated accounts in the books of the intermediary. Under such structures, the investor's interest will be recorded at each level and it is appropriate to treat the investor's interest as located at the place indicated under the traditional ''lex rei sitae'' test. Difficulties of application The look-through approach has lost applicability due to the increasing complexity of cross-border securities transactions brought about by the introduction of an indirect holding system. There are severe conceptual, legal and practical difficulties with conti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Conflict Of Laws
Conflict of laws (also called private international law) is the set of rules or laws a jurisdiction applies to a case, transaction, or other occurrence that has connections to more than one jurisdiction. This body of law deals with three broad topics: ''jurisdiction'', rules regarding when it is appropriate for a court to hear such a case; ''foreign judgments'', dealing with the rules by which a court in one jurisdiction mandates compliance with a ruling of a court in another jurisdiction; and '' choice of law'', which addresses the question of which substantive laws will be applied in such a case. These issues can arise in any private-law context, but they are especially prevalent in contract law and tort law. Scope and terminology The term ''conflict of laws'' is primarily used in the United States and Canada, though it has also come into use in the United Kingdom. Elsewhere, the term ''private international law'' is commonly used. Some scholars from countries that use ' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Security (finance)
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition. In some jurisdictions the term specifically excludes financial instruments other than Stock, equities and Fixed income instruments. In some jurisdictions it includes some instruments that are close to equities and fixed income, e.g., Warrant (finance), equity warrants. Securities may be represented by a certificate or, more typically, they may be "non-certificated", that is in electronic (Dematerialization (securities), dematerialized) or "book entry only" form. Certificates may be ''bearer'', meaning they entitle the holder to rights under the security merely by holding the security, or ''registered'', meaning they enti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lex Rei Sitae
''Lex rei sitae'' is a legal doctrine of property law and of International private law. It is Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known as Latium) around present-day Rome, but through the power ... for "the law where the property is situated". The law governing the transfer of title to property is dependent upon, and varies with, the ''lex rei sitae''. LEX REI SITAE: "...real estate or immovable property is exclusively subject to the laws of the government within whose territory it is situated.".US Legal.Com - Lex Rei Sitae Law and Legal Definition Notes References *Supreme Court of Illinois, Peet v. Peet, October 23, 1907 Property law Legal rules with Latin names {{Law-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Non-fungible Account
In economics, fungibility is the property of a good or a commodity whose individual units are essentially interchangeable, and each of whose parts is indistinguishable from any other part. Fungible tokens can be exchanged or replaced; for example, a $100 note can easily be exchanged for twenty $5 bills. In contrast, non-fungible tokens cannot be exchanged in the same manner. For example, gold is fungible because its value doesn’t depend on any specific form, whether of coins, ingots, or other states. However, a unique item such as a gold statue by a famous artist would not be considered fungible. In short, a thing is fungible when all equivalent amounts of that thing are interchangeable. Fungible commodities include sweet crude oil, company shares, bonds, other precious metals, and currencies. Fungibility refers only to the equivalence and indistinguishability of each unit of a commodity with other units of the same commodity, and not to the exchange of one commodity ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Indirect Holding System
The indirect holding system (also multi-tiered holding system) is a system of securities clearance, settlement and ownership system where ownership information is held electronically as a book entry. It consists of one or more tiers of intermediaries between issuer and investor. It is an evolution from the "direct holding system" in which owners of securities had a direct relationship with the issuer. The system is made up of various tiers, often with an increasing number of entries involved in each of the tiers. The top tier comprises "national" and " international central securities depositories" (CSDs), where large pools of securities of different issuers are immobilized or otherwise concentrated. The next tier consists of a limited number of financial institutions, brokers, depositories and other professional investors who have direct contractual relationships with the CSDs and who hold their interests in securities in book-entry accounts with a CSD. These intermediaries (s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Collateral Taker
Collateral may refer to: Business and finance * Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan * Marketing collateral, in marketing and sales Arts, entertainment, and media * ''Collateral'' (album), an album by NERVO (2015) * ''Collateral'' (film), a thriller film starring Tom Cruise and Jamie Foxx (2004) * "Collateral" (''Justified''), an episode of the TV series ''Justified'' * ''Collateral'' (TV series), a four-part BBC television series (2018) Anatomy * Collateral ligament * a branch in an anatomical structure, e.g. the superior ulnar collateral artery or the prevertebral ganglia, also known as collateral ganglia * Collateral circulation, the alternate circulation around a blocked artery or vein via another path, such as nearby minor vessels See also * Collateral contract * Collateral damage * Collateral (kinship) * Collateral estoppel * Collateral management * Collateral source rule * Collateral succession * Col ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Systemic Risk
In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to the risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system.Banking and currency crises and systemic risk George G. Kaufman (World Bank), It can be defined as "financial ''system'' instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries". It refers to the risks imposed by ''interlink ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured. Contract law, like other areas of private law, varies between jurisdictions. The various systems of contract law can broadly be split between common law jurisdictions, civil law jurisdictions, and mixed law jurisdictions which combine elements of both common and civil law. Common law jurisdictions typically require contracts to include consideration in order to be valid, whereas civil and most mixed law jurisdictions solely require a meeting of the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Property Law
Property law is the area of law that governs the various forms of ownership in real property (land) and personal property. Property refers to legally protected claims to resources, such as land and personal property, including intellectual property. Property can be exchanged through contract law, and if property is violated, one could sue under tort law to protect it. The concept, idea or philosophy of property underlies all property law. In some jurisdictions, historically all property was owned by the monarch and it devolved through feudal land tenure or other feudal systems of loyalty and fealty. History Though the Napoleonic code was among the first government acts of modern times to introduce the notion of absolute ownership into statute, protection of personal property rights was present in medieval Islamic law and jurisprudence, and in more feudalist forms in the common law courts of medieval and early modern England. Theory The word ''property'', in everyday ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Place Of The Relevant Intermediary Approach
The Place of the Relevant Intermediary Approach (PRIMA) is a conflict of laws rule applied to the proprietary aspects of security transactions, especially collateral transactions. It is an alternative approach to the historically important look-through approach, and was in its earliest form the basis for the initial draft of the Hague Securities Convention. Unlike the look-through approach, PRIMA does not look through the various tiers of intermediaries to the underlying securities. Rather, it stops at the level of the intermediary immediately above the parties to the pledge or transfer. Its important advantage is that it subjects an investor's interest in securities to the law of a single jurisdiction, even where evidence of underlying securities is situated in many different countries, or where various issuers in a single portfolio is involved. This provides certainty and clarity for all parties involved. It is a matter of debate whether PRIMA constitutes a development of the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hague Securities Convention
The Convention on the law applicable to certain rights in respect of securities held with an intermediary, or Hague Securities Convention is an international multilateral treaty intended to remove, globally, legal uncertainties for cross-border securities transactions. The Convention was drafted under the auspices of the Hague Conference on Private International Law, which as resulted in several Conflict of Laws conventions. Switzerland, Mauritius and the United States have ratified the convention, which entered into force on 1 April 2017. The European Commission recommended in July 2006 that its member states sign the Convention, but this recommendation was later withdrawn. The need for the Convention The Convention is largely a response to the move in recent times in most nations from a purely direct holding system to a mixed direct and indirect holding system. The reforms, though largely beneficial, have created an alarming level of uncertainty as to the question ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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