The law applicable to security interests in intermediated securities under OHADA law / / Justin Monsenepwo.

• Superior document: Studien zum ausländischen und internationalen Privatrecht
• VerfasserIn: Monsenepwo Mwakwaye, Justin,
• Place / Publishing House: Tübingen : : Mohr Siebeck,, [2022]; ©2022
• Year of Publication: 2022
• Edition: 1st ed.
• Language: English
• Series: Studien zum ausländischen und internationalen Privatrecht.
• Physical Description: 1 online resource (451 pages)

In recent decades, the technical handling of custody business in the OHADA region has undergone a lasting change. There has been a shift from a direct to an indirect holding system, in which the interests of an investor in respect of the underlying securities are recorded in the books of an intermediary (such as a bank or a securities firm). Under the law of all states within the OHADA region, the traditional conflict of laws rule for determining the enforceability of a securities pledge that occurs in the indirect holding system is the lex rei sitae (or the lex cartae sitae or the lex situs ) rule. However, the traditional lex rei sitae rule cannot be appropriately applied to a system where the dematerialised securities are held through multiple layers of intermediaries located in different jurisdictions. Yet, until the intermediated system and the collateralisation of intermediated securities in the OHADA region will continue to operate in somewhat legally murky waters, leading to more instability in the financial markets. Therefore, Justin Monsenepwoaims to find an appropriate and consistent approach that reflects the reality of the indirect holding system in the OHADA region. "This publication is essential reading for policy makers, academics, market participants, and legal practitioners in the OHADA region and beyond. I am convinced that its in-depth analysis of OHADA's substantive and conflict of laws rules will go a long way in filling the gap in this area and encouraging further development in the future." Christophe Bernasconi, Secretary General of the "Hague Conference on Private International Law" - HCCH in the foreword

Table of Contents

Cover -- Title -- Preface -- Foreword -- Summary of Contents -- Contents -- Tables and Figures -- Abbreviations -- General Introduction -- Part I - The Intermediary System in the Ohada Region -- Chapter 1: The Organisation for the Harmonisation of Business Law in Africa -- A. Historical Perspective -- B. Purpose of Ohada -- I. Contribution to Regional Integration in Africa -- II. Facilitating Investments and Improving the Economies of Its Members -- III. Unification in lieu of Harmonisation -- C. Ohada's Institutional Framework -- I. The Conference of Heads of State and Government -- II. The Council of Ministers -- 1. Composition -- 2. Functioning -- 3. Duties -- III. The Permanent Secretariat -- 1. Organisation -- 2. Duties -- IV. The Common Court of Justice and Arbitration (CCJA) -- 1. Composition -- 2. Functions -- 3. Challenges faced by the CCJA and Trends in the CCJA's Case Law -- a) Challenges faced by the CCJA -- b) Geographical Origins of the Appeals lodged before the CCJA -- V. The Regional School for Magistrates -- D. Instruments of OHADA -- I. Uniform Acts -- 1. Object of the Uniform Acts -- 2. The Process of Adopting Uniform Acts -- a) Drafting -- b) Advisory Opinion of the CCJA -- c) Final Adoption -- d) Exclusion of Legislative Authorities -- 3. Effects of the Uniform Acts on National Law -- a) Direct Applicability of the Uniform Acts -- b) Interpretation of Article 10 by the CCJA -- 4. Current Uniform Acts -- 5. Uniform Acts "in the Pipeline" -- II. Regulations -- III. Chronological Table of the Uniform Acts and the Regulations -- E. Summary and Evaluation -- Chapter 2: Basic Structure and Functioning of the Indirect Holding System in the OHADA Region -- A. Development of Commercial Practices in the OHADA Region regarding the Holding of Securities -- I. Traditional Direct Holding of Securities under OHADA Law.

1. Presentation of the Traditional Direct Holding System under OHADA Law -- 2. Advantages and Disadvantages of the Direct Holding System -- II. The Intermediated System under OHADA Law -- 1. Development in Commercial Practices -- 2. Regional and National Legislative Developments in Respect of the Law of Securities -- a) Status Quaestionis under OHADA Law -- (1) Revision of Uniform Acts at the Ohada Level -- (2) Centralisation and Immobilisation of Securities -- (3) Dematerialisation of Securities -- b) The New Act on the Dematerialisation of Securities under the Law of Cameroon -- (1) Presentation of the New Act on the Dematerialisation of Securities -- (2) Modalities for the Dematerialisation of Securities -- B. Basic Structure of Ohada's Indirect Holding System Compared to Existing Models of Intermediated Systems -- I. Introduction -- II. The Individual Ownership Model -- III. The Co-Ownership Model -- IV. The Trust Model -- V. The Security Entitlement Model -- VI. The Contractual Model -- VII. Identifying the Investor: Transparent and Non-transparent Systems -- 1. Introduction -- 2. Transparent Systems in Which the Holdings are Held in an Account with the CSD -- 3. Transparent Systems in Which the Holdings of the Investor are Identified in an Intermediary Account with the CSD -- 4. Transparent Systems in Which an Investor's Holdings are Held by an Intermediary in an Omnibus Account at the CSD -- C. Summary and Evaluation -- Part II - Reports on National, Regional, and International Substantive Law Rules in Respect of Security Interests in Intermediated Securities -- Chapter 1: The Pledge of Securities Accounts under the OHADA Uniform Act on Security Interests -- A. Introduction: Relevance of the 2010 Revision of the Uniform Act on Security Interests -- B. Scope of Application of Articles 146 et seq of the Uniform Act on Security Interests.

I. Definition of the Pledge of Securities Accounts -- 1. Limited Material Scope -- 2. Pledges of "Securities Accounts" rather than of "Intermediated Securities" -- II. Relationship between the Provisions of the Different Uniform Acts applying to the Pledge of Securities Accounts -- 1. Provisions applying to the Pledge of Securities -- 2. Prevalence of the Uniform Act on Security Interests -- C. How a Pledge of a Securities Account is Constituted -- I. Requirement of a Declaration establishing the Pledge -- 1. The Declaration establishing the Pledge -- 2. Elements to Be Included in the Declaration establishing the Pledge -- a) Date of the Declaration -- b) Other Elements to Be Included in the Declaration -- II. The Requirement of a Prior Contract -- D. Basis of the Pledge -- I. The Contents of the Securities Account -- 1. Intermediated Securities located in the Securities Account -- a) Financial Instruments recorded in the Pledged Securities Account -- b) Inalienable Securities -- c) Securities Whose Transfer is Subject to an Approval Clause -- 2. Sums of Money located in the Pledged Securities Account -- II. Proof of the Content of the Pledged Securities Account -- 1. Special Account Open in the Name of the Account Holder -- 2. The Certificate of Pledge -- E. Evolution of the Pledged Securities Account -- I. Introduction -- II. Inclusion of Products and Benefits deriving from the Pledged Securities Account -- III. Substituted Securities -- 1. "New" Securities -- 2. Sums of Money resulting from the Sale of Securities located in the Pledged Account -- F. Right to Use the Intermediated Securities recorded in the Pledged Securities Account -- I. Right of Use -- 1. Scope of the Right of Use under Article 151(1) First Sentence of the Uniform Act on Security Interests.

2. Absence of Provisions in Respect of the Replacement of the Used Collateral Securities -- II. Right of Retention -- 1. Scope of the Right of Retention -- 2. The Relationship between the Right of Retention and the Right of Use -- G. Realisation of the Pledge -- I. Introduction -- II. Formal Notice -- III. Enforcement -- 1. Introduction -- 2. Realisation by Selling the Intermediated Securities -- 3. Realisation by Appropriating the Intermediated Securities recorded in the Pledged Securities Account -- H. Summary and Evaluation -- Chapter 2: Security Interests in Intermediated Securities under the Geneva Securities Convention -- A. Presentation of the Geneva Securities Convention -- I. The Geneva Securities Convention -- II. Objectives and Guiding Principles of the Geneva Securities Convention -- III. Current Status of the Geneva Securities Convention -- B. Scope of Application of Chapter V of the Geneva Securities Convention -- I. Introduction -- II. Personal Scope -- III. Material Scope -- 1. Types of Collateral -- 2. Relevant Obligations -- C. Recognition of Title Transfer Collateral Agreements -- I. History of the Provision in Article 32 of the Geneva Securities Convention -- II. Analysis of Article 32 of the Geneva Securities Convention -- D. Enforcement under Article 33 of the Geneva Securities Convention -- I. History of Article 33 of the Geneva Securities Convention -- II. Analysis of the Enforcement Provision in the Geneva Securities Convention -- 1. Overview of the Realisation Methods -- 2. Realisation by way of Sale of the Collateral Securities -- 3. Realisation by Appropriation -- 4. Close-Out Netting -- 5. Obstacles to the Realisation of the Collateral in Some Jurisdictions -- E. Right to Use Collateral Securities under Article 34 of the Geneva Securities Convention -- I. History of Article 34 of the Geneva Securities Convention.

II. Analysis of Article 34 of the Geneva Securities Convention -- 1. Use of Collateral Securities -- 2. Replacement of the Used Collateral Securities -- 3. Protecting the Collateral Taker's Rights -- F. Top-Up or Substitution of Collateral -- I. General Overview and History of the Top-Up Rule in Article 36 of the Geneva Securities Convention -- II. Analysis of Top-Up Rule in Article 36 of the Geneva Securities Convention -- 1. Rule Number 1: Top-Up -- a) Introduction -- b) The Situation provided in Article 36(1)(a)(i) of the Geneva Securities Convention -- c) The Situation provided in Article 36(1)(a)(ii) of the Geneva Securities Convention -- d) The Situation provided in Article 36(1)(a)(iii) of the Geneva Securities Convention -- 2. Rule Number 2: Substitution -- 3. Scope of Protection -- III. Certain Insolvency Provisions Disapplied -- G. Summary and Evaluation -- Chapter 3: The EU Legislation on the Collateralisation of Intermediated Securities -- A. A Bird's Eye View of the EU Legislative Framework on Intermediated Securities -- B. The Collateralisation of Intermediated Securities under the Settlement Finality Directive -- I. History of the Settlement Finality Directive -- II. System and Participants -- III. Collateral Transaction -- IV. Insolvency Proceedings and Collateral Security -- 1. Provisions regarding Insolvency Proceedings -- 2. Collateral Security and Legal Certainty -- C. Collateral Agreements on Intermediated Securities under the Financial Collateral Directive -- I. Objectives of the Financial Collateral Directive -- II. History of the Financial Collateral Directive -- 1. Preparatory Work -- 2. Adoption and Implementation -- 3. Amendments -- III. Scope of Application -- 1. Personal Scope -- a) History of the Provision in Article 1(2) of the Financial Collateral Directive.

b) Description of the Personal Scope of Application of the Directive.