Australia: Securitization & Structured Finance

The decision serves as a case study of the circumstances when a principal can make a claim in relation to bank guarantees provided as security.

This powerful mechanism at the heart of the SoP Act has led to many arguments in regards to the time of service of a payment claim.

The regimes differ in terms of specific validation rules and action types, even though field names may be similar in some cases.

The validity of flip clauses has been the subject of much insolvency litigation and across different jurisdictions.

The Australian Government is proposing to constrain certain "ipso facto" clauses ‒ which could make flip clauses void.

The new draft amended prudential standard is clearer and simpler than the current APS 120 or the previous proposals.

The new national personal properties security scheme is due to commence in October 2011 and will have widespread impact on the way businesses record and conduct their commercial transactions. The reform promises to merge more than 40 separate Australian wide security registers into a uniform and functionally consistent national registration system.

The full Federal Court, in its clear and well-reasoned decision allowing the appeal in Leveraged Equities Limited v Goodridge [2011] FCAFC 3, has allayed concerns raised by the first instance decision in relation to assignment transactions, especially securitisations.

Partner Andrew Jinks talks to Boardroom Radio about what the introduction of covered bonds will mean for securitisation.