Security rights in proceeds

In the case of assignment of proceeds, as contrasted with transfer, the right to demand payment remains with the original beneficiary, the assignee being given only the right to receive the proceeds of payment, if such payment occurs.

Security rights in rights to proceeds from a drawing under an independent undertaking

1. If proceeds are received by the assignee, the assignee is entitled to retain those proceeds to the extent that the assignee's right in the assigned receivable had priority over the right of a competing claimant in the assigned receivable.

Priority of acquisition security rights in proceeds of inventory

As to the definition of proceeds , language was suggested along the following lines Proceeds includes whatever is received upon the collection or disposition of the receivables or of the proceeds. With regard to the issue of the transfer of rights in proceeds, it was suggested that paragraph (3) should be replaced by wording along the following lines An assignment of receivables also assigns the assignor s rights to their proceeds .

(a) The creation of a security right in proceeds is governed by the law of the State whose law governs governing the creation of the security right in the original encumbered asset from which the proceeds arose and

2. If proceeds are received by the assignor, the right of the assignee in those proceeds has priority over the right of a competing claimant in those proceeds to the same extent as the assignee's right had priority over the right in the assigned receivable of that claimant if

(i) An interest in that real property to the extent that under that law the assignment of a receivable confers such an interest or

It was explained that, in those legal systems, the assignee lacked title in the proceeds it only had a claim against the assignor, and would not have the right to trace the proceeds.

The Working Group recalled its decision to include a definition of proceeds in draft article 5 and to address the issue of the transfer of rights in proceeds in draft article 11 and the issue of priority in proceeds in draft articles 23 and 24.

(c) Registration of a notice in the security rights registry with respect to the proceeds or the underlying receivable or

(ii) The priority of a right in a receivable to the extent that under that law an interest in the real property confers such a right or

(ee) Proceeds means whatever is received in respect of encumbered assets, including what is received as a result of sale, lease or other disposition or collection, civil and natural fruits, dividends, distributions, insurance proceeds and claims arising from damage or loss, and tort or warranty claims.

Yield

In order to address those concerns, it was generally agreed that paragraph (9) should provide a definition of proceeds , while the issue of the transfer of rights in proceeds could be dealt with in draft article 11 and the issue of priority in proceeds could be dealt with in draft articles 23 and 24.

quot (9) Priority with regard to the receivables includes priority with regard to cash received upon collection or other disposition of the receivables, provided that the cash may be identified as proceeds of the receivables. quot

Particularly, the enterprise s own equity instruments shall not include the contracts which are the basis for the enterprise to charge or pay the equity instruments of its own.

Note to the Working Group Under the definition of control in the terminology section, the secured creditor has control of an independent undertaking where (i) the issuer guarantor or nominated person paying the proceeds is the secured creditor (ii) the issuer guarantor or nominated person paying the proceeds has acknowledged the security right in the proceeds from the drawing under an independent undertaking or (iii) the secured creditor is the beneficiary.

The law should provide that a beneficiary may grant a security right in proceeds from a drawing under an independent undertaking.

Another concern was that paragraph (9) might be read as conferring priority in proceeds independently of priority in the receivables.

(a) The assignor has received the proceeds under instructions from the assignee to hold the proceeds for the benefit of the assignee and

Family earnings

Total Profits

3. Nothing in paragraph 2 of this article affects the priority of a person having against the proceeds a right of set off or a right created by agreement and not derived from a right in the receivable.

This right is essentially the right of the emitters to occupy, use and benefit from environmental capacity resources.

By March 31, 2004, the Commission des droits de la personne et des droits de la jeunesse had received 564 staffing analyses.

Net gain on exchange

The budgets do not indicate actual revenues received, which have generally turned out to be far less.

It also included the part that the profits allocated to the overseas investors belonged to the earnings from equity investments of dividends and bonus generated by the retained earnings which had been achieved for what was actually allocated to the investors by the enterprises held by Chinese residents.

(b) The effectiveness against third parties and the priority over the rights of competing claimants of a security right in proceeds are governed by the same law as the law of the State whose law governs governing the effectiveness against third parties and the priority over the rights of competing claimants of a security right in original encumbered assets of the same kind as the proceeds.

(a) The proceeds of serious offences, or assets of a value equivalent to that of such proceeds

Special rules on proceeds

Proceeds derived from the offence

(ii) Control of the proceeds of crime

(3) An assignment of receivables is effective to transfer the rights to cash received upon collection or other disposition of receivables, provided that the cash may be identified as proceeds of the receivables.

(c) If payment in respect of the assigned receivable is made to another person over whom the assignee has priority, the assignee is entitled to payment of the proceeds and also to goods returned to such person in respect of the assigned receivable.

(5)the contractual rights to non derivative instruments which must be settled or may be settled by the enterprise with its own equity instruments in the future, whereby the enterprise will receive an unfixed amount of equity instruments of its own according to the said contract

Under the third method of obtaining control, as between the issuer guarantor or nominated person paying the proceeds and the secured creditor, the secured creditor is the beneficiary of the independent undertaking.

(i) Identification, freezing, seizure and confiscation of the proceeds of crime

(a) If payment in respect of the assigned receivable is made to the assignee, the assignee is entitled to retain the proceeds and goods returned in respect of the assigned receivable

Chapter VI Income Distribution

It may be that, as between the grantor and the secured creditor, the secured creditor has agreed to treat the proceeds as encumbered assets.

(a) The secured creditor with a security interest in those cash proceeds consents to such use or disposal or

2. The assignee may not retain more than the value of its right in the receivable.