Invalidation of Securities upon Insolvency
OverviewThis title is a systematic and critical examination of the many and varied statutory provisions which may operate to invalidate securities taken by credit-providers when a borrower runs into financial difficulties. The book contains practical advice and commentary, having been written by a leading insolvency practitioner with over 20 years experience in the area, first as a Chartered Accountant and registered liquidator and later as a partner in a major Australian legal firm. It is particularly topical in the current climate of rising interest rates with lenders anxious to ensure that securities taken by them remain intact if their borrowers default. On the flip-side of the coin however, where a borrower does fall into financial difficulties, a bankruptcy trustee or company liquidator will scrutinise the legislative provisions for ways to have the securities declared void. The author analyses significant parts of the law in this area, which have never been coherently dealt with elsewhere, and makes a conscious effort to review both the legislative provisions and the more recent judicial pronouncements. He finds what he believes are numerous anomalies or "loop holes". An important book for: practitioners (both accountants and lawyers practising in the insolvency field), banks and other credit-providers who have a financial stake in ensuring that securities taken by them are not disturbed upon the insolvency of their customers; drafters of commercial legislation dealing with insolvency issues; and scholars interested in the subject of insolvency generally.