On 24 July 2002, the Law of 20 July 2022 (published in Mémorial A 371, with corrigendum published in Mémorial A 402) entered into force.
In particular, the Law of 20 July 2022 has amended a number of provisions of the Law of 5 August 2005 on financial collateral arrangements, as amended from time to time (the “2005 Law”), which implemented Directive 2002/47/EC on financial collateral arrangements, as amended.
In most cases, the amendments introduced by the Law of 20 July 2022 clarify or consolidate practices developed by practitioners in relation to security interests governed by the 2005 Law.
Among the changes made to the Law of 2005, we set out below a list of those that are particularly relevant to the structuring of security interests governed by the 2005 Law:
1) Clarification of beneficiaries for transfers of title by way of security:
The definition of “financial sector professional” now expressly includes any payment institution or any electronic money institution.
2) Exercise of rights attached to claims over insurance contracts: