EU

The EU Collateral Directive

Dermot Turing. Clifford Chance, London

Taking collateral is a horribly complicated business. Not only do you have to do all the usual legal due diligence associated with contractual arrangements (capacity, authority and so forth) but because you are trying to take an interest in property, you have to look at property law rights; and, as if that were not enough, because credit enhancement is the objective, you need to think about insolvency issues as well.These laws all differ from one country to another, and a single collateral delivery may involve several different, relevant legal jurisdictions.