The University of Southampton
Courses

LAWS6129 Advanced Secured Transactions

Module Overview

The provision of credit is central to the financing of commercial activity. A significant factor dictating the availability and the terms governing the provision of credit is the ability of the borrower to provide security to the lender for the repayment of credit. This 15 CATS module will build upon the foundational principles surrounding the grant of security for the repayment of credit explored in the pre-requisite module Principles of Secured Transactions by considering the common forms of personal, real and quasi asset based financing employed in contemporary commercial financing with a focus upon small and medium size enterprises.

Aims and Objectives

Module Aims

- to give students a sound knowledge and understanding of the common forms of asset based financing employed in contemporary commercial financing. - to give students a sound knowledge and understanding of the distinction between personal, real and quasi forms of security employed in contemporary commercial financing; - to enable students to develop their powers of legal analysis through a critical examination of the distinct national and international issues of attachment, perfection and priority raised by differing forms of personal and asset based financing.

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • receivables financing & securitisation.
  • the use of corporate investment securities within commercial financing eg repos,stock lending.
  • chattel based financing eg ship finance.
  • quasi security e.g. retention of title, quitsclose trusts.
  • guarantees.
  • international perspectives associated with cross border financing.
  • issues of attachment, perfection and priority associated with assets based financing.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Describe and critically evaluate the role of personal security and differing forms of asset based financing within the promotion of the economic success of small to medium size enterprises.
  • Evaluate the distinction between the form and function of personal, real and quasi security.
  • Assess the challenges presented by cross border lending.
  • Evaluate the issues raised to the principles of attachment, perfection and priority of real and quasi security interests over different forms of assets.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Identify and locate relevant primary and secondary (including electronic) legal sources.
  • Analyse, synthesise and critically evaluate primary and secondary legal materials.
  • Formulate and present a coherent and logical legal argument supported with appropriate evidence.
  • Effectively research and manage an independent project using available primary and secondary sources
  • Effectively communicate in written English the findings of an independent research project appropriately supported with relevant and adequately referenced evidence.

Syllabus

The syllabus will focus upon the asset based loan financing (NB It will not cover equity financing): - Issues surrounding the use of debts and receivables as security and its development through securitisation. - The use of corporate investment securities within commercial financing and financial markets through repos and stock lending structures including the challenges presented by intermediated securities. - Issues surrounding the use of chattels as security employing examples such as mobile equipment under the Cape Town Convention or ship financing. - Function or form - the use of quasi security for instance through an examination of retention of title or quitsclose trusts. - The role of personal security through the use of director/shareholder guarantees. - The challenges of cross border financing including conflict and governing of law issues and the role of international conventions and model law initiatives. - Beyond perfection and priority – by examining distinct doctrines which affect these principles in assets based financing for instance tacking, purchase money security, subordination and subrogation.

Learning and Teaching

Teaching and learning methods

Teaching methods include: - Weekly seminars, incorporating individual student presentations. Learning methods include: - Directed reading, as per distributed reading lists; - Additional reading as provided on Blackboard lists - Engagement with daily business reports in news media, whether online or in newspapers, to ensure the students can relate the materials being discussed to every day issues in the financing of small to medium size companies.

TypeHours
Teaching20
Independent Study130
Total study time150

Resources & Reading list

Resources. For resources which are required or considered useful for the module: key texts, text books, data books, software, web sites, other sources of related information. Description and/or list, with URL, library reference, etc. As the Law School already runs a Commercial Secured Financing module, it is not expected that additional resources will be required.

Assessment

Formative

Class discussions

Summative

MethodPercentage contribution
Research project  (5000 words) 100%

Repeat

MethodPercentage contribution
Research project  (5000 words) 100%

Referral

MethodPercentage contribution
Research project  (5000 words) 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Pre-requisite: LAWS6128 Principles of Secured Transactions

Pre-requisites

To study this module, you will need to have studied the following module(s):

CodeModule
LAWS6128Principles of Secured Transactions

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

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