Examples of using The grantor and the secured creditor in English and their translations into Arabic
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Ecclesiastic
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Law applicable to the rights and obligations of the grantor and the secured creditor.
While it is normally not difficult todetermine who are the parties to a security agreement(i.e. the grantor and the secured creditor) defining who is to be considered a" third party" is more complex.
Once the conditions for creation of a security right addressed in chapter IV(see A/CN.9/631/Add.1) are satisfied,the security right becomes effective between the grantor and the secured creditor(see A/CN.9/631, recommendation 31).
Most of the rules relating to the relationship between the grantor and the secured creditor on the one hand,and the debtor on the obligation(what the Guide calls third-party obligors) on the other, are mandatory but some are non-mandatory.
When the encumbered asset is a right against a third-party obligor,the secured transaction affects not only the grantor and the secured creditor but also the third-party obligor.
Moreover, even if, after default, the grantor and the secured creditor agree that the secured creditor may keep the encumbered assets, in these same States such arrangements are considered as a contractual payment and have no effect on the rights of any other party with a right in the encumbered assets.
When the encumbered asset is a right against a third-party obligor,the secured transaction affects not only the grantor and the secured creditor but may also affect the third-party obligor.
Note to the Commission: The Commission may wish to note that the commentary will explain that, pursuant to recommendation 8(see A/CN.9/WG. VI/WP.26/Add.7), a security right in a right to payment of funds credited to a bankaccount may be created by agreement between the grantor and the secured creditor.
Mr. Ginting(Observer for Indonesia)said that it would be more equitable for both the grantor and the secured creditor if the notice were drawn up in the language of the security agreement being enforced.
As a result, a security right in dematerialized non-intermediated securities may be made effective against third parties by registration orcontrol(the control agreement must be among the issuer, the grantor and the secured creditor).
After discussion, it was agreed that recommendation 246 should be reformulated toread as follows:" The law should provide that the grantor and the secured creditor may agree that the secured creditor is entitled to take steps to preserve the encumbered intellectual property.".
Most of the mandatory and non-mandatory rules pertaining to the pre-default rights and obligations of parties relate to the manner in which the prerogatives and responsibilities of ownership are allocated between the grantor and the secured creditor.
For example, with regard to the creation of security right,the law recommended in the Guide simply requires an agreement concluded between the grantor and the secured creditor and sets out the minimum contents and the form of that security agreement(see recommendation 13-15).
As already noted, most of the mandatory and non-mandatory rules pertaining to the pre-default rights and obligations of parties relate to the manner in which the prerogatives and responsibilities of ownership are allocated between the grantor and the secured creditor.
(ii) If the depositary bank has concluded a control agreement with the grantor and the secured creditor evidenced by a signed writing according to which the depositary bank has agreed to follow instructions from the secured creditor with respect to the payment of funds credited to the bank account without further consent from the grantor; or.
Under the law recommended in the Guide, a security right in intellectual propertymay be created by written agreement between the grantor and the secured creditor(see recommendation 13 and paras. 5-8 below).
Control agreement ' means an agreement between the depositary bank, the grantor and the secured creditor, evidenced by a signed writing, according to which the depositary bank has agreed to follow instructions from the secured creditor with respect to the payment of funds credited to the bank account without further consent from the grantor.".
As more specifically provided in other recommendations of this chapter,the law should provide that after default the grantor and the secured creditor have the rights and remedies provided in the recommendations of this chapter, in the security agreement(except to the extent inconsistent with the mandatory recommendations of this chapter) and in any other law.
While the security agreement sometimes may be a separate agreement between the parties, often it is contained in the underlying financing contract orother similar contract between the grantor and the secured creditor, such as a contract for the sale of goods on credit.
These types of legislative limit as to the amount to be secured are unavoidably arbitrary, usually cannot be fine-tuned to meet the credit needs of individual grantors and would normally need to be adjustedconstantly to reflect changes in the credit relationship between the grantor and the secured creditor.
Accordingly, if a security right has been created in accordance with the requirements set out in the law recommended in the Guide,the security right is effective between the grantor and the secured creditor even if the additional steps necessary to make the security right effective against third parties have not yet been taken(see recommendation 30).
Where serially numbered property constitutes either capital equipment or consumer goods(for the definition of" consumer goods", see A/CN.9/631/Add.1, Introduction, sect. B, Terminology and rules of interpretation, para. 19)in the hands of the grantor it is usually treated as discrete by both the grantor and the secured creditor.
With respect to certain recommendations, the view was expressed that the terms" grantor" and" secured creditor" didnot mean the persons identified in the notice as the grantor and the secured creditor(as explained in the terminology) but rather meant the actual grantor and the actual secured creditor. .
In order to make the enforcement regime as expeditious as possible, States typically enact detailedrules that determine the effect of enforcement on the relationship between the grantor and the secured creditor, the rights of parties that may purchase the encumbered assets at an enforcement sale, and the rights of other secured creditors to receive the proceeds generated by the sale of the encumbered assets.
In most States, the creation of a security right in movable property requires that an agreement(for the definition of" security agreement", see para.19 above) between the grantor and the secured creditor providing for such creation be concluded(see A/CN.9/631, recommendation 12).