Harmonisation of secured transactions law in context
There is a commercial necessity in harmonising secured transactions law. Secured transactions law is at the core of commercial law, and at the crossroads of the law of contracts, consumer law and the law of property, which are deeply rooted in the traditional domestic rules of legal cultures.1 Traditional roots of secured transactions law are considered to be the resistance point in international harmonisation activities. With the globalisation of fi nancial markets and the increased pace of market interdependency, it is fi nancially necessary and critical to harmonise laws governing secured transactions at the international level to allow businesses to have access to low-cost credit. The ability to take security over movables in addition to immovables is critical. The issue has particular importance for SMEs operating in emerging markets.2 Amid the recent fi nancial crisis, the same argument equally applies to SMEs in developed economies that are in need of immediate liquidity.3 The issue was one of the main debating points during the G20 Summit
1 For a similar affi rmation, see Dahan, F. (2000) ‘Secured Transactions Law in Western Advanced Economies: Exposing Myths’, Law in Transition, 37, 39 (Autumn); Cuming, R.C.C. (1997) ‘The Internationalization of Secured Financing Law: The Spreading Infl uence of the Concepts UCC, Article 9 and its Progeny’ in R. Cranston (ed) Making Commercial Law Essays in Honour of Roy Goode, Oxford: Clarendon, 499, arguing that the law of secured transactions ‘. . . is perceived as embodying cultural attitudes and public policy choices that vary greatly among states . . .’.