ABSTRACT

Security is considered to be axiomatic to the development of a market economy. The more advanced the economy becomes the greater the demand for credit and in the wake of this, pressure is often exerted on legislators to extend the ambit of the law's recognition of non-possessory security interests. This chapter examines the extent of the recognition and enforceability of such clauses within the main jurisdictions of Europe. It considers whether a uniform approach to retention of title clauses is feasible so as to effectively facilitate the use and enforcement of these clauses within the European Union. Retention of title is not specifically regulated under the Austria Civil Code nor the Commercial Code. Under Belgian Law it is necessary for a reservation of title clause to be specifically inserted in the contract of sale. An important change to Belgian law was occasioned by the Bankruptcy Act 1997.