ABSTRACT
This chapter considers the most controversial part of the proposed reforms: the inclusion of quasi-security interests in the scheme, focusing particularly on whether they should be treated for all purposes as security interests. Since quasi-security transactions achieve their effect either by reservation of title, or by the grant of an absolute title to the creditor, the form of the transaction involves the title residing in the creditor until the debt is paid. The registration requirements for possessory interests would be likely to be different, but they would also fall within the priority and enforcement rules. An unregistered security interest was not effective against a debtor’s trustee in bankruptcy. Certain problems might well have to be dealt with expressly: for example, the Re Giffen situation where an unregistered registrable interest was void against a liquidator, the liquidator’s interest in the asset may have to be specifically provided for.
