Credit Claims As "Financial Collateral" (Implementation Of Directive 2009/44/EC)

With effect from 11 May 2011, the Dutch rules on financial collateral arrangements (FCAs) have been amended. The amendment act, which implements Directive 2009/44/EC (the Amending Directive) in Dutch law, allows so-called "credit claims" to be used as collateral under an FCA. This newsletter discusses the most important changes.

Contents

• General introduction on FCAs
• Extension of scope of statutory rules on FCAs
• Definition of credit claims
• Credit claims as collateral under an FCA
• Other changes

General introduction on FCAs

An FCA is an agreement under which a collateral provider provides financial collateral to a collateral taker as security for the performance of one or more obligations. This can either be through the creation of a pledge on or through an outright transfer of title to the financial collateral. By law, a collateral taker under an FCA enjoys a number of advantages that are not available to a "traditional" collateral taker. However,