UNCITRAL, Hague Conference and Unidroit Texts on Security Interests: Comparison and analysis of major features of international instruments relating to secured transactions

The Hague Conference on Private International Law ("the Hague Conference"), the International Institute for the Unification of Private Law (Unidroit), and the United Nations Commission on International Trade Law (UNCITRAL) regularly coordinate their activities in order to: (a) assure the integration of the substantive terms of the instruments that they sponsor; and (b) avoid overlap and inconsistency. This coordination results in the promulgation of instruments that complement each other and, thus, can be considered and implemented by States either as part of a comprehensive systemic reform or separately.

Many instruments promulgated by the three organizations concern or directly affect transactions creating rights in movable assets (whether tangible or intangible) to secure obligations and similar financing transactions such as the sale of receivables. Notwithstanding the coordination by the three organizations, policymakers and legislators who have not actively participated in the preparation of the instruments may have some difficulty in determining: (a) how the various instruments concerning secured transactions and similar financing transactions fit together; (b) which instruments would serve the policy goals of the State; (c) whether implementing (or declining to implement) one instrument precludes implementing another instrument; and (d) whether the instruments need be implemented in a particular order.

Thus, to assist such policymakers and legislators, the three organizations have prepared this publication in order to: (a) summarize the scope and application of these instruments; (b) show how the instruments work together; and (c) provide a comparative understanding of the coverage and basic themes of each instrument. This publication is not intended to be a comprehensive review of each of the instruments.