the netherlands antilles and aruba...•bearer securities: lex rei sitae •non-bearer securities,...
TRANSCRIPT
![Page 1: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/1.jpg)
Promes Trenité Van Doorne
The Netherlands Antilles
and Aruba
Focco W. Lunsingh Scheurleer
attorney-at-law
Conference on Netting of OTC Financial
Contracts in Latin America and the
Caribbean
10 November 2000
Final Version
![Page 2: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/2.jpg)
Promes Trenité Van Doorne
Legislative Issues on Netting,
Bankruptcy and Collateral of Securities
in the Netherlands Antilles and Aruba
![Page 3: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/3.jpg)
Promes Trenité Van Doorne
Topics
• General information on Netherlands
Antilles and Aruba and their law systems
• Close out
• Set-off
• Fraudulent Preference
• Conflict of law
• Collateral issues and collateralisation of
securities
![Page 4: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/4.jpg)
Promes Trenité Van Doorne
Netherlands Antilles and
Aruba
• Aruba: separate jurisdiction
• Netherlands Antilles: group of five
islands in the Caribbean
• Kingdom of the Netherlands: the
Netherlands, the Netherlands Antilles
and Aruba
![Page 5: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/5.jpg)
Promes Trenité Van Doorne
Law System
• Civil law jurisdiction
• Most important codes:
– Civil code
– Commercial Code
– Bankruptcy Code
![Page 6: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/6.jpg)
Promes Trenité Van Doorne
Courts
• Netherlands Antilles and Aruba: own
courts
• Netherlands Antilles and Aruba share
one Appellate Court, Curaçao
• Subject to jurisdiction of the
Supreme Court of the Netherlands
![Page 7: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/7.jpg)
Promes Trenité Van Doorne
Most Important Legal
Entities
• the company limited by shares (NV:
naamloze vennootschap)
• For Aruba apart from N.V.: A.V.V.
(Aruba exempt company)
![Page 8: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/8.jpg)
Promes Trenité Van Doorne
Close Out
• Bankruptcy code: close-out netting
• Suspension of Payments: same
applies
• Termination clauses are recognised
• Contractual provisions not
necessary
![Page 9: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/9.jpg)
Promes Trenité Van Doorne
Insolvency set-off
• Insolvency set-off is permitted.
Requirements:
– Mutuality
– Delivery of goods and payment of
money can not be set-off
– Pre-bankruptcy claims and debts
![Page 10: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/10.jpg)
Promes Trenité Van Doorne
Fraudulent preference
• Close-out netting and insolvency set-
off allowed and not fraudulent,
exceptions:
– Assigned debts/claims and assignee
not acting in good faith
– Claims or debts assigned after the
adjudication of the bankruptcy
![Page 11: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/11.jpg)
Promes Trenité Van Doorne
Conflict of law
• Choice of law recognised
![Page 12: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/12.jpg)
Promes Trenité Van Doorne
Multibranch Netting Issues
• Treatment of local entities with
global operations and foreign
branches or offices
• Treatment of local branches and
offices of foreign entities
![Page 13: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/13.jpg)
Promes Trenité Van Doorne
Collateral Issues
• Tangible assets: lex rei sitae
• Claims: the law that governs the
contract between the
assignor/pledgor and the
assignee/pledgee
• Securities: depends on nature of the
security
![Page 14: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/14.jpg)
Promes Trenité Van Doorne
Collateralisation of
Securities
• bearer securities: lex rei sitae
• non-bearer securities, registered in
the name of the investor:
– laws of the state in which the issuer has
its corporate seat
• securities registered in a book entry
system: position unclear
![Page 15: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/15.jpg)
Promes Trenité Van Doorne
Collateralisation of
Securities
• The law of the first intermediary is
advocated in the Netherlands Antilles
• Promes Trenité Van Doorne is
advising law makers in the Netherlands Antilles
![Page 16: The Netherlands Antilles and Aruba...•bearer securities: lex rei sitae •non-bearer securities, registered in the name of the investor: –laws of the state in which the issuer](https://reader034.vdocuments.net/reader034/viewer/2022042811/5fa63bed41a8461edc003d04/html5/thumbnails/16.jpg)
Promes Trenité Van Doorne
Promes Trenité Van Doorne
Focco W. Lunsingh Scheurleer
Julianaplein 22
P.O. Box 504
Curaçao, Netherlands Antilles
Telephone: + 599 9 461 3400 ext. 160
Telefax: + 599 9 461 2023