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Template:Csa Representations summ: Difference between revisions
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====Fewer representations for {{ttcsa}s==== | |||
Seeing as what is going on in a {{ttcsa}} is a bit plainer, and less in thrall to the [[deep magic]] of contractual law, one needs make less of a formal fuss when going about it. If I am giving you something outright, all you really need to know from me is that it is mine to give — and even that in these times of dematerialised securities, the [[Financial Collateral Directive]] and so on, is not so fraught as once it might have been. All the recipient really needs to establish is enough plausible deniability to be a bona fide recipient for value without notice. | |||
When I am giving you possession and an equitable interest in something I retain legal ownership of, there are more things that can go wrong, so I need a few more representations: that you can grant security, that you have granted security, that the security works, and that no-one else has a security interest that might interfere with it. Of course, all this is moot the moment you rehypothecate the asset, but let’s not let that ruin a good story. | |||
====Clearing system liens==== | ====Clearing system liens==== | ||
In these modern, [[Dematerialised|dematerialised]] times, the [[securities]] in a [[clearing system]] — that is, pretty much ''all'' securities — exist only as entries in a ledger maintained by the [[clearing system]]. The individual securities are no longer — have not for decades been — security-printed, physical things. (See [[common depositary]] for more about this: it is a topic that thrills a certain type and drives others to distraction.) | In these modern, [[Dematerialised|dematerialised]] times, the [[securities]] in a [[clearing system]] — that is, pretty much ''all'' securities — exist only as entries in a ledger maintained by the [[clearing system]]. The individual securities are no longer — have not for decades been — security-printed, physical things. (See [[common depositary]] for more about this: it is a topic that thrills a certain type and drives others to distraction.) | ||