Belgium overhauls its private international law

Author: | Published: 1 Feb 2005

Belgium's new Code of Private International Law includes rules on applicable law, on jurisdiction and on the conditions for effect in Belgium of foreign decisions. As far as financial law practice is concerned, the Code changes the conflict of laws rules that apply to rights in rem in respect of receivables and assignment of receivables, and provides new rules on cross-border insolvency proceedings. The provisions on trusts as well as certain provisions that apply to the public issue of securities are also of interest.

The Code was adopted on July 16 2004 and entered into force on October 1 2004.

Rights in rem and the transfer of receivables

The provisions of the Code concerning the law that applies to rights over receivables (that is, security interests on receivables and assignment of receivables) are new.

According to Article 87 Section 3 of the Code: "The creation of rights in rem in respect...