Home Law Implementing the Cape Town Convention and the Domestic Laws on Secured Transactions
Perfection of Title-Based Security
A transfer of ownership takes effect solely by the manifestation of intent of the relevant parties. To assert it against a third party, however, perfection is necessary. To perfect a transfer of ownership of a movable, the Civil Code requires delivery of the movable.
In this context, “delivery” does not always mean that the location of the movable must change. The Civil Code permits constructive transfers. Therefore, a transfer of ownership can be perfected without a change in the appearance.
Arguably, this provision benefits creditors. Nevertheless, the law must address immediate acquisition by a third party. Therefore, the Civil Code states that if a third party peacefully and openly commences the possession of the collateral, by a transactional act, the third party will acquire ownership immediately if the proceedings are commenced in good faith and the third party is faultless.
|< Prev||CONTENTS||Next >|