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Article 12 of the US UCC and the Draft English Property (Digital Assets etc) Bill 2024: potential impacts on fund finance transactions

6 May 2025 / Author(s): Chris McDermott , George Pelling , Eric Starr , John Donnelly , Alix Prentice , Trent E Lindsay
Issue: May 2025 / Categories: Feature

In this article, the authors consider the impact of the changes introduced by Art 12 of the US Uniform Commercial Code and the draft English Property (Digital Assets etc) Bill 2024 on fund finance transactions, looking at the difference between collateral over subscription obligations (such as limited partner commitments) and net asset value collateral over portfolio equity interests, and the complexities of relating the technological attributes of tokenised structures to such legal principles (as where the company’s definitive share register is maintained on the blockchain).

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