This thesis considers the typical structure and requirements of a traditional securitisation scheme in South Africa. The models used in other jurisdictions cannot be applied unchanged in South Africa. South African securitisation structures make use of a security special purpose vehicle (SPV), because of uncertainties about the provisions of the Companies Act 61 of 1973 relating to the trustee for debenture-holders. An evaluation of the functioning of a security SPV leads to the conclusion that a trustee for debenture-holders should still be appointed within the security SPV structure to represent the interests of the investors. The trust for debenture-holders can be a true trust. The use of general notarial bonds over claims, pledges of claims and fiduciary security cession is examined to determine the effectiveness of each one during securitisation. Aspects of several Acts, Notices and other regulatory measures are considered where they are relevant to securitisation. Of specific importance is the Exemption Notice Relating to Securitisation Schemes, 2008. The Notice requires that both rights and obligations of the originator must be transferred to the SPV. The requirement that the obligations of the originator must be transferred leads to the conclusion that the Notice requires a transfer of claims by means of cession and a transfer of duties by means of delegation. For several reasons, delegation is not a suitable method of transfer during securitisation. Foremost among these reasons is that delegation is a form of novation, which means that the claims cease to exist and are replaced with new claims between the debtors and the SPV. Security rights that were accessory to these claims will then also cease to exist. The amendment to the Notice is recommended so that transfer of claims by means of cession will suffice for compliance with the Notice. The South African courts‘ approach to simulated transactions is evaluated to determine the possibility that the sale of the assets to the SPV may be viewed as a simulated transaction. This thesis evaluates the provisions in insolvency law that could be raised to impeach the sale of the assets in the event of the originator‘s insolvency. The risk of avoidance of the transaction on either ground is small. / Mercentile Law / L.L.D. (Mercentile Law)

Text in Afrikaans / Die doel van saaklike sekerheidstelling is om 'n saak as eksekusievoorwerp tot die beskikking van die kredietgewer te stel. Vorderingsregte as sekerheidsobjekte voldoen hieraan en moet daarom as deel van die saakbegrip beskou word. Vorderingsregte word in die praktyk as sekerheidsobjekte aangewend of by wyse van sekerheidsessies of deur middel van die registrasie van 'n notariele verband daaroor. Alhoewel die regspraak by sekerheidsessies voorkeur gee aan 'n verpandingskonstruksie, is Scott van mening dat 'n algehele sekerheidsessie nog moontlik is. Die toepassing van die verpandingskonstruksie lewer aanvaarbare resultate en voldoen meestal aan die kontrakterende partye se behoeftes. Die vereiste van publisiteit by pandreg sal egter in sekere gevalle nie vir die partye aanvaarbaar wees nie en kan algehele sekerheidsessies hier 'n oplossing bied. By notariele verbande is die bestaande posisie ingevolge waarvan 'n onderskeid gemaak word tussen liggaamlike en onliggaamlike sake as sekerheidsobjekte, onuithoudbaar en is wetgewing in die verband nodig. The aim of real security is to have objects available to a creditor for execution. Personal rights may be used for this purpose and should therefore be included in the definition of property. In practise claims (personal rights) are used as security objects by way of a security cession or through the registration of a notarial bond over the claims. Although the courts give preference to personal rights in security by way of pledge, Scott is of the opinion that these decisions do not exclude out-and-out security cessions. The results that application of the law of pledge causes, are acceptable and will mostly fulfil the need of the parties. In certain situations the requirement of publicity will however be unacceptable in which instance out-and-out security cessions may be the solution. The current position where a distinction is made between corporeal and incorporeal property as security objects, is unacceptable and legislation is needed in this regard. / Private Law / LL.M.

This thesis considers the typical structure and requirements of a traditional securitisation scheme in South Africa. The models used in other jurisdictions cannot be applied unchanged in South Africa. South African securitisation structures make use of a security special purpose vehicle (SPV), because of uncertainties about the provisions of the Companies Act 61 of 1973 relating to the trustee for debenture-holders. An evaluation of the functioning of a security SPV leads to the conclusion that a trustee for debenture-holders should still be appointed within the security SPV structure to represent the interests of the investors. The trust for debenture-holders can be a true trust. The use of general notarial bonds over claims, pledges of claims and fiduciary security cession is examined to determine the effectiveness of each one during securitisation. Aspects of several Acts, Notices and other regulatory measures are considered where they are relevant to securitisation. Of specific importance is the Exemption Notice Relating to Securitisation Schemes, 2008. The Notice requires that both rights and obligations of the originator must be transferred to the SPV. The requirement that the obligations of the originator must be transferred leads to the conclusion that the Notice requires a transfer of claims by means of cession and a transfer of duties by means of delegation. For several reasons, delegation is not a suitable method of transfer during securitisation. Foremost among these reasons is that delegation is a form of novation, which means that the claims cease to exist and are replaced with new claims between the debtors and the SPV. Security rights that were accessory to these claims will then also cease to exist. The amendment to the Notice is recommended so that transfer of claims by means of cession will suffice for compliance with the Notice. The South African courts‘ approach to simulated transactions is evaluated to determine the possibility that the sale of the assets to the SPV may be viewed as a simulated transaction. This thesis evaluates the provisions in insolvency law that could be raised to impeach the sale of the assets in the event of the originator‘s insolvency. The risk of avoidance of the transaction on either ground is small. / Mercentile Law / L.L.D. (Mercentile Law)

Text in Afrikaans / Die doel van saaklike sekerheidstelling is om 'n saak as eksekusievoorwerp tot die beskikking van die kredietgewer te stel. Vorderingsregte as sekerheidsobjekte voldoen hieraan en moet daarom as deel van die saakbegrip beskou word. Vorderingsregte word in die praktyk as sekerheidsobjekte aangewend of by wyse van sekerheidsessies of deur middel van die registrasie van 'n notariele verband daaroor. Alhoewel die regspraak by sekerheidsessies voorkeur gee aan 'n verpandingskonstruksie, is Scott van mening dat 'n algehele sekerheidsessie nog moontlik is. Die toepassing van die verpandingskonstruksie lewer aanvaarbare resultate en voldoen meestal aan die kontrakterende partye se behoeftes. Die vereiste van publisiteit by pandreg sal egter in sekere gevalle nie vir die partye aanvaarbaar wees nie en kan algehele sekerheidsessies hier 'n oplossing bied. By notariele verbande is die bestaande posisie ingevolge waarvan 'n onderskeid gemaak word tussen liggaamlike en onliggaamlike sake as sekerheidsobjekte, onuithoudbaar en is wetgewing in die verband nodig. The aim of real security is to have objects available to a creditor for execution. Personal rights may be used for this purpose and should therefore be included in the definition of property. In practise claims (personal rights) are used as security objects by way of a security cession or through the registration of a notarial bond over the claims. Although the courts give preference to personal rights in security by way of pledge, Scott is of the opinion that these decisions do not exclude out-and-out security cessions. The results that application of the law of pledge causes, are acceptable and will mostly fulfil the need of the parties. In certain situations the requirement of publicity will however be unacceptable in which instance out-and-out security cessions may be the solution. The current position where a distinction is made between corporeal and incorporeal property as security objects, is unacceptable and legislation is needed in this regard. / Private Law / LL.M.