ADAPTING INTERNATIONAL PROJECT FINANCE SECURITY MECHANISMS TO TRANSITIONAL CIVIL LAW JURISDICTIONS: SECURITY AGENTS, INTER-CREDITOR ARRANGEMENTS, AND ACCOUNT PLEDGES
Keywords:
project finance, civil law jurisdictions, transitional economies, security agents, inter-creditor arrangements, account pledges, secured transactions, lender protectionsAbstract
Project finance involves complex security mechanisms that must be adapted to the legal frameworks of transitional civil law jurisdictions, where investor protections are often weaker and enforcement mechanisms differ from common law systems. This article examines the adaptation of key elements—security agents, inter-creditor arrangements, and account pledges—drawing on a literature review of scholarly and practitioner sources. Findings highlight the use of security agents for efficient collateral management, inter-creditor agreements to prioritize claims, and account pledges as flexible security tools, while identifying challenges like registration requirements and limited trust concepts. The discussion addresses implications for enhancing project viability in transitional contexts, emphasizing the need for harmonized legal reforms.
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