Floating Securities under the Cape Town Convention: Swimming, Sinking or Treading Water?

Abstract

Floating security structures are a common and important feature of many developed commercial legal systems. They allow a business to grant security over a fluctuating pool of assets, such as inventory, without ongoing documentation as assets are added to or removed from the pool. Th is article looks at the extent to which floating security structures are possible under the Cape Town Convention and the three existing Protocols, and at how they have been accommodated in the proposed fourth Protocol relating to mining, agricultural and construction equipment that is to be put forward for adoption at a Diplomatic Conference in late 2019.