Transport and Control

Abstract

A structured trade financier will often require control and security over the goods in transit as a secondary source of repayment should the end-buyer cancel their order or is unable or unwilling to pay. The mode of shipment, nature of transport document, consignee, and negotiability, together with the applicable law, will determine the possessory security rights of the financier to the goods and the proceeds of their sale. The importance of documents of title, how the financier can achieve constructive possession of the goods, and how shipping documents can be used as part of a structured finance solution to evidence timely shipment as a condition for release of payment or finance is described.