Law Commission calls for reform to art finance law

On Monday 19 September 2016, Boodle Hatfield LLP was delighted to host a seminar presenting the Law Commission’s recommendations on reforming the law of loans secured on personal goods.

The Law Commission highlighted the Bills of Sale Act 1878 and the Bills of Sale Amendment Act 1882 as being archaic Victorian statutes which are wholly unsuited for modern credit arrangements. The calls for reform have stemmed from the logbook loan sector which uses Bills of Sales to secure loans and where sharp practices have been deemed disproportionate and unfair on borrowers. The proposed reforms will not only regulate the logbook loan market but will also have knock on effects on the more exclusive art and luxury asset lending sector. Continue reading

Bills of Sale consultation

Bills of sale are legal instruments, still used today, that allow individuals to transfer ownership of goods to another while retaining them physically. Historically, bills of sale were most often used as security for loans where the borrower would grant ownership to the lender over, say, a painting which would act as the security but (in contrast to pawn broking or granting a pledge) could keep the painting hanging on their wall. Once the loan was repaid, the ownership of the painting would be reinstated to the borrower. Continue reading