Doc. 12 - Comment and Proposal Germany and RWG - Article X…

ORGANISATION INTERGOUVERNEMENTALE POUR LES TRANSPORTS INTERNATIONAUX FERROVIAIRES ZWISCHENSTAATLICHE ORGANISATION FÜR DEN OTIF INTERNATIONALEN EISENBAHNVERKEHR INTERGOVERNMENTAL ORGANISATION FOR INTERNATIONAL CARRIAGE BY RAIL DIPLOMATIC CONFERENCE TO ADOPT A UNIDROIT/OTIF 2007 RAIL PROTOCOL TO THE CONVENTION ON DCME-RP – Doc. 12 INTERNATIONAL INTERESTS IN MOBILE Original: English EQUIPMENT February 2007 Luxembourg, 12 to 23 February 2007 COMMENTS AND PROPOSAL ON ARTICLE XXV OF THE DRAFT RAIL PROTOCOL (presented by Germany and the Rail Working Group (RWG) 1. Chapter III of the Convention and Articles VII to X of the Draft Protocol provide for certain creditor remedies (the “remedies”) in the case of debtor default arising either as a result of a breach of a contractual obligation or due to the debtor’s insolvency. These provisions deal, inter alia, with the requirement for redelivery to the creditor of the rolling stock providing security to the creditor following a debtor default/insolvency and other ancillary provisions. 2. Certain States have legislation regulating and limiting seizure of railway rolling stock and other default remedies in order to maintain public transportation of passengers and cargo without any disruption. This interest of a State to maintain public transportation ensured by such domestic legislation creates to some extent a conflict with the interest of a creditor to benefit ...