The Law and Economics of Secured Lending


This book provides an in-depth analysis of both the general economic theory of secured lending, as well as the very concrete and detailed aspects of the legal framework in which it takes place, in Belgium and the United States. Legal practitioners will find a deeper economic understanding of how credit works, and answers to legal questions that no traditional, inside-the-box legal handbook will ever ask. Economists will find theory applied to, and checked by, the legal reality in which they necessarily operate, down to minute detail.
Author(s):
Frederic Helsen
Series:
Property Law Series
Volume:
12
book | published | 1st edition
June 2021 | xii + 552 pp.

Hardback
€140.-


ISBN 9781839701504


When you check this box, you will be subscribed to the series. If you subscribe to the series, each new volume will automatically be sent to you. You can only cancel your subscription after having received two consecutive volumes.

Details

How can it be that people and businesses are ever unable to obtain credit? Why do lenders not simply increase the interest rate for high-risk borrowers? And if increased interest rates can’t solve the problem, then surely the use of collateral can?

As it turns out, things are not that simple. It seems that the laws of supply and demand do not fully apply to the credit market: low interest rates attract high demand, a part of which is never met, no matter what the interest rate. What is more, excessive interest rates seem to exacerbate the problem. Common knowledge holds that security interests provide at least a part of the answer, and yet economic theory has been ambiguous about them, to say the least.

This book provides an in-depth analysis of both the general economic theory of secured lending, as well as the very concrete and detailed aspects of the legal framework in which it takes place, in Belgium and the United States. Legal practitioners will find a deeper economic understanding of how credit works, and answers to legal questions that no traditional, inside-the-box legal handbook will ever ask. Economists will find theory applied to, and checked by, the legal reality in which they necessarily operate, down to minute detail.

DR. FREDERIC HELSEN (°1988) studied law, economics and business administration (bachelor, KU Leuven, 2009) and law (master, KU Leuven and Duke Law School, 2011). He then obtained a PhD from the Law Faculty of KU Leuven in 2016, after research stays at Harvard Law School (2014-2015) and Berkeley School of Law (2015) as a fellow of Fulbright and the BAEF. During this period, he also obtained his master's degree in Notary law from VUB in 2014. In 2021, he was appointed a notary, and is currently a partner in the leading Brussels-based firm Berquin Notaries.

Table of Contents

Table of Contents (p. 0)

Frederic Helsen

Part I. Introduction

Chapter I. Basic Economic Problem and Search for a Legal Solution (p. 1)

Chapter II. Methodology (p. 9)

Part II. Economic Framework

Chapter I. Secured Lending Theory: Preliminary Questions on the Efficiency of Security Interests (p. 19)

Chapter II. Credit Rationing (p. 49)

Chapter III. Why is Credit Rationing a Problem? (p. 87)

Chapter IV. Beneficial Effects of Security Interests on Credit Rationing (p. 91)

Chapter V. Costs of Security Interests (p. 125)

Chapter VI. Normative Implications – A Functional Design of the Optimal Security Interest System (p. 145)

Part III. Legal Framework

Chapter I. Location in Research Methodology (p. 191)

Chapter II. General Principles of Bankruptcy (p. 195)

Chapter III. Mortgages (p. 213)

Chapter IV. Movables (p. 389)

Part IV. Conclusion

Conclusion (p. 511)

Bibliography (p. 523)

About the series:

Property Law Series

Het goederenrecht heeft de voorbije jaren een ‘revival’ gekend. Van een oud, star rechtsdomein dat terugging op een agrarische traditie, is het goederenrecht uitgebouwd tot een moderne component van het vermogensrecht. Op die manier komt het goederenrecht uit zijn isolement, en komen de raakvlakken met het fiscaal recht, constitutioneel en administratief recht, huwelijksvermogensrecht, verbintenissenrecht, rechten van de mens, enz. centraal te staan. Ook de rechtsvergelijking vormt bij een diepgaande analyse een hoeksteen.

In dit perspectief wil de reeks “Property Law Series” diepgaande werken over het goederenrecht bundelen. Die diepgang vergt een gedegen analyse die zowel voor de begripsvorming als voor de juridische praktijk een grote bijdrage levert. Zowel Nederlandstalige als Engelstalige werken kunnen erin toegang krijgen.

De reeks staat onder redactie van Prof. Dr. V. Sagaert, Prof. Dr. A. Wylleman, Prof. Dr. N. Carette, Prof. Dr. S. Van Erp en Prof. Dr. A. Van der Walt.

Indien u intekent op deze reeks, betaalt u permanent 15% minder! Elke nieuwe titel wordt u immers, bij verschijnen, automatisch toegestuurd. U mag een reeks vrijblijvend schriftelijk opzeggen na ontvangst van minimaal twee volgende uitgaven.

More about this series