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OHADA Law: Security Interests and Credit Risk Management
Managing credit risk also depends on the strength of security arrangements. Understand security interests under OHADA law to assess their scope and areas requiring attention. Strengthen your ability to examine files and discuss them with legal and financial stakeholders.
- Duration
- 2 days 14 hours
- Code
- BFA006FR Code
Presentation
Banking transactions, mergers and acquisitions, and structured finance all depend on legal safeguards to protect profitability. This 2-day course brings together the essentials of OHADA security interests and credit risk mitigation techniques for legal professionals, finance specialists and bankers.
From suretyships to mortgages, non-possessory pledges, security over a business and independent guarantee letters, you will examine each mechanism, its validity requirements, effects and relationship with Basel ratios. Case studies based on recent files and drafting workshops turn theory into clauses ready for signature and enforceable against third parties.
By the end of the course, you will know how to select, structure and document the appropriate security for each risk while complying with the Basel regulatory framework and the OHADA Uniform Act. These skills will make you a key contributor to safeguarding financing within your organisation.
Objectives
By the end of this credit risk management course, you will be able to:
- identify, classify and compare the main security arrangements under OHADA law, including personal, proprietary and indemnity-based security;
- select and structure security suited to a transaction's operational needs and risk profile;
- assess the benefits and constraints of each type of security to optimise protection;
- interpret and apply legal and contractual obligations relating to security arrangements;
- implement practical credit risk mitigation mechanisms in banking processes.
Program
Module 1: understanding OHADA security interests
- The economic and legal role of security in bank financing.
- The OHADA framework: the Uniform Act Organising Securities and its requirements.
- Categories of security: personal, proprietary and indemnity-based arrangements—their definition, effects and competing claims.
Module 2: analysing personal and proprietary security
Personal security
- Suretyships: conditions, accessory effects and protective clauses.
- Independent guarantee letters: form, substance and enforceability against third parties.
- Operational structuring requirements: amount, duration and call procedure.
Security over movable assets
- Rights of retention: exercise and enforceable scope.
- Possessory and non-possessory pledges: creation, publicity and enforcement.
- Security over receivables, securities and a business: registration and enforceability against third parties.
- General and special preferential claims: ranking, limitation periods and impact on distribution.
Security over immovable property
- Contractual mortgages: form, land registration publicity, registration and discharge.
- Statutory and judicial mortgages: triggers and effects.
- Distribution and ranking of security interests: priority rules and the concept of floating security.
Module 3: implementing banking credit risk mitigation techniques under OHADA
- General principles of credit risk identification and measurement.
- Types of eligible mitigation techniques: guarantees, Dailly assignments of receivables, credit insurance and derivatives.
- Basel II/III regulatory requirements: collateral eligibility, LGD ratios and internal validation.
- Operational implementation: legal structuring, documentation, monitoring and review.
Module 4: assessing and consolidating your skills
- Critical analysis of legal structures using real business cases.
- Drafting instruments and standard clauses: guarantee letters, preferential agreements and subordination clauses.
- Presentation of selected solutions and benchmarking of banking practices.
Audience
This course is intended for:
- Business law professionals and legal managers who need to master legal guarantees and contractual structures to secure obligations.
- Bankers and credit managers seeking to mitigate credit risk in banking.
- Business-side project support consultants (AMOA) and compliance advisers who want to ensure the validity and legality of security arrangements.
Prerequisites
This course requires the following prerequisites:
- Business law knowledge: familiarity with the law of obligations and contracts is essential to understanding security interests and guarantees.
- Basic financial concepts: an understanding of credit mechanisms and associated risks.
- Relevant professional experience: familiarity with banking or legal work is recommended.
Teaching and assessment methods
- Initial skills assessment
- Training materials provided to participants
- Continuous assessment throughout the course
- End-of-course feedback questionnaire
- Combination of theory and practical application
- Attendance records
- Post-course follow-up evaluation
- Quiz / multiple-choice questions
- Practical exercises
- Case study
Course highlights
- Balanced learning approach: combine theory and practice, case law analysis, group work and practical scenarios.
- Practical tools and deliverables: receive comprehensive materials and ready-to-use legal clause templates at the end of the course.
- Immersive practice: strengthen your skills through contextualised case studies, critical analysis of legal structures and clause-drafting workshops.
Dates and sessions
Choose the date and delivery format that suit you.
No upcoming sessions are currently available.