CA-8.2.6
The legal opinions must address the nature of the security interest, the enforceability of the security interest against third parties, and perfection requirements (such as notices and registration). The effects of bankruptcy (see also Paragraph CA-8.3.22) on perfection must also be considered and opined upon. Major issues related to Sukuk based on collateral security interest and related perfection include the following:
(a) Rahn (mortgage or other pledge of assets) concepts in certain jurisdictions are possessory in nature. This makes perfection a particularly difficult opinion issue in these jurisdictions;
(b) In many jurisdictions, and without regard to rahn concepts, perfection and priority regimes are not well developed; and
(c) Bankruptcy laws and regimes may also not be well developed in some jurisdictions.
January 2015