CEU Electronic Theses and Dissertations, 2018
| Author | Hagos, Bereket Alemayehu |
|---|---|
| Title | The Scope of Banks' Power in the Enforcement of Security Interests under Ethiopian Law: Lessons from the US and the OHADA Laws |
| Summary | An examination of the Ethiopian PMPBP, as expounded by the pertinent decisions of the Federal Supreme Court Cassation Division, reveals that it confers enormous power on banks, since it allows banks, upon their debtors’ default, to extra-judicially enforce their claims over collateral. However, it is not clear from the PMPBP whether the other methods of enforcement contained in the Civil Code, private disposition of collateral, and taking of collateral based on prior judicial authorization, can also be used by banks, even though it does not expressly repeal them. On the other hand, the PMPBP permits a debtor to bring an action against a bank that causes it damage due to its non-compliance with enforcement procedures. Yet, it does not provide detailed provisions regarding the nature and extent of liability of a bank. With the goal of attaining legal clarity and certainty and further protecting the interests of banks and debtors, therefore, the thesis, based on the lessons taken from Article 9 and the OHADA Security Act, provides some recommendations regarding the PMPBP, as part of Ethiopia’s reform of its collateral law. Accordingly, it is suggested that the PMPBP be amended to address the uncertainty and lack of clarity on the relation between the Civil Code and the PMPBP on whether banks can, in addition to the enforcement methods contained in the PMPBP, utilize the methods available under the Civil Code. Furthermore, it is recommended that the PMPBP’s provision on a bank’s liability towards a debtor be detailed. |
| Supervisor | Professor Tibor Tajti |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2018/hagos_bereket.pdf |
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