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The Cape Convention knows a great success with about 60 ratifications from important States or organizations in international business, like Russia, India, United States, Brazil, China and European Union. The main idea governing the instrument is to give the most efficiency to securities or bonds which have an utmost economic importance.
Indeed the Convention provides for the constitution and effects of an international interest in certain categories of mobile equipment and associated rights.
The scope of application of the Convention is defined without any reference to the situation of the material or equipment given in guarantee. The Convention applies if, when at the conclusion of the agreement creating for the international interest, the debtor is located in a contracting State.
The basic framework of the Convention relies on the establishment for registration of an International Registry. A registered interest has priority over any other interest subsequently registered and over an unregistered interest.
The Convention includes also several provisions related to some issues concerning the constitution and the effects of an international interest.
This Convention is not in opposition with French law as recently modernized. Nevertheless, France has not ratified the Convention and ratification by EU remains limited to issues on which EU has jurisdiction. Therefore, difficulties remain because the lex rei sitae could prevail on the law of the registered international interest.
This paper after having presented the Convention and its principal provisions, discusses the differences between substantial French law and the law provided by the Convention. Finally, the paper concludes to the consistency between both systems.
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