Remedies on insolvency
Article XI of the Protocol has been described as the economically most significant provision.
Official Commentary at 199
Article XI, which modifies Article 30, provides for the efficacy of International Interests in case of insolvency of the debtor, then when it matters most
The variety of choice of a Contracting State with respect to Article XI is as broad as it can be.
It may choose not to make a declaration, in which case national insolvency law prevails over Article XI.
Further, it can opt to apply Article XI either to all types of insolvency or only to certain types; it may also choose to which types alternative A and to which alternative B are
applicable.
If, however, one of the alternatives is chosen for a specific type of insolvency proceedings it must be applied in its entirety.
This is because each set of rules represent a unit which makes it impracticable to select one or more without the others.
Official Commentary at 200
Furthermore, according to Article IV(3) of the Protocol the parties themselves may exclude the provisions of Article XI in
whole or partially as per their agreement.
Such agreement has to