LAW5419 - The law of financial transactions - 2019

This unit introduces students to the legal and regulatory issues relating to transactions undertaken by companies and other institutions in order to borrow money or otherwise to raise funds. The unit is in three parts. In the first part, the basic building blocks of: the concepts of credit; how a company borrows money; and how it gives security to its lenders to secure repayment, are all examined. The second part involves an examination of the various forms of borrowings, including syndicated financing and project finance. The third part deals with borrowing in the capital markets (that is, without involving a bank as a lender), both domestically in Australia and internationally. The unit is principally focused on how Australian companies borrow money both in Australia and in other international markets. The course deals with Australian law and also English and European law and US tax and regulation in so far as they affect Australian companies accessing the international markets. An understanding of common law contract law is assumed and some understanding of company law would be of benefit but is not required.

On completion of this subject, students will be able to:

• Creatively apply knowledge and understanding of the basic principles of the law and the practice of corporate finance to new situations for further learning such as those that will be introduced and examined in both the class participation assessments and the written assessments for the unit;
• Investigate, analyse and synthesise complex information, problems, concepts and theories in relation to legal and commercial aspects of various forms of debt finance, including secured and unsecured transactions and other forms of raising debt, including the debt capital markets and solve related questions;
• Research the concept of the 'capital markets' particularly debt capital markets as a means of raising funds by Australian issuers in both the Australian domestic market and in the international capital market, based on knowledge of appropriate research principles and methods so as to be able to understand how these markets operate and to be able to assess critically the regulation of these markets; and
• Use cognitive, technical and creative skills to generate and evaluate at an abstract level complex ideas and concepts relevant to the international financial transactions in the context of market practice having regard to the legal, contractual, regulatory and taxation regime in Australia, the European markets and to a limited extent, the US market.

1. Presentation and Question and Answer session at a Workshop: 15%
2. Class participation and written note on an assigned topic: 25%
3. Research assignment (4500 words): 60%

Students are required to attend 36 hours of lectures over the duration of this semi-intensive unit