hard and fast rule definition
hard and fast rule rule means that rights in rem can never be affected by the opening of insolvency proceedings, even if both the COMI State and the law of the place where the assets are situated (the lex situs) permit such an effect. At least three other possible interpretations have been suggested however. On the first alternative, while the right in rem will not be limited by law of the COMI, it will be bound by any limitations imposed by the lex situs. The second alternative suggests that the right in rem is circumscribed to the extent that the limitations of the lex situs correspond with those of the COMI state.24 The third alternative suggests that a right in rem is affected by whatever limitations are lesser – those of the COMI State or the lex situs. This interpretation means that secured creditor may benefit from the differences between the two legal regimes of the COMI and the lex situs. The secured creditor benefits even more however from the prevailing interpretation which is the ‘hard and fast rule’ that a creditor with a right in rem may exercise its rights without any exception or limitation. The other interpretations are plausible