Saturday, February 04, 2012

Registers

Pledges

Serbian

The Register of Pledges on Movable Property and Rights

The Register of Pledges on Movable Property and Rights is kept by the Business Registers Agency, established by the Law on the Business Registers Agency (“Official Gazette of the Republic of Serbia”, no. 55/04). The Register of Pledges is a single electronic database containing data on pledges, amendments to and changes of data pertaining to the registered pledges, data on the commencement of settlement proceedings, entries on any disputes (on filing a lawsuit for the strike off of the pledge from the Register of Pledges, as well as proceedings concerning the subject matter of the pledge or the relationship of the parties in this legal transaction).

THE REGISTER OF PLEDGES is a database on pledges which are entered into the Register at the request of a party, in accordance with the Law on Registerd Pledges on Movable Property. The Business Registers Agency which keeps the Register, does not guarantee that in addition to registered pledges there are no other pledges on movable property and rights, while data entered into the Register in accordance with Art. 61 of the aforesaid Law, is not evidence that the pledger has ownership rights or other rights over pledged movable property, nor that the secured outstanding claims or pledges are valid.

The Register of Pledges begun its operations on 15 August 2005.

Art. 4, paragraph 1 of the Law on Registered Pledges on Movable Property prescribes that the right of pledge is acquired through registration into the Register of Pledges, unless otherwise prescribed by the law.

In accordance with Art. 30 of the Law, the payment dynamics with respect to the settlement claims of the creditors on the basis of the value of the pledged item, is determined depending on the time (day, hour and minute) when the application for the registration of the pledge was filed with the Agency.

The fact that a certain pledge has been registered into the Register of Pledges does not necessarily mean that there are no other pledges which are not registered into Register of Pledges.

All interested parties can access the data contained in the Register of Pledges through the website of the Agency, in the business premises of the Agency, during opening hours.

The establishment of a Register of Pledges will ensure better legal protection and provide fast, modernized service to the customers of the Agency, while the whole project has been designed in accordance with the latest trends in the European Union, better known as Electronic Governance and One-Stop-Shop.

Implementation of the Law on Enforcement and Security starts 17 September 2011

The Law o Enforcement and Security came into force on 17 May 2011 and its implementation starts as of 17 September 2011, except for the provisions referring to enforcement agents.

New legal solutions of influence on the procedure of registration of pledge rights

The right of pledge is acquired by registration in the Pledge Register
Article 9 stipulates that the enforcement creditor acquires the right of pledge by registering in the Pledge Register. According to Article 87 of the Law, the enforcement creditor acquires the right to register the right of pledge based on the minutes of the inventory of enforcement debtor’s movable assets, and the order of pre-emption in the acquisition of the right of pledge is established in accordance with the dates of registration in the Pledge Register.

Responsibility for registration of the right of pledge lies with the enforcement creditor
Article 88 of the Law closely defines the structure of the data that must be submitted for registration purposes and stipulates that the enforcement creditor is responsible for filing the application for registration of a judicial right of pledge.

Excerpt from the Pledge Register has the power of a writ of execution
Provisions of Article 13 of the Law foresee that the excerpt from the Register of Pledges on Movable Property and Rights has the powers of a writ of execution, provided that it contains the data making it enforceable within the meaning of Article 17 of the Law, i.e., if it contains the names of the enforcement debtor, enforcement creditor, asset, type and volume/scope of fulfillment of an obligation.

The decision by which the court has approved the issuance of guarantee constitutes the legal grounds for registration of the right of pledge
Article 27 of the new Law on Enforcement and Security stipulates that the proof of the issuance of guarantee constitutes one of the grounds for registration of the right of pledge.

The buyer of an asset which was the subject of enforcement is also entitled to request strike-off of the registered right of pledge
Article 99 extends the circle of persons entitled to file a request for strike-off of the judicial pledge right to include, in addition to the enforcement creditor, enforcement debtor or pledger, in case it is not the same person, (foreseen by provisions of Article 51, paragraph 1 of the Law on Pledge Right of Movable Assets Registered in the Pledge Register), as an actively identified person, the buyer of the movable asset sold in the enforcement procedure. A conclusion stating that the purchase price has been paid in full constitutes legal grounds for such strike-off.

The right of pledge over a share based on the writ of execution, i.e. enforcement order is to be registered in the Pledge Register
Article 199 of the Law stipulates that the right of pledge over shares based on the writs of execution, i.e. enforcement orders is registered in the Pledge Register, taxatively listing the data contained in the Pledge Register. Provisions of the same Article foresee that along with the above registration, a note on initiation of the enforcement procedure by way of forced sale of the share is also registered in addition to the effect of the registration reflected in the fact that by way of registration of the writ of execution, i.e., enforcement order, the enforcement creditor has acquired the right of pledge over the share. This removes the loopholes of Article 249 of the previously effective Law on Enforcement.

Order of settlement of pledgees’ claims
Provisions of Article 202 of the Law foresee that pledgees’ claims are to be settled based on the order of registration of the respective pledge rights in the Pledge Register.

Amounts of non-matured and contingent claims are set aside and deposited into the court deposit, i.e. onto the enforcement agent’s special purpose account
Article 203 paragraph 2 and Article 206 paragraph 1 stipulate that, in the claims settlement procedure, the amounts of claims not secured by the pledge right which have not matured or are conditional will be set aside and deposited with the court or enforcement agent and paid out when matured or when the delayed conditions are met.

Pledge right based on the agreement reached among the parties
Article 267 stipulates that the minutes of agreement reached among the parties constitutes the grounds for registration of the right of pledge and that the pledge right is acquired as of the moment of the registration of the agreement in the Pledge Register.

Privacy Statement