The Civil Code of Georgia, which came into force in 1997, replaced the previous provisions on secured transactions contained in the 1994 Law on Mortgage. The Code provides that the charge can be either possessory or non-possessory but if it is non-possessory registration is required. In 2009-2013 a range of amendments were introduced to the Georgian Civil Code, aimed at modernisation of the secured transactions regime. As part of these reforms, the range of assets that can be used as security has been broadened and it is now possible for the security interest to extend to the products, proceeds and substitutes of collateral. Parties may agree when signing the security agreement that an out-of-court enforcement will be available. Further, in 2011 Georgia introduced a central collateral registry with an electronic database accessible online. The government is considering reforming the secured transaction law.
World Bank, Business Reforms in Georgia
Last Checked August 2020
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