The common law-inspired reform of secured transactions was first introduced in Hungary in 1996 by way of an amendment to the Civil Code. The law in this area was further updated in 2013 when the new Civil Code was enacted (in force since 15 March 2014). This recent reform brings the Hungarian law even closer to the unitary model originating in Article 9 UCC. In particular, the reform introduced registration by notice filing and a greater reliance on out-of-court enforcement.

Hungarian Civil Code (in Hungarian)

English translation of the Hungarian Civil Code is not currently accessible online free of charge (to the best of our knowledge) but is available to purchase (click here to be directed to the publisher’s website).

Literature

Tibor Tajti, “Post-1990 Secured Transactions Law Reforms in Central and Eastern Europe”, The Bulletin of Public Notaries 10/2013 (on SSRN or Researchgate)

Zsofia Olah & Csongor Istvan Nagy, ‘Enforcement of Contracts in Hungary’, in: Messmann & Tajti (eds), The Case Law of Central and Eastern Europe – Enforcement of Contracts (Eur. University Press, Bochum-Germany, 2009) 216-316

Tibor Tajti, Comparative Secured Transactions Law (2002 Akademiai Kiado) chapter on Hungary – discussing the first two waves of secured transactions reforms from the perspective of common law (primarily UCC Article 9)

Tibor Tajti, National Report on Central and Eastern European Systems – Hungary, Poland and Lithuania, in: G. McCormack & R. Bork (eds.), Security Rights and the European Insolvency Regulation (Intersentia, 2017).