Lithuania

Since 2011 Lithuania has introduced a range of reforms to secured transactions law by way of amendments to the Civil Code (chapters on pledges and mortgages) and Code of Civil Procedure. The law that came into force on 1 July 2012 streamlined the procedure and elements required to create security over land (a mortgage). In addition, the reforms expanded the range of assets that can be used as collateral. Security can now be created over personal property in circulation – a pledge over goods in stock in circulation, enabling the pledgor to change the composition and form of the pledged goods and to sell them. Security can also be taken over a part of or the whole business enterprise, including its immovable property (mortgage). The execution procedure for pledges was simplified to allow for speedier out-of-court enforcement.

See further Lithuanian Civil Code (see in particular Articles 4.170-4.228 concerning mortgage and pledge)

The Lithuanian Notaries (Latvijas Notars) ‘Legal reform of Lithuanian mortgage system – for the benefit of business, society, and the state’, [2013] Jelgavas tipogrāfija

Literature

Lina Aleknaite, ‘Enforcement of Contracts in Lithuania’ in Stefan Messmann & Tibor Tajti (eds), The Case Law of Central and Eastern Europe – Enforcement of Contracts (European University Press, Bochum – Germany, 2009), 370 – 384.

Tibor Tajti, National Report on Central and Eastern European Systems – Hungary, Poland and Lithuania (with the cooperation of Prof. Lina Aleknaite van der Molen, Kazimieras Simonavicius University & Law Firm Eversheds Sutherland, Vilnius), in: G. McCormack & R. Bork (eds.), Security Rights and the European Insolvency Regulation (Intersentia, 2017).

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