Slovakia

A new charge law introduced in 2002 by way of an amendment to the Slovak Civil Code was based on the European Bank of Reconstruction and Development (EBRD) model law. It introduced, as of 1st January 2003, a single, centralized and computerized charge register operated by the Slovak Chamber of Notaries. The register enables immediate registration of non-possessory security at any notary’s office and is searchable online free of charge through their website. The law allows a considerable degree of flexibility in the secured transaction: charges can be taken over any type of asset capable of being transferred, including movable and immovable assets, rights and receivables, as well as constantly changing groups of assets (e.g. inventory, trade receivables), which elsewhere would typically be subject to a floating charge.

A major amendment to the Slovak Commercial Code and the Slovak Act on Bankruptcy and Restructuring, passed by the Slovak Parliament in October 2014, was vetoed by the President in December 2014. It remains for the Parliament to decide whether to override the veto. If adopted, the amendments will, among others, significantly strengthen the position of creditors who benefit from  retention of title clauses as such creditors would be granted similar position as other secured creditors.

Literature

K Mathernová, ‘The Slovak secured transactions reform: ingredients of a successful reform and reflection on its achievements’ in F Dahan, J Simpson Secured Transactions Reform and Access to Credit (Elgar Publishing 2009)

 

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