ФУНКЦИЈЕ ЗАЛОЖНОГ ПРАВА
FUNCTIONS OF THE IN REM SECURITY RIGHTS

Summary/Abstract: The works of lawyers on the in rem security rights traditionally do not attach much attention to the analysis of the functions of security rights. The functions of such security rights, however, are of importance for due application and interpretation of the rules on security rights in property, as well as for the assessment of the legal regime of the in rem security rights from the point of view of their ability to fulfill the tasks of this legal institution. The security function is embedded in the very notion of the in rem security rights, because the purpose of such rights is securing the collection of the secured claim. As far back as a century ago, the function of obtaining credit was emphasized, because if the debtor cannot offer in rem security, the creditor shall, as a rule, deny him the credit, or award the credit under significantly less favorable conditions. In the modern times two more functions of the in rem security rights can be identified: unburdening the professional creditors, primarily banks, and making refinancing of professional creditors easier. These two functions of the in rem security rights, which are either less emphasized or not identified at all in the legal doctrine, are a consequence of the significance of the in rem security rights for the macroeconomic stability and proper operation of the financial system.

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