Legal characteristic of the financial collateral arrangements Cover Image

Правна характеристика на договорите за финансово обезпечение
Legal characteristic of the financial collateral arrangements

Author(s): Ivan Mangachev
Subject(s): Social Sciences, Education, Law, Constitution, Jurisprudence, Civil Law, International Law, Higher Education , EU-Legislation, Commercial Law
Published by: Нов български университет
Keywords: Financial collateral arrangements; Legal characteristic

Summary/Abstract: This article provides an overview to the Bulgarian implementation of Directive 2002/47 EC (Financial Collateral Directive) in the national legislation. The Bulgarian parliament adopts this Directive in special act - Law on Financial Collateral Arrangements (Issued by the 40th National Assembly on 10 August 2006, published in State Gazette, issue 68 of 22 August 2006). The article starts with paragraph 1 on the historical roots of the financial collateral arrangement in their two forms: i) title transfer financial collateral arrangement; and ii) security financial collateral arrangement. The title transfer financial collateral arrangement was known to the Roman law as fiducia cum creditore contracta. In this contract between creditor and debtor, the debtor transfers the ownership over his specific property to secure his debt. If the debt was repaid the creditor has the obligation to transfer back the ownership to its previous owner. The security financial collateral arrangement may be found in the Roman law contarct - lex comissoria. In this security contract the creditor had the right to become an owner, only in case of repayments default. The paragraph 2 makes an overview about EU and national legislation, which have any relations to the financial collateral arrangements. The third paragraph deals with the legal definition and characteristics of these two security contracts. The paragraph 4 researches the contracts main and common elements, which are the relevant financial obligation and the financial collateral.In paragraph 5 the author makes compares the above mentioned contracts with the similar legal figures as cession, factoring etc. and make the distinguishing notes.The last sixth paragraph is dedicated to the conclusions and de lege ferenda proposals, which aim is to provide better legislation in the area of financial collateral law.

  • Issue Year: 2008
  • Issue No: 2
  • Page Range: 78-126
  • Page Count: 49
  • Language: Bulgarian