The Short-Lived Hungarian Floating Security and the Scottish Experience with the Floating Charge

The Short-Lived Hungarian Floating Security and the Scottish Experience with the Floating Charge
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This is a past event

After the fall of the Berlin Wall, Hungary – like most of the other post-Communist states of Central and Eastern Europe – began its transition with the aim of building the foundations of a working democratic political system and a market economy. This importantly included the reform and modernization of its secured transactions (personal property security) law with the help of the European Bank for Reconstruction and Development. A local version of a floating security was introduced as well with the 1996 amendment of the Civil Code from 1959. The floating security became relatively well-received by banks and the business community.

Nonetheless, the drafters of the 2013 new Civil Code discarded the security device. Little information was given regarding the reasons for this. No attention whatsoever was attributed to problems with enforcement and the floating security’s links with insolvency law, which did not work properly in the post-1990 period. The claim Prof Tajti would like to make is that it was a mistake not to examine experiences of other systems, focusing here on Scots law’s adoption of an adapted version of the English floating charge and of the linked receivership system. These would have ensured proper understanding of this important security device, in particular the details concerning its enforcement and the interplay with insolvency law.  

Speaker
Professor Tibor Tajti
Hosted by
School of Law
Venue
Hybrid Event (On Campus Venue - Old Senate Room)
Contact

Seminar is Free to attend. Please contact Mr Georgi Chichkov event link at georgi.chichkov@abdn.ac.uk