Expert Guide on Security and Guarantees in Slovakia

Yes, in the form of a suretyship (ručenie).

Yes. It is a secondary obligation dependent on the validity of the principal obligation, with the guarantor and the principal debtor being jointly and severally liable.

No.

Yes, subject to the considerations listed in section 4 below.

Financial assistance:

A Slovak joint-stock company (JSC) is generally prohibited from providing “financial assistance” in the purchase of its own shares or shares of its direct or indirect parent company. This includes making an advance payment, a loan or credit or granting security/guarantee to the/for the benefit of the acquiror of these shares. As of 1 March 2024, a JSC can provide financial assistance if it fulfils the following conditions (referred to as the “whitewash procedure”):

financial assistance must be provided on an arm’s-length basis (especially considering the applicable interest rate and the security package in the structure) and from the company’s available funds;
the provision of the financial assistance must be allowed by the company’s articles, which may stipulate further conditions;
the necessary corporate resolutions/reports, such as a written report from the board of directors, supervisory board and the two-thirds majority approval of the shareholders at the general meeting are required; and
a special reserve fund in the amount of the financial assistance provided is created that will likely effectively prevent the JSC from providing the financial assistance in practice.

Capital maintenance rules:

For creditor protection, there is another restriction, the so-called prohibition on capital repayment. Under Slovak law, the return of capital is prohibited and also applies to a performance without adequate consideration if the company provided it on the basis of a legal act negotiated with or for the benefit of a shareholder, including any security or guarantee provided by the company for the obligations of the shareholder (i.e. upward guarantee). As a result, the statutory body is obliged to enforce the unpaid consideration, for which it is liable not only to the company but also to the company’s creditors. The invalidity of the underlying transactions cannot be excluded due to the absence of case law.

Conflict of interests:

Slovak law addresses situations where there is a potential or actual conflict of interests between a JSC and certain persons (including members of the elected bodies of a Slovak company, procurists and other persons entitled to act on behalf of the company, as well as persons who are closely related to them or entitled to act on their behalf). Such transactions are subject to approval by the supervisory board and must be under standard market conditions; supervisory board approval is not required if the performance is made by the controlled person in favour of the controlling person.

Transfer pricing rules:

Transfer pricing rules require that transactions between related parties be conducted on an arm’s-length basis, i.e. in line with what would be agreed between unrelated parties in a similar transaction. Failure to comply with transfer pricing rules can result in tax adjustments and penalties.

A guarantee must be in writing to be valid and enforceable. In the event of a potential dispute, the Slovak court or other authority deciding the dispute will likely require the document in the Slovak language or a certified Slovak translation of it.

A guarantee may cover only the valid obligation of the debtor or a part of it. However, a guarantee is not excluded if the debtor’s obligation is null and void solely because of the debtor’s lack of capacity to assume the obligations of which the guarantor was aware at the time the guarantee was given.

The law does not regulate the specific content of the guarantee; however, the guarantee must contain the basic requirements for the validity of legal acts, i.e. the identification of the parties (identification of the creditor, debtor and guarantor) and the subject of the legal acts, including a specification of the obligation covered by the guarantee, and the expression of will (an expression of the guarantor’s intention to satisfy the creditor’s claim if the debtor fails to do so).

Yes.

Suretyship: A suretyship may also secure an obligation that arises in the future or is contingent on the fulfilment of a condition. However, the guarantor is liable for the debtor’s obligations up to the amount specified in the guarantor’s declaration.
Pledge: A pledge may secure monetary or non-monetary claims that may arise in the future or that are contingent on the fulfilment of a condition, provided that there is an agreement between the parties as to the maximum amount of the obligations secured.

A guarantee may be used only to secure the valid obligation of the debtor. However, a guarantee is not excluded if the debtor’s obligation is null and void solely because of a lack of capacity on the part of the debtor to assume the obligations of which the guarantor was aware at the time of its declaration of guarantee.

The indemnity concept (within the meaning of Anglo-American laws) is not expressly recognised under Slovak law.

Yes, a security/guarantee may continue for the period during which the secured obligations remain outstanding, if construed properly from the outset.

Yes.

The foreign direct investment regime might be relevant on enforcement of certain security instruments.

Slovak law recognises a joint and several creditorship and agency structures.

The concepts of parallel debt and trust (within the meaning of English law) are not expressly recognised under Slovak law, but they can be used in cross-border transactions, if they are established under foreign law governed documents.

instruments. On assignment of the secured claim, the rights under the guarantee/security pass to the new creditor. The original creditor must notify the guarantor/security provider of the assignment of the claim or the new creditor must prove the assignment to the guarantor/security provider.

In general, no additional documents regarding the security or guarantee are required. However, it is customary to execute the transfer certificate mainly for the purposes of re-registration in the relevant registers in the Sovak Republic.

General changes to guaranteed/secured obligations: The requirement for an amendment or confirmation of the guarantee/security should be individually assessed considering the extent and nature of such changes and the terms of the guarantee/security, as they can have various impacts on the security/guarantees provided, e.g. the changes in the amount of the guaranteed or secured obligations do not always require release and retake of the underlying security or guarantee.

Amendments that result in an increase in the surety’s liability require the surety’s consent, otherwise they would not be covered by the guarantee.

If the changes affect the terms reflected in the registers, the latter must be updated.

The priority of claims to any excess over the amount of the secured obligations reflected in the pledge registers will be determined at the time of registration of the increase of the secured obligations on the basis of the then existing records in the pledge registers.

Changes to the principal debtor: The security and the guarantee will remain in place only in certain cases of legal succession of the principal debtor and under certain conditions, e.g. legal succession due to a merger or an acquisition of the assets and accession to the finance documents might not affect the provided guarantee/security. However, please note that not every legal succession will have such effect and under certain conditions the collateral may even cease to exist (typically ownership interest or shares in the subsumed company may cease to exist due to a merger). Therefore, those situations when the original debtor is replaced by a new debtor will usually require a legal analysis by an advisor.

When creating security as a right in rem, it is recommended that the security document follows the governing law of the underlying asset which is very practicable especially in an enforcement scenario.

The submission of disputes relating to a private legal relationship to foreign courts, provided that such legal relationship involves a foreign element (i.e. a non-resident as the counterparty), is not contrary to Slovak law and should, in principle, be enforceable in Slovakia.

However, the jurisdiction of the Slovak courts is mandatory if the dispute falls within the exclusive or special jurisdiction/competence of the Slovak courts, e.g. involving real estate or the validity of entries in public registers.

Submission to arbitration is valid and enforceable. In the absence of a treaty on the mutual recognition and enforcement of court judgments between Slovakia and a relevant foreign jurisdiction, a court judgment obtained in such foreign jurisdiction may be recognised and enforced by a court in Slovakia on the basis of reciprocity (under Slovak procedural rules, reciprocity is presumed unless proven otherwise).

The recognition and enforcement of a foreign arbitral award or a foreign court judgment in Slovakia is subject to compliance with the relevant enforcement procedures under Slovak law and international treaties ratified by Slovakia (including the 1958 New York Convention).

Yes, each payment exceeding EUR 15,000 must be made by wire transfer. The prohibition of cash payment applies to cash transfers performed:

in Slovakia; or
abroad if the cash transfer relates to a performance made in Slovakia and the cash transferor or the cash recipient are permanently/temporarily residing or have their seat in Slovakia.

Please note that Slovak law stipulates certain exemptions from this prohibition such as the transport/management of cash, exchange service, regarding tax/tariff laws, in emergency situations under special laws.

In accordance with Slovak foreign exchange regulations, payments in foreign currency or money transfers abroad may be suspended for the duration of a foreign exchange emergency situation. The emergency situation may be declared by the Government of the Slovak Republic in the event of adverse developments in the balance of payments, which directly and seriously endanger non-domestic payment ability or domestic currency balance of the Slovak Republic.

As of 1 April 2025, the tax on financial transactions may also apply.

In bankruptcy proceedings, a trustee (alternatively a creditor) may challenge the transaction without (adequate) consideration harmful to the satisfaction of other creditors within one year from the declaration of the debtor’s insolvency; afterwards, this right expires. Hardening periods depend on the type of avoidable transaction and further aspects: (i) in general one year; (ii) three years if it is a transaction for the benefit of a related party; (iii) five years in the case of intentionally detrimental transactions or criminal penalty of property confiscation related to transactions at undervalue or preferential transactions; or (iv) ten years in the case of property confiscation related to intentionally detrimental transactions. The clock starts running as of the commencement (declaration) of bankruptcy.

In general, it is mandatory to include a precise specification of each type of collateral and have the security (granted in form of a pledge/mortgage) registered in the respective register (handover of movable assets is also possible but no longer used in practice).

a. bank accounts;	Yes. The prior consent of a bank may be required.
b. receivables;	Yes. The prior consent of a sub-debtor may be required.
c. IP rights;	Yes.
d. shares (public or a private company, listed or not listed)	Yes. Specific steps are stipulated by the law regarding the perfection of a security over shares. In the case of share certificates that are transferable by endorsement, a written declaration by the holder of the share certificate(s) on the share certificate(s) is also required. In addition, the Central Securities Depository must mark the "pledged" stamp directly on the share certificates. The articles of association of a company may require the consent of a corporate body (shareholders’ meeting/board of directors) for the creation of a pledge Note: It is impossible to create a pledge over shares that are already pledged.
e. rights in a company (other than shares);	Yes, provided that the articles of association of a company enable the transfer of the ownership interest and the conditions for the assignability are fulfilled in accordance with the articles of association (e.g. approval of the general meeting is granted). The security over the ownership interest as such is perfected by registration in the relevant Commercial Register. In the case of dividends or other shareholder rights, the security is perfected by registration in the Central Notarial Register of Pledges.
f. insurance rights;	Yes. The prior consent of an insurance company may be required.
g. inventory (goods in turnover);	Yes.
h. equipment/plant/machinery/other movables;	Yes.
i. goodwill;	Not as such, as there is no concept of goodwill under Slovak security law. Instead, lenders usually use pledges of assets that constitute "goodwill"—IP rights, key contracts, shareholdings, etc.
j. real estate property (other than land);	Yes, provided that such real estate property is an individual thing within the meaning of civil law and the security is not prohibited under special laws.
k. land;	Yes, provided that such real estate property is an individual thing within the meaning of civil law and the security is not prohibited under special laws.
l. objects under construction (object of unfinished construction);	Yes, provided that the construction is in the phase of construction recognised by Slovak building law as an object under construction and the security is not prohibited under special laws. The cadastral number of the land underlying the object under construction must be specified. Alternatively, if the construction does not legally form part of such land, it may theoretically be pledged as a movable or immovable non-registered asset.
m. lease rights to real estate, including land;	Yes. The prior consent of a counterparty may be required.

In principle, yes. In practice, however, it is uncommon to combine assets in a single security agreement if it is necessary to register the pledge in different relevant registers.

Floating security is possible under Slovak law.

Yes, subject to the considerations listed in section 4 above.

Neither security has to be created in the form of a notarial deed.

Most security agreements do not have to be notarised, e.g. receivables pledge agreement, agreement on pledge over movable assets or mortgage agreement. However, in some cases it is necessary to have a notarised signature of the contracting parties, e.g. ownership interest pledge agreement and pledge agreement in the case of other types of corporations.

In general, the pledge is perfected and thus also enforceable only if it is registered in the relevant register, e.g. the Central Notarial Register of Pledges, the Real Estate Cadaster, the Commercial Register, the Pledge Register of the Industrial Property Office of the Slovak Republic, the Pledge Register of the Central Securities Depository.

A pledge of movable assets may also arise when it is handed over to the pledgee or to a third party for safekeeping, if the pledgor and the pledgee have so agreed. A pledge thus created may be registered in the Central Notarial Register of Pledges at any time during the term of the pledge. However, a pledge over such movable assets registered in the Central Notarial Register of Pledges has preference over the pledge created only by the handover of the respective movable assets.

It depends on the register in which the pledge is to be registered.

Pledge agreements, which are registered through notaries in the Central Notarial Register of Pledges, do not have to be drawn up in Slovak (although some notaries may still require a Slovak language version).

Security agreements registered in other registers, such as the Real Estate Cadaster or the Commercial Register, must be drawn up in Slovak or officially translated into Slovak.

In general, security agreements have to be executed in writing and contain mandatory terms provided by law.

Any collateral to be pledged must be assignable. It is therefore always necessary to check that the assignability of the collateral is not restricted (e.g. a consent of a sub-debtor or a corporate body is required) or excluded altogether.

A security over receivables is effective once the sub-debtors are notified of its existence or the same is proved to them.

a. bank accounts;	The creation of the pledge needs to be notified to the bank (however, a failure to notify does not affect the enforceability of the pledge).
b. receivables;	The sub-debtor must be notified of the creation of the pledge.
c. IP rights;	N/A
d. shares (either of a listed company or a private company);	N/A
e. rights in a company (other than shares);	The pledge has to be notified to the company, unless the company is a party to the security agreement.
f. Insurance rights;	The insurer must be notified of the creation of the pledge
g. Inventory;	N/A
h. Equipment/plant/machinery;	N/A
i. Goodwill;	N/A
j. Real estate property (other than land);	Possible notification of the pledge to the insurer (if any).
k. Land;	Possible notification of the pledge to the insurer (if any).
l. Objects under construction (object of unfinished construction).	Notification of the pledge to the insurer (if any).
m. lease rights to real estate, including land;	N/A

Yes. However, registration does not prevent a future disposal by the debtor of the collateral, but the security passes with the transfer of the collateral.

The law is based on the principle of priority. The date of registration of each pledge is recorded in the relevant pledge register. The ranking may also be subject to an agreement between creditors, who may wish to have a different ranking.

If there is more than one pledge on a movable asset and one of them arises from the hand-over of the movable assets (i.e. the pledge is created by transfer, not by registration in the Central Notarial Register of Pledges), the pledges registered in the Central Notarial Register of Pledges have priority for the satisfaction of the pledges in the ranking of their registration.

There is no unanimous view in literature as to whether a registered pledge automatically takes priority over an assignment of right (zabezpečovací prevod práva) that was contractually agreed before the date of the pledge’s registration.

In insolvency proceedings, pledges may be ranked differently by operation of law, regardless of when they were registered.

Establishment of security and level of security regulation is generally:

Security is easily established, and encumbrances are easily checked.

a. Application for registration	Yes. There are prescribed forms for the pledge registration. The form of the application depends on the pledge register to which it is submitted. For example, an application must be submitted in paper form to the notary or the Central Securities Depository. However, an application to the Commercial Register can only be submitted electronically. At the Real Estate Cadaster, it is possible to submit an application either electronically or in paper form.
b. Security/guarantee document	Yes, but in some cases, instead of the pledge agreement itself, a confirmation of the content of the pledge agreement is attached to the application (e.g. registration of the pledge with the Central Securities Depository).
c. Principal obligation agreement	No.
d. Title documents to the collateral	No.
e. Other	Documents evidencing the authority of the applicant (a power of attorney, extract from foreign Commercial Register, including the apostille as applicable, etc.). Furthermore, some pledge registers require additional annexes, e.g. a declaration of the content of the pledge agreement, AML documentation, sworn affidavits, corporate resolutions as applicable.

Not in the case of pledge agreements, which require notarised signatures (e.g. when establishing pledge on shares/ownership interests).

Security agreements, for which the simple written form is sufficient, can be signed in electronic form with qualified electronic signatures and are deemed equal to written agreements signed with a wet-ink signature.

Current market practice is to have the security documents executed by handwritten signatures.

Guarantee: No, there is no public register of guarantees.

Pledges: Yes, pledge registers are publicly available and accessible online.

In most cases, the pledgor is entitled by law to register the pledge. Therefore, the standard part of the pledge agreements is an authorisation clause, i.e. the pledgor authorises the pledgee to register the pledge.

However, a pledge of shares/ownership interests can be registered by both the pledgee and the pledgor without a special authorisation as mentioned above.

In addition, the pledge can be registered by a third party under a power of attorney.

Time: Quick.

Costs: Low.

For example, encumbrances on real estate are visible in title deeds in the Real Estate Cadaster, available online. Title deeds accessible in the online Real Estate Cadaster cannot be used for legal purposes. However, extracts usable for legal purposes from the Real Estate Register are obtainable for EUR 12 (the price may vary depending on the number of parcels/buildings, etc.).

Time: Quick/Medium. The notary will carry out the registration in due course. However, the Real Estate Cadaster and the Central Securities Depository will carry out the registration within the time limit set by law. Sometimes these deadlines are not met due to the offices being overloaded.

Costs: Each pledge registry has its own price list or its own implementing regulation that determines the costs, so it is impossible to give a general answer. In some cases, the costs are fixed at a single amount, e.g. registration or deregistration of the pledge in the Commercial Register of EUR 50. In other cases (e.g. pledge registration in the Notarial Central Register of Pledges or in the pledge register of the Central Securities Depository), the costs are determined depending on the amount of the secured debts.

N/A

The costs for a notarised signature are insignificant.

The cost of apostilling foreign public documents (or super-legalisation), if applicable, and translations must be taken into account.

Yes.

Yes, if it is agreed in the principal obligation agreement (additionally to a non-payment of the secured due debt).

Generally yes, within and subject to the insolvency proceedings.

any other security holder starts enforcement against the same collateral;
liquidation of a legal entity that is the security provider (owner of the collateral).

Yes, the pledgee is obliged to notify the pledgor and the debtor (if these are different) in writing of the commencement of the enforcement of the pledge and, in the case of pledges registered in the pledge register, to register the commencement of the enforcement of the pledge in the pledge register. In the written notice of the commencement of enforcement of the pledge, the pledgee must state the manner in which it will satisfy or attempt to satisfy the pledge.

There is a compulsory 30-day period in which a pledgee must not enforce the security. This period starts from the latter of the receipt by the pledgor (and the debtor if different from the pledgor) of the notification of enforcement or publication of the initiation of the enforcement in the relevant pledge register.

Yes, Slovak law recognises private methods of enforcement, including:

Direct sale of the collateral: If a "direct sale" is agreed in the pledge agreement as the method of exercising the pledge, the pledgee may sell the collateral according to the conditions set out in the pledge agreement. A valuation of the collateral on the basis of an expert’s opinion is usually agreed to determine the price.

Public tender procedure: In principle the same applies as above to a direct sale of the collateral.

Pledge over receivables: In the case of a pledge over receivables, e.g. from lease contracts, the pledgee must notify the lessee to pay the payments (rent fees) to the pledgee’s account, where it collects them and, after observing the legal deadlines, it can set off the collected payments against its secured liabilities.

Voluntary auction: A lender must obtain an “execution title”, i.e. an enforceable court decision or an arbitral award declaring that the borrower is required to pay the secured debts. Alternatively, it is possible to execute an agreement (as a part of a security package) in the form of a notarial deed in which a borrower grants consent to direct enforcement. In such case, the notarial deed may serve as an execution title.

For a pledge, the law does not regulate the determination of the price for the sale of collateral. It is therefore recommended to agree on the collateral’s value or the procedure for its determination for the purpose of enforcement in a security agreement. In practice, the most common way to determine the value of collateral is to use a valuation report (expert opinion).

No, it cannot be agreed that the pledgee automatically acquires title to the collateral. In general, any such agreement concluded before the maturity of a will be null and void. Such agreement would be possible only after the maturity of the underlying debt.

Yes, if parties agreed so in a security document or a separate agreement.

For a public auction, a lender must obtain an “execution title” (an enforceable court decision or an arbitral award declaring that the borrower is required to pay the secured debts). Alternatively, it is possible to execute an agreement (as a part of a security package) in the form of a notarial deed in which a borrower grants a consent to direct enforcement. In such case, the notarial deed may serve as an execution title.

Yes, the principal obligation can be enforced on the basis of a notarial deed of direct enforceability, which is an enforcement title.

Yes, e.g.:

see section 30 above (Set-off: pledge over receivables);
for a pledge of bank accounts, enforcement can be done by way of contractual debiting of the funds by a servicing bank.

Yes, powers of attorney are usually included directly in the security documents. This is not mandatory, but strongly recommended.

a. bank accounts;	Yes, not mandatory, but recommended or required by the respective bank operating the bank account(s): a fund debiting or similar agreement may be entered into by the pledgee, the pledgor and the bank to further specify the parties’ obligations/actions in an enforcement scenario, to set out additional notification requirements for the bank and to address any specificities of the currency control regulations.
b. receivables;	Yes, not mandatory, but recommended: the notification of the sub-debtor contains an authorisation of a secured creditor by a security provider to instruct the sub-debtor to transfer/block payments from receivables or it further details the parties’ obligations/actions in an enforcement scenario (e.g. set additional notification obligations for the sub-debtor).
c. IP rights;	Yes, not mandatory, but recommended. See the general comment under No. 31 above.
d. shares (either of a listed company or a private company);	The sale of shares is possible only through the licensed securities dealer.
e. rights in a company (other than shares);	Yes, not mandatory: Assignment of the right to payment of dividends.
f. Insurance rights;	Yes, not mandatory but recommended: (i) same as for receivables; and (ii) designate the pledgee as the loss payee in a pledged insurance contract or the notification of the pledge sent to the insurer.
g. Inventory;	Yes, not mandatory but recommended (although not always practically possible): if the collateral is held in third-party storage facilities, notice of the pledge to such third party together with the pledgor’s instruction to release the collateral to the pledgee in the event of enforcement and acknowledgement of the same.
h. Equipment/plant/machinery;	The same as for inventory.
i. Goodwill;	N/A.
j. Real estate property (other than land);	Yes, not mandatory, but recommended. See the general comment under No. 31 above.
k. Land;	Yes, not mandatory, but recommended. See the general comment under No. 31 above.
l. Objects under construction (object of unfinished construction).	Yes, not mandatory (unless mortgage is established by way of assignment of such rights): assignment of rights under general construction contract.

The private methods of enforcement remain largely untested in the market, but they are more effective and quicker than enforcement by public auction.

In practice, it is important to have as much information about the collateral as possible and check if it really exists, as later getting physical access to the collateral and information relating to it may be problematic if the security provider actively prevents the enforcement.

Enforcement by public auction may take several months and enforcement by public executor may be slower.

fairly easy,
balanced,
average, but quick for some types of security, e.g. bank account pledges, pledges over receivables

No. The laws in the area are rarely changed, although a new civil code has been in preparation for several years.

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CMS Expert Guide for taking security in Slovakia

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GUARANTEE

1. Can a guarantee be granted by one entity/person to secure obligations of another entity/person?

2. Is guarantee treated under the law as:

2.1 a type of security?

2.2 a financial service?

3. Can a corporate guarantee be granted:

3.1 Upstream?

3.2 Downstream?

3.3 Lateral?

4. Are there any special aspects to be taken into account in relation to granting a guarantee (e.g. financial assistance, transfer pricing, corporate benefit, any other limitations)?

5. Are there any formal requirements or practical recommendations for the execution, validity and/or enforceability of a guarantee?

PRINCIPAL OBLIGATIONS

6. Is it possible for a guarantee/security to secure future obligations?

7. Is the validity of a guarantee/security dependant on the validity of a principal (guaranteed/secured) obligation? Does the concept of indemnity exist or would be recognised under the law?

8. Can guarantee/security be continuing for as long as guaranteed/secured obligations remain outstanding or shall it have a definite term?

9. Can guarantee / security be granted to a foreign creditor?

10. Is it possible for a guarantee and/or security to be created by way of parallel debt/trust/agent structures?

11. In case of transfer of guaranteed/secured liabilities to a new creditor (partially or fully), what are the formalities required to ensure that the guarantee/security package is maintained in favour of a new creditor?

12. In case of any changes to guaranteed/secured obligations (including a change of a principal debtor, adding another debtor), what are the formalities required to ensure that the guarantee/security package is maintained in favour of a creditor?

13. Are there any restrictions regarding the governing law of a guarantee/security?

14. Are there any restrictions regarding submission of disputes under guarantee/security to foreign courts’ jurisdiction or to arbitration?

15. Are there any currency control/capital movement restrictions with respect to guarantees, security or loans?

16. What is the hardening period with respect to guarantee/security?

SECURITY

17. Is it possible to have security over:

18. Is it possible to create security over multiple assets by one security document? Is floating security possible?

19. Can a security be granted to secure liabilities of a holding company, a shareholder, a subsidiary or any other affiliate?

20. In order to be enforceable against third parties, must a security/security agreement be:

20.1 Notarised?

20.2 Registered?

20.3 Executed in/translated into local language?

20.4 Other?

21. Does registration in most cases protect the secured creditor against the debtor’s subsequent dealings with the collateral?

22. How is the priority/rank of security established?

EXECUTION AND PERFECTION MECHANICS, TIMING AND COSTS

23. Can a guarantee/security be executed by way of e-signing?

24. Are registers of guarantees/encumbrances over movable/immovable assets publicly available and accessible online?

25. Which party shall/can apply for registration of security in a relevant register?

26. What documents need to be submitted and in what form for the guarantee/security registration with a relevant register?

27. How much time and cost does it take to:

27.1 check if any encumbrances over collateral exist (i.e. obtain extracts)

27.2 register/deregister/amend/remove an encumbrance in a relevant register?

27.3 notarise (if required) a security document?

27.4 comply with other perfection requirements?

SECURITY ENFORCEMENT

28. The right to enforce security arises when:

a. the secured debt is unpaid and due?

b. there is any other breach under the principal obligation agreement?

c. there is any other breach of the pledge/security agreement?

d. the debtor or guarantee/security provider becomes insolvent?

e. any other grounds?

29. Is there any mandatory period for curing a default and/or any other formalities to be fulfilled before proceeding to enforcement?

30. Is out-of-court security enforcement available? Is any additional instrument for direct enforcement required?

31. Which out-of-court enforcement methods are available and how the collateral value is determined thereunder:

31.1 taking over the title to the collateral?

31.2 selling collateral to a third party by way of direct sale or private or public auction?

31.3 notarial writ?

31.4 other?

32. Are powers of attorney or any other (conditional) instruments used to facilitate an out-of-court enforcement by a secured party? Are they mandatory or recommended?

33. Is there anything else of which a creditor should be aware as unusual or particularly difficult?

34. Is security enforcement in practice: generally easy, fairly easy or complicated? –more debtor- or creditor-friendly or balanced?– quick, average or long in terms of timing?

35. Are there any upcoming changes to guarantee/security regulations/rules?

Last updated · 26 May 2025

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