Albania

Security interest law in Albania

1. Can an intercompany guarantee be granted?

1.1 Upstream?	Yes, if agreed between the parties.
1.2 Downstream?	Yes, if agreed between the parties.
1.3 Lateral?	Yes, if agreed between the parties.
2. Can a guarantee be given under foreign law (e.g. English law)?	Yes
3. Any special arrangements (e.g. to deal with transfer pricing/corporate benefit)?	No

4. Can a security interest be granted in the following type of asset?

4.1 Real property	Yes
4.2 Shares (privately held)	Yes
4.3 Shares (marketable securities)	Yes
4.4 Receivables	Yes
4.5 Bank account	Yes
4.6 IP/ Trademark	Yes
4.7 Equipment/ Plant/ Machinery	Yes
4.8 Inventory	Yes
4.9 Insurance	Yes
4.10 Rights under a contract	Yes
5. Can security interests be granted to a foreign lender?	Yes
6. Can multiple security interests be granted over the same asset?	Yes
7. Can a security interest be granted to secure liabilities of a holding company, a subsidiary or any other affiliate?	Yes

8. In order to be enforceable against third parties, must a security interest be?

8.1 Notarised?	No
8.2 Registered?	Not necessary, however it depends on the type of security interest.
8.3 Other?	No
9. Does registration in most cases protect the secured creditor against the debtor’s subsequent dealings with the secured asset?	Yes
10. Is there any stamp or similar tax or duty payable on the security document?	It depends on the type of security interest.

11. For a security interest to be legally enforceable which items must be filed as part of the registration or notarisation process?

11.1 Entire security agreement?	Yes
11.2 Names of pledgor and pledgee?	Yes
11.3 Description of secured asset in general terms?	Yes
11.4 Description of each individual secured asset?	No
11.5 Documents concerning ownership of secured asset?	Yes
11.6 Documents concerning debt in respect of which the asset is being secured?	Yes

12. Can a right to enforce security arise:

12.1 When the secured debt is unpaid and due?	Yes
12.2 When there is some other breach of the pledge/security agreement?	It depends.
12.3 When the debtor becomes insolvent?	Yes
13. Can the creditor enforce its security interest by taking possession of the asset and selling it without court assistance?	No
14. Is an instrument for direct enforcement necessary/available/market practice?	No out-of court enforcement modality is envisaged by Albanian law. The bailiff’s office cannot pursue the debt without a court order.
15. Are powers of attorney to the secured party used to facilitate a sale of secured assets in an enforcement situation?	Yes
16. If a sale is permitted without court assistance does it have to be made by public auction?	N/A
17. Can a transfer of all or part of the debt be made without affecting the security over the assets?	Yes
18. Is there anything else of which a lender should be aware as unusual or particularly difficult?	The initial enforcement costs are usually beared by the party demanding the enforcement, such as court expenses, lawyer costs and other related costs. Costs related to the Bailiff’s office are the debtor’s responsibility.