Bosnia and Herzegovina

Security interest law in Bosnia and Herzegovina

1. Can an intercompany guarantee be granted?

1.1 Upstream?	Yes
1.2 Downstream?	Yes
1.3 Lateral?	Yes
2. Can a guarantee be given under foreign law (e.g. English law)?	If it contains a foreign element, e.g. if one party is a foreigner.
3. Any special arrangements (e.g. to deal with transfer pricing/corporate benefit)?	Corporate approvals and insolvency rules.

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, except mortgages.
8.2 Registered?	Yes, for mortgages and pledges over stocks.
8.3 Other?	Written form.
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?	Yes

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, for mortgages and pledges over stocks.
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?	Yes, for mortgages, and if possible, other assets.
11.5 Documents concerning ownership of secured asset?	Yes, for mortgages.
11.6 Documents concerning debt in respect of which the asset is being secured?	No, unless expressly requested by the notary public.

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?	Yes, if stipulated as an enforcement event.
12.3 When the debtor becomes insolvent?	Yes, as part of the insolvency procedure where there is a special status for secured creditors.
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?	N/A
15. Are powers of attorney to the secured party used to facilitate a sale of secured assets in an enforcement situation?	No
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?	The security will follow the debt.
18. Is there anything else of which a lender should be aware as unusual or particularly difficult?	Some Land Registries are not updated so may contain incorrect information, so taking mortgages can be complex and may involve risks. Length of enforcement procedure. Conflict of law issues.