Security interest law in Serbia

Guarantees

1. Can an intercompany guarantee be granted?

1.1 Upstream?

Yes, subject to restrictions.

1.2 Downstream?

Yes, subject to restrictions.

1.3 Lateral?

Yes, subject to restrictions.

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)?

Transfer prices - taxation based on the arm’s length principle. 
Foreign exchange restrictions.

Security

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, but not fully enforceable in practice.

4.4 Receivables

Yes

4.5 Bank account 

Yes, but only funds available at the existing bank accounts at the moment of establishing the pledge.

4.6 IP/Trademark

Yes

4.7 Equipment/Plant/Machinery

Yes

4.8 Inventory

Yes

4.9 Insurance

Only receivables to be collected under insurance policies.

4.10 Rights under a contract

Yes, if assignable.

5. Can security interests be granted to a foreign lender?

Yes, subject to FX restrictions.

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

Perfection

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

8.1 Notarised?

No, except for share pledge and extra-judicial mortgage agreements/statements.

8.2 Registered?

Yes

8.3 Other? 

No

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

No

10. Is there any stamp or similar tax or duty payable on the security document? 

Yes, pledge registration fees, court fees and cadastral fees.

Enforcement

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?

Yes, except for a sum of movable assets (e.g. goods in specific warehouse or store, inventory, etc).

11.5 Documents concerning ownership of secured asset?

No, except mortgages.

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?

Yes

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?

Yes

14. Is an instrument for direct enforcement necessary/available/market practice?

Yes

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?

No, a private sale at market value is permitted if agreed.

17. Can a transfer of all or part of the debt be made without affecting the security over the assets?

No

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

N/A