Financial Institutions and Markets

Authors: Siranus Hahamian and Diana Bejenaru

Opening remarks

It is widely acknowledged that the entry into force of the Civil Code in 2011, inspired by the Civil Code of Quebec and the Uniform Commercial Code of the United States of America, brought novelty elements to the system of securities provided for the enforcement of civil obligations[1]. A recently introduced institution in Romanian law and less used in practice is the assignment of rank of real estate / movable mortgages, as self-standing operation, not dependent on the claim and even on the mortgage right itself.

The assignment of rank may have a series of benefits by reference to financing contracts for various projects, especially those that involve the existence of several creditors and a dynamic of the latter during development and implementation.

From the perspective of the developer of the project (as a borrower) financed through such a contract, the co-participation of several banking institutions might represent both an advantage and an issue with respect to fulfilling the formalities necessary to ensure the publicity of the related securities.

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