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Insolvency and Restructuring Guide

26 February 2015 / Iulian Patrascanu / Print article

Issues arising when a company is in financial difficulties 

How might a creditor take security over assets?

 

According to the Romanian law, a creditor may secure his receivable against a debtor by placing a mortgage, a pledge, or other legal security interests or retention rights/liens on the debtor’s goods/assets. By doing so, he becomes a secured (privileged) creditor.

In Romania the mortgage is defined as a real guarantee over mobile or fix goods/assets, whether tangible or non-tangible. Unlike the mortgage, the pledge involves the actual conveying of the good/asset to the creditor, therefore the pledge may only be placed over tangible assets. Similarly, a person who has the obligation to return or to remit a good/asset to a creditor, is entitled to retain such good/asset as long as the creditor does not perform at his turn his own obligations sourcing from the same legal relationship grounds/source or does not reimburse the necessary and useful expenses made in relation with that good/asset or the damages caused by that good/asset. 

 

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