Hungary: will securing syndicated loans be easier in Hungary?

From 15 March 2014, Hungarian law will recognise the concept of trust, and the problems with securing syndicated loans under Hungarian law seem to be solved.

If a syndicate of banks provides funds to the debtor, usually the security trustee, being a member of the syndicate, holds in trust the security interest(s) established over the assets of the debtor on behalf of the other syndicate members. So far, the implementation of this structure has been difficult under Hungarian law.

Security interests in Hungary are generally subject to a registration requirement (with limited exceptions). However, as Hungarian law does not recognise the concept of trust, the trustee cannot hold the security interest on behalf of other syndicate members, meaning that only registered lenders become secured. This, together with the accessory nature of security interests, led to the development of various solutions from the lawyers…

Click on the link below to read the rest of the Schoenherr briefing.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Schoenherr

View more briefings from Schoenherr

Analysis from The Lawyer

Overview

Schottenring 19
1010, Vienna
Austria
http://www.schoenherr.eu/

Turnover (€m): 66.60
Jurisdiction: Austria