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
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
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
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.
News from Schoenherr
Briefings from Schoenherr
The problem in implementing the third pillar of the convention in Austria is that the EU has not yet issued a directive.
A trader must clearly inform consumers in advance about all costs associated with a contract, and other requirements.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work