In the June issue of a specialist magazine entitled: "Wirtschaft und Recht in Osteuropa" (Economy and Law in Eastern Europe) the first part part of the article called: " Registered Pledge on an Enterprise in Polish Law" ("Das Registerpfandrecht an Unternehmen im polnischen Recht") was published, cowritten by attorney-at-law Katarzyna Domańska-Mołdawa PhD, Partner at BSJP.
"Legal structure of the registered pledge has made it possible for a thing encumbered by a pledge to remain in possession of the debtor, therefore overcoming a significant weakness of the ordinary pledge. By entering the pledge in the pledge register, the requirements of transparency and security of the turnover are met and it is possible for the debtor to continue to use the pledge internally within the enterprise. Consequently, many of the assets of the enterprise, or even the enterprise as a whole, may be used as loan collateral.
Such a structure of loan collateral on moveable things and rights has been adopted in all countries of Central and Eastern Europe and constitutes, next to mortgage, the most important loan collateral for business financing (...)".
The article in question not only demonstrates the history of a register pledge in Poland but also provides a detailed description of its modern form. In addition, the authors have analysed i.a. establishing, transferring, expiration of the registered pledge and its subject matter. The article also points out differences of the registered pledge in relation to the ordinary pledge. Further part of the article is focused mainly on the notion of an enterprise and its part, as a specific subject of the registered pledge. Additionally, the article provides answers to the following questions:
- How should "a set of movable things or rights that constitutes an economic unit, even if the constituent elements change" referred to in Article 7 section 2 item 3 of the Act on Registered Pledges and Register of Pledge be understood?
- How do the doctrine and case-law refer to the notion of an "economic unit"?
- What is an enterprise and is it permissible to pledge enterprises?
- How can a registered pledge be effectively established on an enterprise or on a part thereof?
- How is the encumbered property monetised and can the secured claims be satisfied by way of enforcement proceedings?
- What are other methods of enforcing a pledgee's claims besides court enforcement proceedings provided for in the Act on Registered Pledges and Register of Pledge?