Serbia, Draft Mortgage Law defined, innovations – mortgage on non-built facility, on part of facility, shortening of period for realization of mortgage

Government of Republic of Serbia defined the Draft Mortgage Law last week.

State secretary of the Ministry of International Economic Relations, Vlatko Sekulović, estimated that the Draft Mortgage Law would regulate that institute in different and more efficient way than the way used for several decades in our legal system.

One of the most significant innovations in this Law was that there was possibility of putting mortgage on non-built facility or part of real estate, he pointed out.

Sekulović mentioned that the deadlines for realization of mortgage would be shortened, i.e. extracourt application of mortgage is implied on the basis of document that founds this instrument and has the power of executive document. That means that it is not necessary to go to the court, but that the founding of mortgage itself implies possibility of settlement of debts with creditor.

Sekulović stated that the effect of that Law would be special investment boom in civil engineering because it would provide bigger security and safety to both those who finance building projects and users of credits.

source PRISTOP www.pristop.co.yu