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The Framework Law established the Register of Pledges at the Ministry of Justice of BiH, with the purpose of registration and access to information on pledges. In order to regulate the operation of the Register of Pledges and issues related to the enforcement procedure, the Rulebook on Pledges of BiH was adopted pursuant to the Framework Law. From a legal point of view, the Register of Pledges underlines the principle of public access to pledge rights entered in the public register, including registration details, the subject of the pledge, pledger and pledgee, etc.
The Pledge Register, compared to the traditional state pledge, allows companies to use pledged assets for their business operations or to settle the liabilities secured by that pledge.
The Framework Law also regulates certain enforcement matters as a lex specialis in relation to entity enforcement laws, where any enforcement pursuant to the provisions of the Framework Law grants somewhat broader powers to the bailiff, who will in any case seize the pledged asset and, depending on the pledgee’s proposal, sell the pledged asset or hand it over to the pledgee for sale.
Electronic maintenance of the Register also allows third parties to conduct necessary checks quickly and conveniently, thus improving the general information function of the Register and allowing third parties to obtain the necessary information about pledges recorded in public registers.
If you need to register pledges or if you require additional information about registration, please contact our law office.
