CEU Electronic Theses and Dissertations, 2007
| Author | Hergottova, Anna |
|---|---|
| Title | Czech pledge of business: An assessment of an alternative business debt financing tool similar to the American floating lien |
| Summary | Legislation in the field of secured lending has significant impact on availability and terms of credit. There is a huge difference between the comprehensive legislation in the field of secured credit in the United States on one hand and the scattered norms related to the same topic (although unrecognized as a separate field of law) in the Czech Republic. In the United States, the positive impacts of credit on market economy have been realized more than half a century ago which lead to the enactment of the comprehensive Uniform Commercial Code “Secured Transactions” Article 9. Since the enactment of UCC Article 9, the United States asset-based financing has grown to a completely new level. On the other hand, there is shortage of credit and very little asset-based financing in the countries of Central and Eastern Europe. The Czech Republic is among the countries of the CEE region which has recently modernized its legislation in order to enhance credit opportunities in the business sector. The Czech pledge of business, enacted by the Act No. 317/2001 Coll., on Amendment to the Civil Code, is a positive development, but there are various conceptual deficiencies of the current legislation, especially when compared against UCC Article 9. The floating lien of is one of the key concepts of UCC Article 9 which enabled creation of a broad security interest in the mostly business debtor’s present and future property. Similarly to the floating lien, the Czech pledge of business has also been intended to enhance asset-based long-term business debt financing. However, the American floating lien is supported by the complex secured transactions solutions found in Article 9 making the floating lien a reliable and preferred type of business debt financing in the United States. Contrary to that, there are only a few scattered and conceptually weak provisions relating to the Czech pledge of business, which gives rise to specific concerns over its implementation and enforcement practice. |
| Supervisor | Tajti, Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2007/hergottova_anna.pdf |
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