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Secured Transactions Law
Croatia has an established system of mortgages on real property, in which the borrower re-tains the ownership, use and possession of the property. A system of registration in the Land Registry and the Cadastre has long been in use. While this system has significant technical problems and is in need of substantial improvement, it is built on sound legal principles, which can be replicated in the proposed system for registration of liens on movable property.
Croatia has a well-organized and detailed Property Law (Zakon o vlastništvu i drugim stvarnim pravima, adopted in 1996), which provides detailed regulations on various forms of mortgages and liens in Part 7 (Articles 297-353). The law allows the formation of different kind of liens, including non-possessory liens on movable property, and has adequate regulations for the establishment, registration and enforcement of various rights related to secured property. While the law does not specifically regulate non-possessory liens on movable property, they are also not specifically forbidden (as was the case in several other European jurisdictions prior to the adoption of specific legislation). In practice, such liens are created at present in Croatia with special notarized contracts between the parties, which are some-times subject to other legislation as well.
(Note: This information was taken from the Secured Transactions chapter of the 2000 Croatia BizCLIR report. For more information, please see the report.)
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