DOES SERBIAN LAW RECOGNIZE FLOATING CHARGE?

In this article, the author contemplates the floating charge, as a type of securities interest on a debtor’s property. It is a creation of English law, from where it has been expanded to other common law countries, but also to a number of continental legal systems, though in a limited scope. In English law, there is a floating charge as a general non-possessory lien, because it can charge the whole owner’s (chargor’s) property. This is opposite to the fixed charge (e.g. mortgage, pledge, lien), which is a security interest just on the specified parts of the chargor’s property (e.g. estate, movables or rights), because of the principle of specialty of the lien. The author explains the legal substance of the floating charge, pointing to its notion, reasons for its creation, key features, advantages and disadvantages, registration, crystallisation, rank among other securities interests and the methods of settlement of the creditor’s secured claim. There is a short presentation of the floating charge in comparative law, analysing whether the Serbian law recognises the floating charge. The conclusion is that Serbia accepted the system of partial floating charge, which is usually accepted in the continental systems of law. The author highlights the significance of the digital register of charges in contemporary fast business because it enables any person easy access to the inscribed particulars.