Collaterals Generally Used and Accepted Under Romanian Law

December 2010

Abstract

Romanian banks usually grant loans to individuals as well as to companies that need funding for their business. Such loans need to be secured in order to protect the Bank’s interests towards the Debtor, as well as towards third parties. A commercial security is a written document/title enabling its lawful owner to exercise the right therein contained at a given date or in the event the debtor does not fulfil its obligations according to the loan agreement and/or the security agreement. Security Interest means right, title and interest of any kind whatsoever upon property created in favour of any secured creditor and includes any charge, mortgage etc. Under the Romanian law, there are two categories of securities:

Author

Carmen Banateanu

Senior Associate, Radulescu & Musoi SPARL, Romania

During my practice, I was advising banks and other financial institutions as well as unregulated entities in all areas of financial services regulation. I have been working across product areas for private equity houses, international banks and large corporations and take a proactive and flexible approach to the business issues faced by her clients. I worked on a broad range of national and international structured finance transactions, particularly on real estate transactions, advising both corporations and major financial institutions. Over the years, I have developed a strong understanding of certain key sectors, in particular information technology and telecommunications, media, as well as outsourcing projects. I can also deal with highly sensitive employment issues and advising a broad range of companies and multinational companies with a focus on the services industry, media, general industries and the consumer and healthcare sectors. I lead the legal team involved in the acquisition of one of the largest private company groups on the Romanian market. Recently, I coordinated a restructuring and debt-recovery project in relation to the non-performing portfolio of a bank.

Company

Radulescu & Musoi SPARL

At RCM we believe that hurdles are not meant to stop you from succeeding, but to allow you to grow and reach your full potential. We are here to support you at every step of the way and to handle the challenges facing your business with care and professionalism. We are a team of talented and experienced lawyers who worked for many years in top domestic and international law firms and who decided to set up their own practice.

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