Secured Transactions: New Possibilities

Law on Encumbrance of Movables, dated 2 May 2017, came into effect on 28 May 2017. According to it, creditors (obligees) are given tools for prioritising their claims in movables by making encumbrances public. To place claims into the public domain, creditors can record them in the encumbrances' register, have them into possession, acquire control of the encumbered items (such as moneys in bank accounts), and, also, use a combination of those options.

The Law deals with contractual and non-contractual (e.g., seizure by court order) encumbrances on a "first- come, first-served" basis save for some exceptions. The ranking of contractual encumbrances may be altered by the security holders' agreement though.