Securing Of Syndicated Financings In Poland (Part Three)

Originally published in IFLR/June 2012

In previous IFLR issues, this series of bulletins has covered parallel debt and pledge administrator as concepts allowing to secure a multi-facility syndicated structure with Polish lawgoverned security interests. As previously noted, the pledge administrator is available in relation to registered pledges, which may be established over rights and property other than real property. It is, therefore, time to see whether a relevant concept is available in respect of the only security interest that may be established over real property – a mortgage.

As of February 2011, the answer to the question has become positive. Amendments to the Act of July 6 1982 on the land and mortgage registry books and mortgage have brought revolution to the regime by permitting to secure with a single mortgage: more than one claim of an individual creditor; and several claims of several creditors.