Fiducia, A Novelty Under Recent Romanian Legislation

This article was originally published in the schoenherr roadmap`10 - if you would like to receive a complimentary copy of this publication, please visit: http://www.schoenherr.eu/roadmap.

If timely assimilated by the business community and followed by detailed provisions, in particular on its fiscal and insolvency treatment, the newly regulated fiducia creates an opportunity of new business for certain actors and may lead to a more flexible structuring of secured finance-banking transactions.

On 17 July 2009 an important piece of new legislation was passed in Romania: the new Civil Code¹. It aims to forge into one corpus (i) the principles set out in the old Civil Code and the Commercial Code (to the extent they reflect modern societal needs), (ii) various regulations that have been enacted in those fields throughout the past 140 years and (iii) additional new concepts (e.g. imported from continental statutes or the common law tradition).