New Legislation Regulates Participants in Banking Sector

This article was first published on the International Law Office

Act 510/2002 on Payment Systems took effect on January 1 2003. It is the first domestic law to regulate payment transactions and was drafted to ensure compliance with EU law.

The law introduces some rules that are exceptions to general legal principles.

If the courts declare an individual to be bankrupt, only the bankruptcy trustee can carry out valid acts on the individual's behalf. However, the funds deposited in the individual's bank account may be used (i) to settle his or her liabilities, or (ii) by the bank in processing and settling instructions that were received prior to or on the day of the declaration of bankruptcy, provided that the fact was unknown to the bank and the parties in question.