Права и задължения на страните при обезпечителния договор за залог с право на ползване
Security financial col lateral arrangement rights and obligations

Summary/Abstract: This article discusses specific security financial collateral arrangement rights and obligations. The Security Financial Collateral Air angement was adopted in Bulgarian legislation with the Financial Collateral Arrangements Act (FCAA), promulgated in SG No. 68 of 22.08.2006. The act implements the 2002/47/EC Directive. The creditor/collateral taker has a specific "right of use". This is their right to use and dispose, as the owner, of the financial collateral provided under a security financial collateral arrangement in accordance with the terms of the security financial collateral arrangement. Right of use has been around ever since security was guaranteed through the entire security period. It expires with the fulfillment of the relevant financial obligation or becomes invalid in case of an enforcement event. Right of use differs from ownership as defined in point 3, Para. I, FCCA Supplementary Provision. In case of title transfer of the financial collateral arrangement collateral taker establishes right of ownership. In case of financial collateral arrangement this right is granted, when the collateral taker exercises their "right of use". The right is equivalent to collateral taker's obligation. They have the obligation to transfer the equivalent collateral so as to replace the original financial collateral no later than the date due for the performance of relevant financial obligations covered by the security financial collateral arrangement. In case of default the financial collateral may be appropriated or set-off by collateral taker.

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