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Original scientific paper

https://doi.org/10.31141/zrpfs.2022.59.144.269

Debenture as a means of insurance in commercial contracts: yesterday, today, tomorrow

Lidija Šimunović ; University of Osijek, Faculty of Law, Osijek, Croatia
Martin Radiček ; University of Osijek, Faculty of Law, Osijek, Croatia


Full text: croatian pdf 304 Kb

page 269-293

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Abstract

The debenture has been present in the Croatian legal system for 25 years and since its
implementation in 1996 (although under a different name, but with all the characteristics of that
institute) until today, the debenture has undergone a number of changes. Some changes should
be welcomed and some should be amended as soon as possible. Although the debenture quickly
became one of the most common means of payment insurance in commercial contracts due to its
simple and easy collection, frequent but inadequate changes of the Enforcement Act in regards
to the debenture left this institute underregulated with a high risk of potential abuse. Originally
well-conceived, debenture has undergone through (r) evolution and hyperproduction of regulations
that are difficult to follow even for jurists who deal exclusively with the subject matter, so it is
not surprising to see that entrepreneurs are often unaware of risks that may occur while using the
debenture. This paper aims to systematically explain and analyze the institute of debenture in the
Croatian legal system from its implementation to present day and to assess the current situation with
guidelines de lege ferenda. After theoretical definition of the term and presentation of historical
development, the paper gives an analysis of the debenture de lege lata. Some controversial issues
from the application of debenture are also mentioned, and the answers offered by jurisprudence and
case law in the context of complex relations in commercial contracts are pointed out.

Keywords

debenture; blank debenture; commercial contracts; enforcement order; writ of execution; registry of debentures

Hrčak ID:

280634

URI

https://hrcak.srce.hr/280634

Publication date:

15.7.2022.

Article data in other languages: croatian

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