Professional paper

Pledge over concession on a maritime domain

Zoran Tasić ; CMS Reich-Rohrwig Hainz. Podružnica u Zagrebu, Zagreb, Hrvatska

Abstract

It is unlikely that banks will ever use the proposed form of security –a pledge over
concession rights. Pursuant to the Properties Act, any provisions of the pledge agreement
contrary to the principles of pledge, and particularly the provision pursuant to which
the pledged property shall, in the event of default, become the pledgee’s property, shall
be null and void. The Properties Act gives to the pledgee right to enforce its claim
through the court, or through out-of-court sale, and not through de-possession or use
of the pledged property.
Pursuant to Article 34 of the Maritime Domain and Seaports Act the concession
shall be withdrawn if the pledgee (such as bank) does not meet the conditions applicable
to the concessionaire and does not obtain the approval from the authorities. Thereby, it
seems, banks are excluded automatically from potentially becoming pledgees over the
concession rights.
As security banks will normally take assignment of the concessionaire’s rights and
benefits under the concession agreement and pledge of shares in the concessionaire. In
the event of default the bank will through out-of-court settlement transfer the shares
to a new investor in order to secure the performance of the concession and repayment
of debt.

Keywords

concession; concession agreement; pledge; pledgee; maritime domain; banks; enforcement; assignment

Hrčak ID:

41947

URI

https://hrcak.srce.hr/41947

Publication date:

30.8.2009.

Article data in other languages: croatian

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