ADMISSIBILITY OF INTERIM MEASURES IN CROATIAN LAW AND COURT PRACTICE

Abstract

Bank guarranty on first demnad (hereinafter: BG) in Croatian and comparative law is one of the most common security aimed at fast and efficient payment of amount in BG in the event that the other party does not perform its contractual obligation. If the bank issues a BG, the bank’s obligation to pay the amount from the BG is autonomus and it is not accessory. In other words, if the requirements from BG are met, the bank will not be able to raise objections against the beneficiary from the main business. The possibility of abuse of the right to collect amounts from BG raises the question to what extent one of the basic principles of BG “pay first, sue later” should be followed. Therefore, it is not surprising that, despite the mentioned theoretical conceptions of BG before the Croatian courts, there is a noticeable trend of increasing proposals for the issuing of interim measures regarding BG, and this has not been systematically discussed in the recent Croatian literature. Following the above, the authors question the admissibility of issuing interim measure, analyze the assumptions for issuing interim measures and give an assessment of the current situation, correlating the purpose and basic principles of the BG with the purpose and rules of the Enforcement Act on interim measures.