Collaterals Generally Used and Accepted Under Romanian Law

Carmen Constantinescu, Head of Corporate Governance Department (Legal Division), MKB Romexterra Bank, Romania

Romanian banks usually grant loans to individuals as well as to companies that need funding for their business. Such loans need to be secured in order to protect the Bank’s interests towards the Debtor, as well as towards third parties. A commercial security is a written document/title enabling its lawful owner to exercise the right therein contained at a given date or in the event the debtor does not fulfil its obligations according to the loan agreement and/or the security agreement. Security Interest means right, title and interest of any kind whatsoever upon property created in favour of any secured creditor and includes any charge, mortgage etc. Under the Romanian law, there are two categories of securities:

MKB Romexterra Bank SA is a Romanian banking institution acting on the market since 1993. MKB Romexterra Bank SA provides professional banking services to individuals, as well as to legal entities - small, medium and large corporate.