Entering a special bet electronically. Review of the changes in the Law on special bets after the reform 07/01/2023.

On 01.07.2023, the long-awaited transfer of the Central Register of Pledges („CRPL“) to the Registry Agency took place. As a result, the registration of special pledges can now be carried out entirely electronically. This article briefly discusses the new developments in relation to this change and how it affects the registration of stakes.

Central Register of Pledges.

The change in the law and the introduction of the possibility to register fully electronically is aimed at saving time in the submission and processing of applications for registration of special pledges, as well as ensuring greater accessibility and publicity of the already made registrations.

In the new legal and regulatory framework, as well as in the integration of the CRPL in the unified portal for requesting electronic administrative services to the Registry Agency, the way of functioning and the possibilities offered by the registry proceedings before the Commercial Register has been followed. This greatly facilities the applicants, who if they are traders are familiar with the way of Commercial Register works, and the persons who can be authorized to submit the application.

In this regard, an amendment to the Закона за особените залози in State Gazette No. 64 of 26.07.2023 provided for the possibility, similar to the entries in the Commercial Register, to request the entry electronically by a lawyer with an express power of attorney for representation before the Agency. The attorney’s power of attorney does not require notarisation.

In addition to the electronic recording of pledges, the advantage of making the register public is that it allows for inquiries to be made at any time about the pledges recorded in the pledgers’ accounts. Everyone has the right to free access to the database constituting the register. This enables a quick and detailed examination of the pledgor and the encumbrances on his property.

The digitalisation of the CRPL is of great importance for the business as it greatly facilitates the registration of special bets. This, in turn, enables businesses to obtain the financing they need in significantly shorter timeframes, while counting to use the assets the secure their liabilities.

Registration proceedings. Documents required.

The registration shall be made by means of an Application From CRPL-1 for registration of circumstances concerning a special pledge. It shall indicate:

• Pledgor Information;

• Information about the pledgee;

• Information on the debtor(s) of the secured claim;

• Information on the censured claim – basis, subject matter, interest and default penalties provided;

• Information on the pledged property, indicating its type and its full identification;

• The term and conditions of the pledge.

The application shall be accompanied by documents proving the circumstances to be registered – the contract for a special pledge, the pledgee’s written consent to the registration with notarial certification of his/her signature, the pledgee’s declaration of absence of tax liabilities under Art. 264 of the Tax Code, a declaration of the veracity of the declared circumstances, a lawyer’s power of attorney when the application is submitted by a lawyer, etc.

Освен изброените вече предимства на новата уредба, подобно на вписванията в Търговския регистър, при подаване на заявление за вписване на особен залог по електронен път се заплаща половината от таксата, която е дължима при подаване на заявление на хартия – 70 лева, вместо 140, което е с цел насърчаване на дигитализацията и използване на електронния регистър.

Applications shall be considered by the registrar in the order in which they are received. The registry official shall be obligated to rule on the application as soon as they have been examined or, in cases of irregularity, after instructions have been given to remedy them. Where any of the statutory requirements for the registration of the special pledge is not complied with, the official shall issue a reasoned refusal, which shall be delivered to the applicant immediately after its issuance. The refusal shall be subject to appeal before the district court of the applicant’s place of residence or registered office within 7 days of its service.

Notwithstanding all these advantages that the new regulation of registration in the CRPL provides, the procedure remains strictly formal. In order to carry it out quickly and successfully, it is necessary to be familiar with the specifics of the law, the specific entries to be made, the type of property pledged, and the documents required.

KGK Law Firm's team has been providing services in relation to the preparation of the necessary documents and the registration of special pledges since the transfer of the CDC to the Registry Agency. During this period, our lawyers have gained experience with the registration of liens on individual items and sets of machinery, on receivables, commercial enterprises, etc. If you need legal assistance in connection with such entries, you can contact us.

Electronic registration of a pledge. Overview of the changes in the Law on Special Bets after the reform 01.07.2023

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Central Register of Pledges.

Registration proceedings. Documents required.