The Amendments To The Law On Financial Collateral

Original Language Title: Grozījumi Finanšu nodrošinājuma likumā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/228659

The Saeima has adopted and the President promulgated the following laws: the law of financial security to make financial security Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 2005, no. 11) as follows: 1. Article 1: expressions of paragraph 1 by the following: "1) financial security — financial resources, financial instruments or credit claims that, on the basis of a financial collateral arrangement, used as collateral for financial obligations;"
Express points 3 and 4 by the following: "3) financial security with ownership transition, (the financial instruments purchase agreement with reverse repurchase or atpakaļpārdevum conditions), or other transaction, the Act by which the collateral is property rights or claims on financial security over the collateral taker of the relevant financial obligations to ensure compliance;
4 financial pledge agreement), or other transaction, the Act by which the collateral provider pledged the collateral taker financial security (financial pledge), preserving the property rights or claims on financial security; "
Add to paragraph 6, after the words "financial instruments" with the words "receipt, or to take credit";
express the following paragraph 13: "13) the provision of financial collateral — all the necessary legal steps (also an assignment or pledge of credit, financial resources or transfer of financial instruments, recording, holding or blocking the account), which guarantees the right of claim to the provision of the financial collateral passes to the worker or the financial collateral from financial collateral or in the possession of the trustee";
Add to article 16 as follows: "16) credit claims — claims arising from the contract or other transaction Act, under which the credit institution or Credit Union issued the loan."
2. in article 4: to complement the first paragraph after the word "communication" with the word "borrower";
make the second paragraph as follows: "(2) subject to the provisions of the first subparagraph, the provisions of this law apply only to financial support, the provision of which can assure: 1) with the financial support of the worker submitted a list of credit and providing proof which allow precise identification of each provision of the financial collateral, the amount of the provision of the financial collateral, as well as is possible to attest to the fact that the conclusion of financial collateral arrangements, on the basis of which financial security;
2) with the financial instrument or financial resources of entries (postings) in an account opened at a financial collateral taker or governors, and providing proof which allows you to accurately identify its delivery time as well as is possible to attest to the fact that the conclusion of financial collateral arrangements, on the basis that the financial collateral provided. ";
express the sixth part as follows: "(6) in addition to the financial collateral arrangement only for the conclusion of financial collateral the validity rule is: 1) if financial collateral is in the credit, the credit supporting documents, including the credit security document, the transfer of the collateral taker or its trustee, while not denying the collateral rights originally given financial guarantees to replace with an equivalent or rights to the surplus of financial collateral;
2) if financial collateral is a financial asset or a financial instrument, to transfer this security — of the collateral taker or the possession of the trustee, the collateral taker or its trustee that security there, register or otherwise to the Board, while not denying the collateral rights originally given financial guarantees to replace with an equivalent or rights to the surplus of financial collateral. ";
to supplement the article with the seventh and eighth by the following: "(7) pledging credit and subject to the proof specified in the third paragraph of form: 1) a borrower who is not a consumer of the consumer protection law, has the right to relinquish their rights to the lender off and people with lenders could cede to pledge or otherwise use the credit claim as collateral;
2) borrower shall have the right to agree that the collateral taker is disclosed details of the client, in accordance with the law of credit institutions of certain confidential.
(8) credit claims cannot be simultaneously for financial security more financial security for workers. "
3. Add to article 5 of the fourth subparagraph by the following: "(4) the financial guarantor is entitled to replace the financial collateral with other financial collateral of substantially the same, get the excess or the financial collateral in the case of credit claims, receiving payments from credit claims. This right shall not affect the legal relations arising from a financial collateral arrangement. "
4. in article 6: put the name of the article as follows: "the right to use the financial pledge";
Supplement to the eighth article as follows: "(8) If financial collateral is a pledge of collateral, financial worker financial pledge for the duration of the contract shall not be entitled to use the financial pledge."
5. in article 7: Add to the first part of paragraph 3 with the following: "3) if financial collateral is transferred to its credit — in whole or in part to a third party or for the good of themselves and on the amount received to reduce the financial commitment or completely delete these commitments."
to complement the second paragraph after the words "agreed on financial instruments" with the words "or" credit claims.
6. Add to article 11 with the third subparagraph by the following: "(3) in relation to consumer consumer protection law within the meaning of this law, included in the lending rules of law applicable in so far as they are not inconsistent with the provisions of law governing consumer lending."
7. Make the informative reference to European Union directives as follows: "Informative reference to European Union directives, the law includes provisions resulting from: 1) of the European Parliament and of the Council of 6 June 2002 Directive 2002/47/EC on financial collateral arrangements;
2) of the European Parliament and of the Council of 20 March 2000 Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions;
3) of the European Parliament and of the Council of 6 May 2009 directive 2009/44/EC, amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims. "
The law takes effect July 1, 2011.
The law adopted by the Parliament in the March 31, 2011.
The President of the Parliament instead of the President s. Āboltiņ in Riga 2011 April 14.