Legal Practice

The role of lien holder in the judicial execution procedure

Published:
2015-12-05
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Selected Style: APA
Kovács-Hegedűs, V. (2015). The role of lien holder in the judicial execution procedure. Pro Futuro, 5(2), 139-158. https://doi.org/10.26521/Profuturo/2015/2/5391
Abstract

Lien is substantially characterized by priority in satisfaction, which is in the spotlight of the execution of the lien. The lien’s function and force as a security interest is determined by the rules of execution. Under Act V of 2013 on the Civil Code, out-of-court execution has become the main rule, however, judicial execution and liquidation proceedings remained available to enforce the lien. Furthermore, in order to protect the purpose of the pledge to serve as a collateral and to provide priority in satisfaction, the lien may also be enforced where the pledge has been seized and offered for sale in the execution proceedings initiated by a person other than the lien holder. In this case, the lien holder may join in the execution proceedings even if his/ her claim against the lienee as debtor is not yet due. otherwise, upon auctioning the pledge, the lien holder’s lien would terminate. The purpose of this study is to identify and address the issues of this specific type of execution that arise during implementation as well as the incompleteness of the applicable laws and regulations.