Viehweg's Topics, Article 9 UCC, the 'kautelarische Sicherheiten' and the Hungarian Secured Transactions Law Reform

TitleViehweg's Topics, Article 9 UCC, the 'kautelarische Sicherheiten' and the Hungarian Secured Transactions Law Reform
Publication TypeJournal Article
AuthorsTajti, T.
Journal titleVindobona Journal of International Commercial Law and Arbitration
Pages95 - 131

It goes without saying that secured transactions law is one of those emerging and growing legal disciplines which has attracted the most attention during the 1990s on all levels. Despite some encouraging developments and first steps taken in introducing new secured transactions laws, all the transitory economies of most Central and Eastern European countries seem to suffer fromt he same malaise in this context. In a nutshell: system-oriented thinking and the inherent deference to "traditional legal principles" of civil law tend to stymie the creation of a high-quality legal framework inevitable for the gradual formation of credit economy. A credit economy, without which no market economy can exist, and without which hardly could such burning problems, as housing or the revival of the economy, be solved. In sum, "traditional legal rules", be they enshrined into civil codes, or just hovering somewhere in the vacuum, are not the tools for bringing about a credit economy. In order to effect the necessary changes, problem-oriented thinking should come to the forefront, to which the acceptability of even the tiniest technical details of a new law would not depend on whether the new solution could be brought under the penumbras of any of the "traditional legal principles", but rather whether innovation could in practice improve the conditions for extending credits. And eventually, to what extent can any one solution help solving the main policy aim, which I will refer to in a somewhat shorthand way as the creation of credit economy.

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