Slovak Financial Law News 2005

Rights in rem to the Assets in Case of their Transfer against Consideration

The trustee is not bound by contractual pre-emptive rights during the encashment of the assets belonging to the bankrupt's estate. In case of the encashment of assets to which the statutory pre-emptive right or a pre-emptive right established as a right in rem pertains, the trustee shall offer in writing the subject of the pre-emptive right under the conditions stipulated by special regulations to such person that is entitled to the pre-emptive right; unless a special regulation stipulates a shorter period, the trustee shall not be bound by this pre-emptive right, if the entitled person fails to exercise this right within 60 days following delivery of a written offer.

Under the new Act, if the assets forming a separate estate are to be encashed, all liens which follow the priority lien in the order that is decisive for their satisfaction, including the priority lien, shall be dissolved upon encashment of the assets.

The Act expressly stipulates that the buyer will acquire an ownership right in the case of transfer of an item recorded in the list of assets against consideration also if the bankrupt was not the owner of this item. The trustee is liable towards the original owner of the item for damage incurred to this owner, unless he/she proves that he/she acted with professional care.