Problems with Collateral Law in the Republic of Moldova: Educating the Economic Agents about the Concept of Collateral

Abstract

The paper provides a selective review of the emerging case law on various issues related to the interpretation and enforcement of the security agreements by the Moldovan courts: the form of security contracts, rights of the parties to a security agreement and the concept of collateral, priority rights over collateral in the insolvency proceedings and others. As the judicial practice in Moldova reflects the application of the existing legislation by the courts, we found that despite the imperfect legislative provisions, - which might sometimes prejudice interests of secured creditors, particularly in the insolvency proceedings - security agreements have usually adequately secured the claims of creditors and, more importantly, such contracts have been upheld by the judiciary.