Asset Finance, Austria updates

Bone Fide Acquisition of Title
  • Austria
  • 21 June 2000

The Supreme Court has ruled that once full ownership rights have been acquired in good faith, the innocent purchaser may transfer these ownership rights to any other person. The latter will acquire full unencumbered title, even if it knows that the original title was defective.

Limitation Period for Recovering Warranty Guarantee Sums
  • Austria
  • 21 June 2000

A new Supreme Court ruling has ended the controversial discussion on whether the limitation period for recovery of a warranty guarantee sum is three years or 30 years. It provides that the 30-year period shall apply.

Claims of Beneficiary in the Bankrupcty of Trustee
  • Austria
  • 09 September 1999

Validity of Upstream Security
  • Austria
  • 09 September 1999

Any payments to shareholders other than dividends are forbidden and void, as they constitute repayment of share capital. The Supreme Court recently stated that a company may use the defence that such a transaction is equally unenforceable against most creditors who have been granted security rights.

United We Stand?
  • Austria
  • 09 September 1999

In a recent case a firm appointed a trustee to act on behalf of a group of convertible bond holders when the company ran into economic difficulties. However, individual bondholders filed separate appeals against the actions of the trustee, who was acting for the common good of the group.

Unlimited Mortgages
  • Austria
  • 09 September 1999

The Supreme Court now allows the registration of mortgages for a maximum amount to be used as security for all claims, not only those which are defined in the Land Register Act.

Stamping Out Tax Evasion
  • Austria
  • 09 September 1999

A recent amendment to the Stamp Duties Act will eliminate the possibility of avoiding stamp duty by executing a contract outside Austria which concerns Austrian assets.

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