Enterprise mortgage is a new form of commercial charge applicable in the law of Lithuania since 1 July 2012. An enterprise mortgage as set out in the national law is distinct by its object, i.e. that an enterprise mortgage allows charging an enterprise as a whole, as an immovable property item; by the debtor’s (grantor’s) right to use the mortgaged assets in the ordinary course of business by transferring them to third persons free from encumbrance; also by the opportunity for the enterprise mortgagee to enfroce his rights by special method of enforcement: the enterprise purchase and sale. As a result of its wide scope, embracing both the existing and future assets of the debtor, as well as due to the absolute priority granted to the mortgagee to get all proceeds from the sale of the charged property, enterprise mortgage affects not only the debtor but also other creditors of the debtor (grantor). The method of minimum regulation for enterprise mortgage chosen in the law leaves a number of open questions for practical and doctrinal development. The article presents an analysis of the content of object of enterprise mortgage, explores the impact of enterprise mortgage on the satisfaction of claims of other creditors of the debtor (grantor) both in enforcement and insolvency proceedings, the rationale behind absolute priority of the enterprise mortgagee, effectiveness of the enterprise purchase, and sale as a method of enforcement of enterprise mortgagee’s rights. The article also analyses the relevance and adequacy of the existing legal regulation.
1. Ali, Paul A. U. The Law of Secured Finance. Oxford, 2002.
2. Armour, John. “The Law and Economics Debate About Secured Lending: Lessons for European Law Making”: 3–30. In: Horst Eidenmüller and Eva-Maria Kieninger, eds. The Future of Secured Credit in Europe. European Company And Financial Law Review – Special Volume. Berlin: De Gruyter Recht, 2012.
3. Baranauskas, Egidijus. Įkeitimo teisinis reguliavimas: daktaro disertacija (Legal Regulation of Mortgage: Doctoral Dissertation). Social Sciences, Law (01S). Vilnius: Law University of Lithuania, 2002 [in Lithuanian].
5. Beale, Hugh, Michael Bridge, et al. The Law of Security and Title-based Financing. 2nd edition. Oxford: Oxford University Press, 2012.
6. Belov, Viktor A. Imushchestvennye kompleksy (Fund of Assets). Moskva: АО Centr Jurinfor, 2004 [in Russian].
7. Bitė, Virginijus. Uždarosios bendrovės akcijų pardavimas, kaip verslo perleidimo būdas: daktaro disertacija (Sale of Shares of Private Limited Liability Company as a Means of Business Transfer: Doctoral Dissertation). Social Sciences, Law (01S). Vilnius: Mykolo Riomerio universitetas, 2009 [in Lithuanian].
8. Dalhuisen, Jan H. Dalhuisen on International Commercial, Financial and Trade Law. Oxford and Portland: Oregon, 2004.
9. Eidenmüller, Horst, and Eva-Maria Kieninger, eds. The Future of Secured Credit in Europe. European Company And Financial Law Review – Special Volume. Berlin: De Gruyter Recht, 2012.
10. Erp, Sjef V., and Bram Akkermans. Cases, Materials and Text on Property Law. Oxford and Portland: Oregon, 2012.
15. Gullifer, Louise, and Jenifer Payne. Corporate Finance Law. Principles and Policy. 2nd edition. Oxford/Oregon: Hart Publishing, 2015.
16. Jakutytė-Sungailienė, Asta. Įmonė kaip civilinių teisių objektas: daktaro disertacija (Enterprise as an Object of Civil Rights: Doctoral Dissertation). Social Sciences, Law (01S). Vilnius: Mykolas Romeris University, 2010 [in Lithuanian].
17. Kieninger, Eva-Maria, ed. Security Rights in Movable Property in European Private Law. Cambridge: University Press, 2004.
18. Kiršienė, Julija, and Kristupas Kerutis. “Verslo perleidimas akcijų ar įmonės pardavimo būdu: teisinio reglamentavimo ir praktikos lyginamoji analizė” (Methods of Business Transfer: the Sale of Shares or a Company: a Comparative Analysis of Legal Regulation and Practice). Jurisprudencija 3 (81) (2006): 24–31 [in Lithuanian].
19. Mizaras, Vytautas, ed. Civilinė teisė. Bendroji dalis (Civil Law. General Part). Vilnius: Justitia, 2009 [in Lithuanian].
20. Mokal, Riz. “The Floating Charge – An Elegy”: 479–513. In: Sarah Worthington, ed. Commercial law and commercial practice. Oxford: Hart Publishing, 2003.
21. Smaliukas, Andrius. Kilnojamojo turto įkeitimo teisės reforma ir derinimas: lyginamoji analizė: daktaro disertacija (Reform and harmonization of law of security over movable property: comparative study: Doctoral Dissertation). Social Sciences, Law (01S). Vilnius: Vilnius University, 2002 [in Lithuanian].
22. Smaliukas, Andrius, et al. LR civilinio kodekso komentaras. Ketvirtoji knyga. Daiktinė teisė. Hipoteka (Commentary to the Civil Code of the Republic of Lithuania. Book Four. Property Law. Mortgage). Vilnius: Justitia, 2013 [in Lithuanian].
25. Walsh, Catherine. “Super priority for Asset Acquisition Financing in Secured Transaction law: Formalism or Functionalism”: 457–477. In: Sarah Worthigton, ed. Commercial Law & Commercial Practice. Ch. 16. Oxford: Hart, 2003.
26. Wellard, Mark N., and Peter Walton. “A Comparative analysis of Anglo-Australian pre-packs: can the means be made to justify the ends?” International Insolvency Review 12 (2012): 143-181 // DOI: 10.1002/iir.1201.
27. Wood, Philip. R. Comparative Law of Security Interests and Title Finance. London: Sweet and Maxwell, 2007.
1. Civil Code of the Republic of Lithuania. Official Gazette, 2000, no. 74-2262.
2. Civil Code of the Russian Federation. Official Gazette, No. 51-ФЗ, 30.11.1994.
7. Explanatory Letter to the Law Amending Enterprise Bankruptcy Law No. IX-216 of the Republic of Lithuania, the Law Amending Article 6.410 of Civil Code of the Republic of Lithuania, the Law Amending Articles 20 and 24 of the Law on Companies No. VIII-1835 of the Republic of Lithuania and Supplementing the Law with Article 231 and the Law Amending Article 120 of the Code of Administrative Offences of the Republic of Lithuania // https://eseimas.lrs.lt/portal/legalAct/lt/TAP/3ef92a20af9611e59010bea026bdb259?pos itionInSearchResults=59&searchModelUUID=1649f0c7-2d6b-4040-bc7b-29ce43408f13.
8. Federal Law on Hypothec (Charge of Immovables) of Russian Federation. Official Gazette, No. 102-ФЗ, 16.07.1998.
9. Law on Amending and Supplementing Articles 4.127, 4.170, 4.171, 4.172, 4.173, 4.174, 4.175, 4.176, 4.177, 4.178, 4.179, 4.180, 4.181, 4.182, 4.183, 4.184, 4.185, 4.186, 4.187, 4.188, 4.189, 4.190, 4.191, 4.192, 4.193, 4.195, 4.196, 4.197, 4.198, 4.199, 4.200, 4.201, 4.202, 4.204, 4.206, 4.207, 4.209, 4.210, 4.211, 4.212, 4.213, 4.214, 4.216, 4.219, 4.220, 4.221, 4.223, 4.224, 4.225, 4.226, 4.256 of the Civil Code of the Republic of Lithuania and Supplementing the Code with Articles 4.192-1, 4.194-1 of Code. Official Gazette, 2012, no. 6-178.
10. Law on Enterprise Bankruptcy of the Republic of Lithuania. Official Gazette, 2001, no. 31-1010.
SCImago Journal Rank (SJR) 2017: 0.119 Source Normalized Impact per Paper (SNIP) 2017: 0.113
researchers and scholars in the fields of law and politics, with an acute interest in the cross-pollinations of disciplines, comparative approaches to regional issues, and active dialogue on pressing contemporary issues of theoretical and practical import.