Fiduciary transfer of property rights

Abstract

Fiduciary transfer of property rights for the purpose of loan security represents the non-possessory form of collateral, which experiences renaissance in the comparative law. It is a complex legal institute, which is subject to numerous concerns and can be viewed from different perspectives, due to the large number of its specific features - non typical for the Continental European legal systems. The paper discusses disputed issues related to defining the causa, as well as the legal grounds, for fiduciary transfer of property rights, its legal nature and the justification thereof. Aiming at more adequate understanding of this complex Property Law institute and finding satisfactory answers to some of the disputed issues the legal theory has opened, the author analyses provisions of current legislation in Montenegro, which was the first country in the Region to regulate this non-possessory form of collateral.

Keywords

• loan security
• non-possessory collateral
• fiduciary property
• principal
• fiduciary