The amendments to the law on financial leasing („Official Gazette of the RS“ no. 31/2011)

Published:
05/05/2011
Published in:
Newsletter

On May 5, 2011, the National Assembly of the Republic of Serbia on the Third Sitting of the First Regular Session in 2011, adopted the Amendments to the Law on Financial Leasing („Official Gazette of the RS“ no. 31/2011, hereinafter the „Amendments to the Law“) which came into force on May 17, 2011.

The most important changes in the Amendments to the Law are the modifications of the financial leasing transaction definition, extension of subject of the financial leasing to real estate, derogation of the minimal time period for conclusion of a lease, increase of the minimal amount of lessor’s capital, adjustment of lessor’s business to the rules of business of other persons in financial sector, extension of surveilance of the National Bank of Serbia (hereinafter the „NBS“) and changes in bankruptcy and liquidation proceedings on lessors.

Lessors are obliged to harmonize their businesses with provisions of the Amendments to the Law within a year from the day of coming into force, which implies the obligation to pay the lacking amount of share capital, harmonization of Memorandum of Association, foundation of new bodies and acquisition of approval of the NBS for appointment of the members of Executive Board and Board of Directors. The consequence of non compliance with the Amendments to the Law in due period is revocation of lessor’s licence to engage in financial leasing.

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