Home Law Implementing the Cape Town Convention and the Domestic Laws on Secured Transactions
Requirement of Economic Analysis
It might be argued that the general requirement of pursuing an economic analysis of every legal regulation can be derived from the Preamble of the Polish Republic Constitution according to which public institutions ought to proceed effectively and reliably. Specific requirements as to the assessment of the economic effects flow from the rules on the legislative technique. Accordingly, a research as to social, economic, organizational, legal and financial effects should be pursue before commencing works over any act, including the law of secured transactions, or generally private law (§1 of the annex to the Decree on Rules of Legislative Technique). Moreover, the Statute of the Sejm (lower house of the Polish Parliament) requires that each proposal of an act has to be accompanied by a justification including foreseeable social, legal, financial as well as economic consequences (art. 34 of the Polish Republic Sejm Statute). For the proposals coming from the Polish Government an in-depth study of the economic effects is necessary. According to the Statute on the Council of Ministers’ Work an Impact Assessment of Legislation is an integral part of a justification preceding a proposal. The Legislation Impact Assessment shall include primarily an analysis of the act’s influence on: entities affected by the proposed act, the State’s budget as well as the budgets of the local governments’ units, labor market, competitiveness of the economy, including the functioning of enterprises (§ 28 of the Statute on Council of Ministers’ Work). Indispensable elements of the impact assessment are results of consultations with the interested partners. Since majority of act proposals is of the governmental origin, they are accompanied by the Impact Assessment of an empirical nature. Formal requirement of the Legislative Impact Assessment does not concern, however, proposals coming outside of the government, from the Sejm deputies, the President of the Republic, the Senat or introduced by way of popular initiative.
Advantages of Effective Security System
The idea which assumes that stronger security interest is beneficial for both, a creditor and a debtor is generally supported in the Polish jurisdiction. The more confident is the creditor, the more eager is he to give a loan/credit. Effective security system influences both, the availability and costs of borrowing. An example of provisions aiming at strengthening the position of a creditor are those providing the creditor secured by a registered pledge with the alternative remedies as taking ownership of an object or its sale by tender. Such a solution is also adopted in the case of the mortgage instituted on the registered vessels.
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