SERBIA Law and Practice Contributed by: Uroš Popović and Stefan Golubović, Drašković Popović & Partners
3.2.5 Assignment of Rights and Benefits Without Attendant Obligations It is possible to assign the rights and benefits only without also assigning the attendant obligations of the lessor under an aircraft lease under Serbian law. 3.2.6 Choice of Foreign Law A security assignment or a guarantee may be gov - erned by English or New York law under Serbian law. 3.2.7 Formalities/Mandatory Terms to Create and Perfect Security Assignments As securities present ancillary obligations in relation to the main contract, they can be assigned to the oth - er party solely through the assignment of the entire agreement that they provide security for. If the security is registered with the Aircraft Register in Serbia, the Aircraft Register should be notified of the assignment. If the Aircraft Register is notified of the assignment, a translation of the assignment agreement will be man - datory. 3.2.8 Domestic Law Security Instruments If an English or New York law-governed security assignment is taken in respect of an aircraft registered domestically it will be advisable that the security is transferred to the domestic Aircraft Register. 3.2.9 Domestic Registration of Security Assignments Governed by Foreign Laws There is no Serbian regulation that explicitly prohibits an aircraft, used in Serbia, from being encumbered by a security established in the foreign country in line with the foreign law. The security on an aircraft that is registered in a foreign country can be “transferred” to the domestic Aircraft Register by registering the aircraft itself. 3.2.10 Transfer of Security Interests Over Aircraft/ Engines The transfer of security interests is generally recog - nised under Serbian law. 3.2.11 Effect of Changes in the Identity of Secured Parties If there are any changes in the identity of the secured parties the change should be reflected in the contrac - tual documentation.
3.2.12 “Parallel Debt” Structures “Parallel debt” structures are not recognised under Serbian law. 3.2.13 Effect of Security Assignments on Residence of Secured Parties A secured party under a security assignment will not be considered to be resident, domiciled, carrying on business or subject to any taxes as a result of its being a party to, or its enforcement of, the security assign - ment. 3.2.14 Perfection of Domestic Law Mortgages A domestic law mortgage over an aircraft is perfected by registering it with the Aircraft Register. 3.2.15 Differences Between Security Over Aircraft and Spare Engines Security taken over the spare engines is perfected through registration in the Pledge Register held by the Business Registers Agency. 3.2.16 Form and Perfection of Security Over Bank Accounts Security of the pledge over bank accounts is perfect - ed through registration in the Pledge Register which is held by the Business Registers Agency. 3.3 Liens 3.3.1 Third-Party Liens A third-party lien in relation to unpaid airport fees, nav - igation charges, customs duties, etc is not registered. In the case of repairers’ costs and similar liens, the creditor will be, under very limited conditions, entitled to the right of retention of the aircraft until the debt owed is settled. A fleet lien is not envisaged under Serbian law. The right of retention is a statutory right and no spe - cific legal action is required in that regard. 3.3.2 Timeframe to Discharge a Lien or Mortgage The discharge of a lien or mortgage can be made within a day.
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