NORWAY Law and Practice Contributed by: Ida Marie Windrup, Daniel Jovanovic, Markus Nilssen and Steffen Rogstad, BAHR
Norwegian law generally supports the security agent model without significant limitations. Fronting bank arrangements are rarely necessary in Norway for security purposes, as the security agent structure is well established and legally robust. The Norwegian security agent framework is well devel - oped and aligned with international market standards, providing efficient administration of security for private credit transactions. 6. Enforcement 6.1 Enforcement of Collateral by Non-Bank Secured Lenders Generally, a distinction must be made between enforcement through the procedure set out in the Norwegian Enforcement Act and enforcement in accordance with the Norwegian Financial Collateral Act, implementing the Financial Collateral Arrange - ments Directive. At the outset, individual enforcement of security inter - est granted over an asset located in Norway will take place within the framework of the Enforcement Act, stipulating enforcement procedures for different asset classes. However, certain security interests may be enforced in accordance with the more flexible and quick procedures provided for by the Financial Col - lateral Act. Pursuant to the Financial Collateral Act, assets which are not subject to enforcement through the Enforcement Authority (eg, financial collateral and monetary claims) may be enforced by self-appropria - tion through the security agent subject to the enforce - ment procedures and conditions agreed between the parties in the security agreement, without the involve - ment of the Enforcement Officer. Such financial collat - eral includes, but is not limited to, bank deposits and financial instruments such as transferable securities (including shares and bonds). Enforcement will typi - cally be exercised by way of the security agent noti - fying the security provider of its intention to enforce, after which the security agent will be able, among oth - er things, to take possession of and exercise any and all ownership and creditor rights in connection with the assets as if it was the creditor thereof, or immedi -
ately sell or assign the claim or the assets (by public or private sale for consideration as is then agreed), or require a sale by the Enforcement Authority. Non-bank secured lenders have the same enforce - ment rights as bank lenders under Norwegian law, subject to compliance with the applicable enforce - ment procedures, but should ensure at an early stage that they fall within the scope of the Financial Col - lateral Act. 6.2 Foreign Law and Jurisdiction As a general rule, a Norwegian entity may enter into contracts governed by foreign law and subject itself to the jurisdictions of non-Norwegian courts. Nonethe - less, it is important to note that by selecting foreign law to govern a contract, the Norwegian entity will usually not be able to circumvent statutory provisions under Norwegian law. A choice of foreign law as the governing law of the contract, submission to a foreign jurisdiction, and a waiver of immunity will generally be upheld in Norway, subject to mandatory Norwegian law provisions. 6.3 Foreign Court Judgments A judgment given by a foreign court or an arbitral award against a Norwegian company may be enforce - able in Norway without a retrial of the merits of the case if certain conditions are met. Norway is a party to various international conventions on the recognition and enforcement of foreign judgments, including the Lugano Convention for EEA countries. 6.4 A Foreign Private Credit Lender’s Ability to Enforce Its Rights Non-bank secured lenders have the same enforce - ment rights as bank lenders under Norwegian law, subject to compliance with the applicable enforce - ment procedures, but should ensure at an early stage that they (and/or the relevant security agent or trustee) fall within the scope of the Financial Collateral Act as further detailed in 6.1 Enforcement of Collateral by Non-Bank Secured Lenders .
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