FINLAND Law and Practice Contributed by: Tarja Wist, Wist Attorneys
10. Jurisdiction-Specific Features 10.1 Other Acquisition Finance Issues Under Finnish law, a negative pledge undertak- ing has traditionally been regarded as a contrac- tual undertaking, with only limited enforceability against third parties. For real estate, however, a recent change of law made it possible to register a negative pledge undertaking in the Title and Mortgage Register of the Land Register in circumstances where the negative pledge undertaking is given by a busi- ness enterprise in connection with a specified finance transaction. Once so registered, a nega- tive pledge undertaking will prevent the regis- tration of any new mortgages against the same real estate and thus be effective in relation to the owner of the real estate and any third-party creditors.
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