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If you are planning to buy a property in Italy you may end up having to deal with security interests. Law of security interests differs significantly from jurisdiction to jurisdiction, especially when comparing common law to civil law jurisdictions. In the Italian jurisdiction, the most common type of security interest is the mortgage (called ipoteca). The mortgage in Italy has some peculiar features compared to the mortgage of the common law jurisdictions. The mortgage is a kind of security on a specific and determined property (collateral) that gives the creditor a right to preferential … [Read more...] about A guide to mortgages in Italy
Banking
Subrogation in Loan Agreements Under Italian Law
Subrogation in loan agreements (“surroga del mutuo” or “portabilità del mutuo”) is an innovation introduced in Italy by the Budget Law of 2008, known as “Legge Bersani” and consequently disciplined by art. 120-quater of legislative decree n. 385/1993 (Testo Unico Bancario – Consolidated Banking Act). It is a procedure, which allows to transfer a pre-existing loan agreement from a bank (banca surrogata) to another (banca surrogante) that offers better conditions or different parameters compared with the previous commitment, with no additional costs or charges and without requiring the original … [Read more...] about Subrogation in Loan Agreements Under Italian Law
International Cash Pooling
Cash Pooling is a cash management technique employed by financial institution, namely holding companies to concentrate – materially or virtually – their cash flows in a sole fund, to better manage the company’s economic resource. Cash pooling indeed allows companies to combine their credit and debit positions of different accounts into one and includes techniques like notional cash pooling and cash concentration. Notional cash pooling is the mechanism through which companies put together different balances in order to avoid low balance or transaction fees. It is a tool for calculating … [Read more...] about International Cash Pooling
Usury, Transparency of Bank Services and Compound Interest in Italy
Compound interest is one of the several financial customs, that have until recently been used in Italy in banks’ market. In the last years however, the bank system has evolved drastically. Hence, the Italian legislator, in the past, tended to leave too much freedom to contract to bank operators in setting up credit clauses and condition, allowing a general reference to custom – “rinvio ad usi su piazza” – in the definition of the terms of the agreements. In the absence of specific rules governing the matter, bank professionals were forced to operate in accordance with practices and … [Read more...] about Usury, Transparency of Bank Services and Compound Interest in Italy
