Austrian Supreme Court decides regarding the applicable law on security right in movable assets

What is it about?

Security interest in a movable asset may be created in country A. When the movable asset is transferred to country B, the applicable law changes. Due to differences of the law of country A and country B, the security interest may be terminated. The Austrian Supreme Court has decided that certain requirements (e.g. publicity) are not subject to a change of the law. Accordingly, the security interest continues to exist.

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Why is it important?

The approach adopted by the court could lead to a change in the movement of goods subject to security rights. However, several questions have not been answered by the court and still must be taken into consideration.