The Hungarian Civil Code amendment, effective October 1, 2016, introduced the independent mortgage as a security mechanism. Unlike previous arrangements, this mortgage does not require enforcement dependent on the loan or other security relationships.

Independent Mortgage

The amendment replaces the unsuccessful separated mortgage with an independent mortgage, drawing inspiration from German Civil Code. Existing separated mortgages could be converted to independent mortgages through special proceedings upon mortgagor request.

Corporate Security Options

Corporations gained authority to establish call options, security assignments, and fiduciary securities for claim protection. However, these transactions remain prohibited between consumers or in corporate-to-consumer arrangements.

Debt Transfer Rules

The modification streamlined non-performing loans transactions by ensuring security interests remain unaffected when creditors change. Security provider approval is only necessary if the debtor changes.