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ABOUT SUB-PLEDGE (OVER MORTGAGE)
Balázs BODZÁSI
The sub-pledge (over mortgage) is one of the most complex institution of the Hungarian civil law. Its prelude could be found in our private law before the adoption of the 1959
Hungarian Civil Code. After the new Civil Code came into force in 2013, the development of the mortgage and its practical application has been fundamentally changed
by the collateral register as well as the implementation of the new pledge regulations. The sub-pledge is being applied today in the Hungarian banks' re-financing
practices. Both the general interest toward the sub-pledge practices and their economic significance are growing, hence the question arised: How could be the legal
regulation of mortgage bond issuance restructured, where the sub-pledge would provide the new basis? This overview presents the sub-pledge's history in law, its rules
when the 2013 Civil Code came into force along with its amendments from the recent years. Knowing all of this now we can start to gather our thoughts on the following
questions: What is then sub-pledge exactly and what are the potentials of its practical use?
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