The register of security interests contains filings on liens, factoring contracts, finance lease, retention of title. The IT system (security interest system) designed to make electronic filing statements on security interests, to maintain these data and enable their inspection is operated by the Hungarian Chamber of Civil Law Notaries. Security interest filing statements may only be made by registered account holders on both sides, thus either obligors or obligees must be registered users to this effect.

Registration may be threefold:

  • online on the security interest platform by electronic signature,
  • online on the security interest platform without electronic signature,
  • before a notary if the applicant has no electronic signature.

In order to validate the registration the applicant has to turn to a notary to make an identification statement in which such applicant declares that all data submitted in the course of registration were true and accurate. Such identity statement may be made within 15 days of submitting the request for registration.

If an applicant requesting registration intends to act on behalf of a specific person or organisation as a permanent representative, his/her due authorisation must be certified by an authentic instrument or a private document with full probative force at registration. Identification statements may be made before any notary.

At his/her option, the registered user may file a security interest statement in the following modes:

a) if the registered user has a qualified electronic signature he/she may file the statement on the security interest platform by completing a corresponding form and forwarding it to the system on his/her own;
b) before any notary;
c) if the parties so provide the notary incorporating the given pledge agreement, sale by retention of title, factoring contract or finance lease into an authentic instrument will register them into the system;
d) the attorney who countersigned the given pledge agreement, sale by retention of title, factoring contract or finance lease may also be authorised by the parties to register them into the system;
e) a natural person without a permanent representative may authorise an attorney as a registered user to file a security interest statement on his/her behalf.

Any one may have access to and inspect the security interest register through the online platform of the system ( Searches may be carried out primarily by the name of the obligor, the reference number of the entry, or the chassis number of the motor vehicle concerned, and as of 15 March 2015 by five ID data of an asset.

National Register of Pledges, Register of Pledges over Motor Vehicles

On 15 March 2014 a new Civil Code came into force in Hungary, which introduced the Security Interest Register as depicted in detail at point 2.6 above. However, the former registers governed by the previous Civil Code are not terminated, and any related modifications have to be administered therein. The National Register of Pledges (regarding charges on movable assets, and floating charge), as well as the register of pledges over motor vehicles may be inspected by anyone free of charge on the online platform of the Security Interest Register.

In Hungary the property relations of spouses who do not conclude a marriage contract are governed by the community of property regime, that is, apart from some exceptions, the spouses are presumed to acquire property evenly and assume liabilities jointly.

No such presumption as to property exists between cohabitants. They acquire common property in proportion to their contributions. Cohabitants may be persons of different or the same gender living together without any formalities, while the expression ‘registered partners’ only refers to same sex couples living in a marriage-like relationship.

The spouses or partners may arrange their property interests as they wish by marriage or partnership contracts opting out and deviating from the statutory regime. Instead of the default regime spouses or future spouses may opt for the community of accrued gains or the separation of property systems. If no marriage or partnership contract exists the statutory regime shall apply.

The purpose of registering such contracts into a national register is to facilitate proving the existence of such contracts, as the Register – until there is evidence to the contrary – shall provide authentic proof as to their existence, thus third parties may not invoke that they were unaware of the existence of such contracts. The IT system underlying the Register is operated by the Hungarian Chamber of Civil Law Notaries.

The marriage or partnership contract shall solely be deemed valid if it is executed in a notarial deed or concluded in a private document countersigned by an attorney, however it is effective as against third parties only if registered into the Register of Marriage and Partnership Contracts, or if the spouses (registered partners, cohabitants) prove that the third party was cognizant of, or should have been aware of the existence and content of such contract. Therefore the validity of the marriage or partnership contract does not rest on registration, it only has significance when it comes to effectiveness as against third parties.

An application for the registration of a marriage or partnership contract, – or the amendment, removal, termination or cessation thereof -, may be submitted to a civil law notary in person jointly. The contract or the document on its amendment, removal, termination or cessation thereof shall be attached to the application.Jurisdiction of a notary is established by the domicile or place of residence of either of the spouses/partners. The notaries in Budapest have jurisdiction throughout the capital.

The registration, or retrieval of data from the Register is free of charge.

With respect to marriage or partnership contracts queries may be made as to the existence or content of such contract.

Inquiry on the existence of a marriage or partnership contract

Any person who can certify a possible legal interest may look into the Register and check the existence of a marriage or partnership contract in any notary office and make notes for his own purposes. For inspection it is necessary to supply the surname and first name, the surname and first name at birth, date and place of birth, mother’s maiden surname and first name of one of the parties. In the course of justifying a possible legal interest a transaction or any other reasonable cause shall be indicated which would secure the legitimate grounds for inspection.

Inquiry on the content of a marriage or partnership contract

Information as to the contents of a contract may only be supplied by the prior written consent of one of the contracting parties, and it may exclusively be requested from the notary involved in the registration. The notary shall provide the person making a query with information on the contents of a marriage or partnership contract by issuing a certified office copy if he/she executed the contract him/herself as a notarial deed, or by preparing a certified copy if it was notarized by another notary or was executed in a private document countersigned by an attorney.

Upon request of a person included in the Register the notary shall issue a certificate to testify his recorded data, or on the contrary, for a person not registered to certify that the respective person has not been entered into the Register.

The Register of Declarations of Cohabitation certifies that those who made a statement to the effect that they live in cohabitation and had such declaration recorded into the Register do live in cohabitation. The Register of Declarations of Cohabitation is maintained by the Hungarian Chamber of Civil Law Notaries subject to statutory authorisation and is administered by the notaries.

By offering the possibility of making a declaration on cohabitation the State enables those living in partnership to make a joint statement on the existence of their partnership before a notary, which authentically testifies the existence of such partnership until there is proof as to the contrary.

The procedure to record statements on cohabitation may be initiated by the mutual request of adult partners. A declaration as to cohabitation may only be made personally. In case of a joint request the jurisdiction of the notary is established by the domicile or place of residence of either of the partners.

The applicants have to make a declaration to the effect that they live in a partnership with each other under the Civil Code.

The fact of such declaration is entered into the IT database operated by the MOKK, which entry creates a rebuttable presumption. The notary issues a decree on making an entry into the Register of Declarations of Cohabitation, which has the same effect as a binding court judgement. Evidence is not admissible in the procedure.

The Register will attest the existence of the partnership solely from the time of registration; it is not possible to make a statement with retrospective effect. The Register of Declarations of Cohabitation retains data for 100 years from the date of making the entry on the existence of cohabitation.

In the event the partnership no longer exists, it is sufficient if one of the partners makes a statement to this effect before a notary, and subject to the unilateral application an entry is made on such statement.

Upon request the notary issues a certificate to certify the data of a person registered in the Register, or for the person not registered to certify that he/she has not been entered into the Register.

A registered partnership is created when two simultaneously present persons of the same gender who are over eighteen years of age personally declare before the registrar that they both wish to enter into a registered partnership. A registered partnership may only exist between people of the same gender, and such a partnership has legal consequences – similar to those of marriage – specified by law. If the relationship deteriorates, so that the parties wish to end their partnership, and there is an underlying consent as to such dissolution and the division of common property, they may request the dissolution of their partnership from a competent notary. A settlement approved by a notary has the same effect as a court decision.

Providing assistance to replace lost, stolen or destroyed securities or instruments (e.g. savings books, promissory notes, cheques) falls within the competence of notaries.

In order to provide a replacement it is required to render the given security or instrument annulled, which may be requested from the notary by way of an application. The essence of annulment is that no right or claim set forth in the annulled securities/instruments may be exercised, or enforced, respectively, any more, and such securities/instruments may be replaced.

The notary posts a public notice setting out data included in the application. Such notices have to be published for 6 months – relating to promissory notes and cheques for 1 month, and it may be reduced to 1 month in case of instruments.

The publication of the notices is ensured by the MOKK, by providing an online public electronic registry continuously available for inspection free of charge.

The reason such public notices are required to be posted is that while they are accessible the possessor of the given securities/instruments may present such securities/instruments before the proceeding notary or may report and supply information on their whereabouts. In such cases the notary terminates the procedure. However if such securities/instruments are not presented or no information is supplied on their whereabouts, the notary renders such securities/instruments cancelled. Subject to the notary’s decree on annulment the issuer issues new securities/instruments and places them at the beneficiary’s disposal.

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