Legal Acts in English

Definitions used in this Law shall have the following meaning:

1) Factoring is the financial service of selling and purchasing existing future or non-matured short-term money claims arising from agreements on the sale of goods or provision of services, either nationally or abroad;

2) Any existing and non-matured or future short-term money claims, either in whole or in part, arising from an agreement on the sale of goods or provision of services entered into between legal entities and sole proprietors, may be subject to factoring.

3) Short-term claims are claims maturing up to one year from the date of sale of goods or provision of services under the pertinent agreement on the sale of goods or provision of services;

4) The following may act as parties to factoring:

   (1) Any bank, business entity or sole proprietor domiciled in the Republic of Serbia (‘Serbia'), or any such entity domiciled abroad and registered under legislation of its home country, may act as assignor, the party assigning to the factor its claims against the debtor arising from an agreement on the sale of goods or provision of services;

   (2) The factor, purchasing claims from the assignor, shall be any:

     (a) Bank, as governed by legislation concerning the operation of banks;
     (b) Business entity, set up as a joint-stock or limited liability company, domiciled in Serbia and in possession of an authorisation issued by the Ministry of Finance (‘the Ministry') to engage in factoring;
     (c) Foreign bank or foreign business entity, solely in matters of cross-border factoring;

   (3) Any bank, business entity or sole proprietor domiciled in Serbia, or any such entity domiciled abroad and registered under legislation of its home country, may appear as debtor.

Any existing non-matured or future short-term money claims, either in whole or in part, arising from any agreement on the sale of goods or provision of services entered into with beneficiaries of funding provided from the budget of the Republic of Serbia, a sub-national unit, or local authority, or with beneficiaries of funding provided by mandatory social security organisations, may also be subject to factoring.

Future claims may be subject to factoring only if their characteristics are such that they may be defined and if the factoring agreement stipulates the debtor.

Any provision of an agreement assigning future claims shall have legal effect as of the time such claims arise.