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Varadinov & Co.
Legal Bulletin

Varadinov & Co Attorneys at law is recognised in the IFLR1000
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State Gazette, issue 64 /August 3rd , 2018
Increased transparency and competition in the sale of state property rights on them foresee changes in the Privatization and Post-privatization Control Act. The sale of real estates - private state property and property owned by commercial companies with more than 50 per cent state shareholding or commercial companies whose shares or shares are owned by a commercial company with more than 50 per cent state ownership of the capital, will already be done through an electronic property sales platform. When selling properties - private state property outside the above, the regional governors at the location of the property will also use the electronic platform. The Council of Ministers will have to adopt an Ordinance on the electronic platform for the sale of real estate - private state property and property owned by commercial companies with more than 50 per cent state participation in the capital or companies whose shares or shares are owned by a commercial company with more than 50 per cent state equity. In all cases auctioning is done through the electronic platform. Similar changes are introduced in the State Property Act and the Energy Act.

State Gazette, issue 65 /August 7th, 2018
Excessive oversight and risk management of special investment purpose companies provide are foreseed in the Law. A claim is made on the origin of securitization assets - an activity where real rights (ownership and right to build) on real estate or rights to pecuniary claims, including future receivables, materialize in securities offered to the public. At least 70 percents of the assets of the special purpose vehicle for securitization of real estate should be the result of the activity of purchase of real estate and real estate rights, construction works and improvements in order to provide them with management, renting, leasing or leasing and selling them, or buying or selling receivables. The same requirements apply to the gross revenue for the financial year of a special purpose vehicle for securitization of real estate. The requirements shall be met within two years of the issuance of a license to the special purpose vehicle for the securitization of real estate. The Articles of Incorporation of the Companies must contain already its intentions to participate in the establishment of units or shares in a specialized company with an exclusive subject of activity under Art. 22a of the Act as well as risk management rules if the company participates in the establishment or acquisition of shares or shares in such a specialized company. The members of the board of directors of the as well as the persons authorized to manage or represent the company must have the higher education, professional qualifications and experience necessary to manage the company’s business.
In cases where the SIPC concludes a credit agreement with a bank other than the depositary bank, payments through the creditor bank may not exceed the credit line specified in the credit agreement for a current account. The company shall notify the Commission and the depositary bank about the creditor bank within three business days of signing the credit agreement. The notification shall contain at least information on the type, size, currency, interest rate, annual percentage rate of charge, loan term, collateral and joint debtor, as well as interest and principal payment periods. The Company shall be obliged to notify the Commission and the Depositary Bank of any amendment to the contract resulting in a change in the information submitted under sentence one. The special investment purpose companies is required to submit to the depositary bank every quarter information on the utilization of the loan and its repayment. The information is provided by the 15th of the month following the respective quarter.
Except in the present circumstances, the Financial Supervision Commission will withdraw the license issued to the company and if it has not carried out the activity for which it has been licensed for more than 6 months “; if he expressly waives the license issued; if it has not implemented a compulsory administrative measure under this Act, the Public Offering of Securities Act or the acts for their application; if it grossly or systematically violates the provisions of this Act, the Law on Public Offering of Securities, the Law on Measures against Market Abuse with Financial Instruments, Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014. on market abuse or the instruments for their implementation. After the entry into force of the decision to withdraw the license to carry out activity as a on the grounds of explicit denial of the license, the company may continue to exist as a public limited company, which is a public company within the meaning of the Public Offering of Securities Act . The Commission shall send the decision of the Registry Agency to delete its object of activity and the designation ” Special Investment Purpose Public Limited Company ” or the abbreviation “SIPPLC”. Special Investment Purpose Companies that are licensed and operate until the amendment enters into force bring their business and assets into line with its requirements within 18 months of their entry into force.
Changing jurisdiction for the convenience of citizens and unloading the capital courts from consumer and insurance disputes foresee the latest changes in the Civil Procedure Code. Claims to and against users are already brought before the court in whose area the user’s current address is located and, in the absence of a current address, the permanent address. Claims for damages under the Insur- ance Damage Insurance Code against an Insurer, the Guarantee Fund and the National Bureau of Bulgarian Motor Insurers are brought before a court in whose area at the time of the occurrence of the insured event is the current or permanent address of the claimant, seat or place of occurrence of the insured event.
An objection of inappropriateness of the case at the location of the immovable property may be made by the party and raised by the court of its own motion until the first hearing at the first instance, and not until the judicial inquiry has been completed, as it has been so far. An objection of inadmissibility of the case in consumer and insurance disputes as well as in claims against the State and state offices, including branches and branches of the latter, may be made by the defendant at the latest within the time limit for responding to the claim and raised by the court of its own motion until the closure of the first hearing. Judicial proceedings pending the entry into force of the changes are completed under the previous order, regardless of the change of jurisdiction.