{"id":1138,"date":"2026-02-24T21:04:03","date_gmt":"2026-02-24T20:04:03","guid":{"rendered":"https:\/\/vraneseviclaw.com\/?p=1138"},"modified":"2026-02-24T21:16:36","modified_gmt":"2026-02-24T20:16:36","slug":"what-are-the-effects-of-the-amendments-to-the-factoring-act","status":"publish","type":"post","link":"https:\/\/vraneseviclaw.com\/en\/what-are-the-effects-of-the-amendments-to-the-factoring-act\/","title":{"rendered":"What Are the effects of the amendments to the Factoring Act?"},"content":{"rendered":"<p><em>Author: Attorney-at-law Aleksandar Popovi\u0107<\/em><\/p>\n<p>When a discussion is opened about law being a ,,living thing\u201d, one of the first topics is the amendment and supplementation of statutory solutions. A recent example of amendments to the Factoring Act is a proper example of how the legal system recognizes the need for additional definition and expansion of concepts for more adequate practical application, as well as a series of other novelties that improve the application of this institute.<\/p>\n<p>In the <a href=\"https:\/\/vraneseviclaw.com\/en\/factoring-and-forfaiting-regulatory-aspects-in-the-republic-of-serbia\/\">previous text<\/a>, an overview was given of the concept of factoring, the participants in this relationship, as well as the basic functions of this modern legal institute. In the continuation of this article, we will look at the novelties brought by the amendments to the <a href=\"https:\/\/www.paragraf.rs\/propisi\/zakon_o_faktoringu.html\">Factoring Act<\/a>, as well as their significance and the anticipated effects.<\/p>\n<h3>Definition of factoring<\/h3>\n<p>The new statutory provisions provide for a broader group of entities entitled to be assignors of receivables. Instead of the previous solution under which the assignors were a bank, a company or an entrepreneur with a registered seat in the Republic of Serbia, the following may now also occupy that position: <strong>a cooperative society, a registered agricultural holding, a business association, an institution and other legal entities that perform activities for profit, with a registered seat in the Republic of Serbia<\/strong>, as well as the same types of entities with a registered seat abroad, registered in accordance with the laws of their domicile.<\/p>\n<p>This amendment achieves an expansion of the group of entities that can use the factoring service and, accordingly, besides the fact that the entities to whom the assignment of receivables is enabled gain an additional financing option that can contribute to the liquidity of their business, the factoring business itself is popularized.<\/p>\n<h3>Change of competence and supervisory authority<\/h3>\n<p>The Ministry of Finance, which until the start of application of the new statutory solutions was competent for supervising the operations of factoring companies, transfers its competences to the Securities Commission. A novelty is that the Commission has also been granted competence for issuing, terminating and revoking authorizations for performing the business of factoring. This amendment is a direct consequence of the World Bank\u2019s suggestion, with the explanation that the supervisory body must possess the full scope of powers.<\/p>\n<p>However, the application of these provisions is postponed until 13 June 2026, since that is when six months will have elapsed from the date the law entered into force, which is the period left for the Commission to assume competences.<\/p>\n<h3>Security instruments<\/h3>\n<p>The law enables the transfer of accessory rights and security instruments to the factor and provides that the transfer of accessory rights and security does not require the conclusion of a new agreement, except where provisions of another law so require. The new statutory solution provides for the factor\u2019s duty to return the receivable to the assignor together with all accompanying security instruments from the underlying transaction after the factor\u2019s recourse against the assignor has been realized.<\/p>\n<p>A novelty is also that the factor and the assignor may agree that a solemnized factoring agreement, furnished with an enforceability clause, acquires the force of an enforceable instrument. This means that, in practice, enforcement proceedings may be initiated directly on the basis of a solemnized agreement that has an enforceability clause.<\/p>\n<p>Although the <a href=\"https:\/\/www.paragraf.rs\/propisi\/zakon_o_izvrsenju_i_obezbedjenju.html\">Enforcement and Security Act<\/a> did not provide for a factoring agreement on the list of enumerated instruments considered enforceable (unlike a mortgage agreement and a pledge statement), this solution introduced by the amendments to the Factoring Act is nevertheless compatible with the existing law governing enforcement proceedings, since it can be subsumed under the blanket provision set out in the final item of Article 41 paragraph 1 of the Enforcement and Security Act.<\/p>\n<h3>Central factoring register<\/h3>\n<p>The introduction of a central factoring register brings multiple benefits in terms of transparency: in addition to facilitating supervision over factoring transactions, it prevents the possibility that the same receivable is assigned multiple times. This amendment will be implemented in such a way that all electronic invoices issued in factoring transactions and registered in the electronic invoicing system will be recorded in a unified database that will be centralized and up to date.<\/p>\n<p>Up-to-dateness will be ensured by making this database interoperable with the existing SEF. It will not be relevant whether the invoices relate to traditional or reverse factoring. The commencement of application of the central factoring register and the obligation to enter data is envisaged upon the lapse of 18 months from the entry into force of the amendments to the law.<\/p>\n<h3>Conclusion<\/h3>\n<p>It gives the impression that these amendments bring progress in terms of legal certainty, as well as that all the stated amendments are aligned with the course by which this modern legal institute is being modernized and harmonized with practical needs. The expansion of the circle of assignors makes factoring more accessible, the central register prevents potential abuses, while the enforceability of the agreement strengthens the position of the factor. The transfer of supervision from the Ministry to the Securities Commission strengthens regulatory discipline, but also indicates the need to adjust statutory solutions to the market. Strict and consistent application of these statutory provisions would mean a sure step toward a better and more modern legal environment.<\/p>\n<p><em>Note: This text reflects the author\u2019s personal opinion and does not constitute legal advice.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Author: Attorney-at-law Aleksandar Popovi\u0107 When a discussion is opened about law being a ,,living thing\u201d, one of the first topics is the amendment and supplementation of statutory solutions. A recent example of amendments to the Factoring Act is a proper example of how the legal system recognizes the need for<\/p>\n","protected":false},"author":2,"featured_media":1136,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[949,1038,376,377,1040,117,130,22,194,1035,196,197,1037,545,1010,961,962,1039,1036],"class_list":["post-1138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aleksandar-popovic-2","tag-attorney-at-law-aleksandar-popovic-2","tag-attorney-belgrade","tag-attorney-serbia","tag-central-factoring-register","tag-company-law","tag-contract-law","tag-corporate-law","tag-factoring","tag-factoring-act","tag-factoring-agreement","tag-factoring-agreements","tag-factoring-serbia","tag-law-firm-belgrade","tag-law-firm-for-compliance","tag-law-firm-for-corporate-law","tag-online-law-firm","tag-security-instruments","tag-serbian-factoring-act"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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