Regulatory Alerts2016-01-01
Factoring Act (Unofficial Consolidated Text - NN, No. 94/14 and 41/16)
The Croatian Parliament enacted the Factoring Act to regulate factoring contracts, the rights and obligations of parties, and the establishment and supervision of factoring companies. The legislation defines key terms, distinguishes between domestic and foreign, recourse and non-recourse, and supplier (reverse) factoring, and mandates that only licensed factoring societies or credit institutions may perform these activities. It establishes strict capital requirements, governance rules regarding qualified shareholdings, and supervisory powers for the Croatian Financial Services Supervisory Agency (HANFA).
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