The short history of the Hungarian floating security

The Hungarian floating security was introduced with the 1996 secured transactions law reforms assisted by the European Bank for Reconstruction and Development. Although it became quite widely used in the following years, the drafters of the 2013 new Civil Code abolished it, citing issues with the primary explanation of problems of its enforcement in insolvency proceedings. Besides providing a review of the reasons and circumstances surrounding its introduction, the chapter focuses more on the proclaimed and other neglected reasons, as well as misconceptions, behind its demise. In addition to filling gaps in comparative scholarship on secured transactions law reforms in Civil Law systems, the lessons that could be drawn should be of utmost importance to other countries in the process of or pondering reforms of their secured transactions law systems involving floating security, primarily but not exclusively those of Civilian orientation.