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Last year, the Supreme Court of the Czech Republic issued under no. sp. Stamp No. 33 Cdo 3694/2008 relatively fundamental decision

Last year, the Supreme Court of the Czech Republic issued under no. sp. Stamp No. 33 Cdo 3694/2008 relatively fundamental decision

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Last year, the Supreme Court of the Czech Republic issued under no. sp. Stamp No. 33 Cdo 3694/2008, a relatively fundamental decision, in which it once again states that any arrangements by which the pledgee would be excluded or limited in dealing with the pledge contrary to the law are invalid according to §39 of the Civil Code, as they contradict the purpose (the meaning of) lien. The right of lien does not fundamentally prevent the owner of the lien (mortgagor) from dealing with the lien. If the law does not stipulate otherwise, the mortgagee may alienate the pledge, re-mortgage it, create an encumbrance on it, lease it, etc.

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