Abstract

This article discusses the impact of expiration of secured claims on the existence and enforceability of the collateral. Under the Polish law, a plea of expiration of a secured claim is fully effective only with respect to surety and blank bill of exchange if the bill was filled out after the time of expiration. In the case of collateral guaranteesin rem (mortgage, pledge, maritime hypothecation) this plea is effective only with respect to secured auxiliary claims, though it does not exclude a creditor’s right to discharge the principal of the secured claims from the collateral. Collateral guarantees (bank guarantees, transfer title, etc.) generally protect the creditor in full against the effects of restraining expiration with respect to the secured claim (the principal and auxiliary claims).