This article was first published on the International Law Office

Act 510/2002 on Payment Systems took effect on January 1 2003. It is the first domestic law to regulate payment transactions and was drafted to ensure compliance with EU law.

The law introduces some rules that are exceptions to general legal principles.

If the courts declare an individual to be bankrupt, only the bankruptcy trustee can carry out valid acts on the individual's behalf. However, the funds deposited in the individual's bank account may be used (i) to settle his or her liabilities, or (ii) by the bank in processing and settling instructions that were received prior to or on the day of the declaration of bankruptcy, provided that the fact was unknown to the bank and the parties in question.

Thus, the bankruptcy does not affect security granted by the bankrupt individual to another individual. Similarly, credited funds that have been earmarked for the purpose of settling liabilities (including those serving as the security) are not subject to enforcement according to special laws.

New rules have also been introduced regarding the National Bank of Slovakia. While parties from different jurisdictions may agree on a particular governing law for their property transactions, the rights and duties that arise in relation to an individual or operator of the domestic banking system (as well as the rights of other persons to securities granted to them) must be governed by the law which governs their agreement on the establishment of the banking system.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.