26 Romania

Subject(s):

Banks and cross-border issues — Contractual set-off — Insolvency set-off — Judicial set-off

This chapter provides an overview of the law of set-off in Romania, both outside and within the context of insolvency. Under Romanian law, set-off is of two types: legal set-off, which arises by operation of law, and contractual set-off, which arises through a written agreement between parties. The rules for legal set-off are laid down in the Romanian civil code adopted by Law no. 287/2009 (the New Civil Code). The chapter first considers legal and contractual set-off between solvent parties before discussing set-off against insolvent parties. It explains bilateral set-off as well as financial collateral and challenge in insolvency proceedings. It also analyses the provisions of EU Regulations, EU Insolvency Regulation, and the New Civil Code that are relevant to cross-border set-off.