Aviabaltika' UAB v 'Ukio bankas' AB (in liquidation)

European Union – Finance. Article 4(5) of Directive (EC) 2002/47, as amended, should be intepreted as requiring member states to adopt rules which enabled a taker of collateral provided under a security financial collateral arrangement to recover its claim, arising from a failure to discharge the relevant financial obligations, from that collateral, where the enforcement event occurred after insolvency proceedings had commenced against that taker. The Court of Justice of the European Union so held in a preliminary ruling in proceedings concerning a payment made by a bank in Lithuania under collateral arrangements entered into between that bank and the applicant company.

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