Private Equity Insurance Group SIA v 'Swedbank' AS

European Union – Payment connected with movement of goods, services or capital. The Court of Justice of the European Union gave a preliminary ruling deciding that Directive (EC) 2002/47 was to be interpreted as conferring on the taker of financial collateral, such as the collateral at issue in the main proceedings, whereby monies deposited in a bank account were pledged to the bank to cover all the account holder's debts to the bank, the right to enforce the collateral, notwithstanding the commencement of insolvency proceedings in respect of the collateral provider, only if, first, the monies covered by the collateral had been deposited in the account in question before the commencement of those proceedings or those monies had been deposited on the day of commencement, the bank having proved that it had not been aware, nor should have been aware, that those proceedings had commenced and, second, the account holder had been prevented from disposing of those monies after they had been deposited in that account.

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