Under this provision, a number of threshold requirements must be met before the Court is required to grant a stay of proceedings in favour of international arbitration. Among them, the procedure must be “on all matters that are the subject of the international arbitration agreement.” 58 Pfandrecht, 1967, paragraph 3, point a): “A collateral is established by agreement between the debtor and the creditor.” The use of mortgages in Bosnia and Herzegovina is widespread and is generally considered to be very effective security. Under a mortgage agreement, the debtor mortgages real estate to secure his (or another person`s original debts). 184 Maitland, , Equity (1949) 161Google Scholar, Walsh v. Lonsdale 21 J.D. 9 declared it “a bit of a difficult and dangerous case.” The passage takes place as follows: “I take a lease; my landlord then sells the land to X; or no notification my lease is good against X. I take a simple agreement for a lease, and the person who agreed to grant the lease sells and passes on Y, who has nothing of my right. There is no obligation to grant me a lease. The extent of potential pawning claims in Bosnia and Herzegovina is significant: it is possible to mortgage personal property, rights, bank accounts, shares and receivables. A commitment must be described in a specific way in the pawning contract so as to allow a subsequent determination of the nature and extent of the collateral. The description of collateral in the pledge register should not be detailed, but in the case of collateral for certain assets, as defined by the Executive Law, the serial number of the mortgaged assets must be registered. When the mortgage-backed debt becomes due and payable, the creditor is entitled to request payment by public sale of the mortgaged property.
Under the law of Bosnia and Herzegovina, parties are not allowed in a mortgage agreement to set a mortgage-backed debt by transferring the use or ownership of the mortgaged property to the borrower. 26 With respect to the “illegality” of agreements involving the breach by one of the parties of a contract with a third party, cf. Corbin, , on contracts (1962) vol. 6AGoogle Scholar, No. 1470. 111 Contract Law,1973, para. 40: “An obligation may be carried out by a person other than the debtor, unless the debtor is required to personally honour it by the nature of the undertaking or agreement between the parties.” 112 Mandatory transfer of law, 1969, paragraph 1, point a): “The right of a creditor… may be transferred without the debtor`s consent, unless its portability is denied or restricted by law, the nature of the law or by an agreement between the debtor and the creditor.” Under the law of Bosnia and Herzegovina, the deposit agreement does not provide that the deposit-taking holder will acquire ownership of the mortgaged property in the event of default by the lender (or the original debtor).