On 13th of March 2018, in the State Gazette No 22 were announced the amendments of the Bank Insolvency Act. The amendments may be divided in two groups.
The first one concerns the bank insolvency issues in general. Some of the significant changes are as follows:
1. The temporary assignee of bankruptcy and permanent one do not have the rights to release securities established by the debtors till the beginning of the insolvency sale, except in case of cash payment for the entire debt.
2. Invalidity of deals in which receivable originating by the bank is transferred to third party, whereas the transferor did not receive property, money or asset (other than receivable for a price) in proportionate amount and reasonable term. The rule applies regardless of the number of the transfers and the invalidity is in favor of the bank and the creditors.
The invalidity above shall be established by the court upon a claim of an assignee of bankruptcy, including the temporary 
one, as well as the state fund for guarantee of bank deposits. The claims shall be submitted within 5 years as from the opening of the bank insolvency procedure. The pending court case is a ground other court or executive case to be stopped, if its subject is receivable of such third party.
3. In case of invalidity established by the court, the third party will lose its rights as a creditor, if its receivables are on the ground of the invalid deal.
The second group of amendments concerns Corporate Commercial Bank – in insolvency (CCB) in particular. The main provisions provided are as follows:
1. Any deletions of securities in favor of CCB performed by the assignee of bankruptcy or other special assigned representatives of CCB shall be considered void and all securities shall be deemed as valid. This rule applies for deletions in the period between the special supervision appointment and the beginning of the insolvency sale. The rule does not apply in case the bank’s receivable is entirely paid in cash.
2. In the period between the special supervision appointment and the expiration of 6 months as from the entering into force of the amendments, the legal term for the action of the securities in favor of the bank shall not be counted. The bank may renew any security in this period.
3. The securities shall have action toward any third party, regardless of the way of acquisition of the respective property by such third party.
4. Any transfer or order of transfers of shares or stocks in companies which are performed by a debtor of CCB after special supervision appointment could be declared void toward the bank and the creditors. The invalidity shall be established by the court on a claim of an assignee of bankruptcy, including the temporary one, as well as the state fund for bank deposits guarantee. The claims shall be submitted within 5 years as from opening of the bank insolvency procedure.
An explicit provision states that the aforementioned rules apply for the bank insolvency procedures opened up to date of entrance into force of the amendments. Other rule provides for application as from 20-th of June 2014 of Articles 59, Paragraphs 5-7 of Bank Insolvency Act which concerns the compensations between debts and receivables. In addition, there is a prolongation of the term for submission of claims for invalidity of deals.
The serous amendments and its action in the past are motivated by the respective members of Parliament by protection of public interest, publicity of the facts of the bankruptcy of CCB and for future cases. Some of the arguments are that the provisions above will provide effective measures for collection of assets of banks in insolvency and in CCB case will effectively stop “the secondary plundering” of its assets.
