ANALYSIS OF THE DECREE ON ORGANISING AND FULFILLING MATERIAL OBLIGATION (OFFICIAL GAZETTE OF FRY, No 36, July 24, 1998) AND DECREES ON AMENDMENTS TO THE DECREE ON ORGANISING AND FULFILLING MATERIAL OBLIGATION (OFFICIAL GAZETTE OF FRY, No 32, April 25, 1999)

ANALYSIS OF THE DECREE ON ORGANISING AND FULFILLING MATERIAL OBLIGATION (Official Gazette of FRY, No 36, July 24, 1998)

Decree on organising and fulfilling material obligation passed on July 24, 1998 contains the following provisions:

• Obligation of the citizens, companies and other legal entities (further in the text: the property owners) to fulfil material obligation in order to satisfy the needs of the Yugoslav Army regarding the defence of the country in a state of war, state of immediate danger of war or state of emergency.
• Fulfilling material obligation entails the duty of the property owner (Article 4) to HAND OVER the following items so as to meet the needs regarding the country's defence:

1. motor vehicles, transportation and special vehicles;
2. construction equipment and other machines;
3. communication equipment: radio, radio relay and radio telephone sets, cryptography equipment, telephone and telegraphy equipment, telephone and telegraphy lines, computer of all kinds and for all purposes, satellite, TV and other communication equipment, power supply equipment and other communication equipment of all kinds and for all purposes;
4. ports, docks, port facilities, supply, maintenance and repair of various vessels and ships;
5. aircrafts and airports;
6. pumping stations and warehouses;
7. service stations, repair facilities including all the equipment and installations;
8. sport and hunting weapons;
9. draft animals and other beasts of burden including necessary equipment;
10. buildings and real estate including equipment and installations;
11. other necessary items.

Items under article 4 are being listed and the authorised organs of the Federal Ministry of Defence in the area are to keep records of these items.

The property owners are obliged to provide the authorised state organs, at their request, with licences and other documents regarding these items as determined in the article 4 and are obliged to allow them to do the inspection of assets in order to put them on the list and keep records of them.

According to the article 9 of this Decree the property owner may be ordered to fulfil his material obligation within 30 days at the latest before the date determined for the handover. This time limit does not apply in a state of war, immediate danger of war or state of emergency.

The procedure of taking over the property is as follows: the authorised state organ in the area delivers the request to the property owner, and the owner hands over the property in good condition at a place and time as determined in the request. The authorised person or commission makes out a report (two copies) on reception of the property which is subsequently signed both by the authorised person or the chairman of the commission and the property owner i.e. the person who has handed over the property. A copy of the report which is given to the property owner i.e. the person who has handed over the property marks the fulfilment of the obligation on the part of the owner. The property owner may refuse to sign or accept the report. The reasons for refusal are to be stated in the report. The owner must be informed orally of the place and time for returning the property when the property is being taken over or in writing at a later date.

Compensation to which the owner is entitled is as follows:

1. The property owner is entitled to compensation for the shipping and travelling expenses regarding the handover of the assets and property.
2. The property owner is entitled to compensation for the use of the property as determined by the Tariff for determining the compensation for the use of the listed items. If the compensation is smaller in amount than the obligatory expenses burdening the property or smaller than the rent for the use a facility or equipment which the property owner as a renter has had to pay so as to do the jobs essential for the living and work of the members of his household, the property owner is entitled to the compensation equal in amount to the rent paid. The property owner is entitled to the compensation for the use of the property from the moment of handing over the property until the moment the property is returned. If the property has been used for 12 or more than 12 hours, the full amount of the daily compensation is to be paid to the owner; if it has been used for less than 12 hours – the owner is entitled to half the compensation for that day.

The compensation for the use of the property is to be paid within 15 days from the date of returning the property to the owner, and on a monthly basis, at the request of the property owner, if the property has been used for more than 30 days.

3. PROCEDURE FOR DETERMINING COMPENSATION FOR DAMAGED, DESTROYED OR LOST ASSETS AND PROPERTY (Article 23 – 28). The property owner is entitled to the compensation if the property has been damaged, destroyed or lost while it has been in the hands of the users of the property. The amount of the compensation is equal to the margin between the market value of the property at the moment of handing over the property and its market value at the moment of returning it to the owner. The authorised state organs are obliged to initiate the procedure for determining the amount of compensation. The procedure may also be initiated at the request of the property owner. The amount of the compensation is determined by the commission formed by the property owner. The commission is obliged to inform the property owner of the time and place where it conducts its activities so that he could state the circumstances essential for determining the damage done. The commission suggests one of the following ways of compensation:

• Repair of the damaged property
• Repair of the damaged property and payment of the adequate amount for the decreased market value of the property
• Substitution with adequate type and quantity of items in good condition
• Payment of the adequate amount of money
• In some other way.

The property owner who does not consent to the manner and amount of compensation suggested by the commission may submit an appeal to the authorised court of law.

II ANALYSIS OF THE DECREE ON AMENDMENTS TO THE DECREE ON ORGANISING AND FULFILLING MATERIAL OBLIGATION PASSED DURING THE STATE OF WAR I.E. ON APRIL 25, 1999

The decree on amendments to the Decree on organising and fulfilling material obligation, passed during the state of war i.e. on April 25, 1999, determines the following:

• Except for the items listed in the article 4 of the 1998 Decree, paragraph 3, the following items have been added to the list: equipment for production, transmission and broadcasting radio and TV programmes, rented facilities and rights for broadcasting radio and TV programmes (via satellite as well) and other communication equipment.
• Except for the items listed in the article 4 of the 1998 Decree, paragraph 7, the following items have been added to the list: service stations and stations for inspection of telecommunications equipment, as well as repair facilities including machinery, equipment, installations and laboratory equipment.
• A new paragraph has been added to the article 4 of the 1998 Decree which lists the following items: facilities and equipment for preparation for printing, imaging and printing of books, magazines, brochures, newspapers, reviews, photographies, paintings, posters, aerial photos, maps, cartographic publications and other printed material, films and audio-visual equipment.
• The article 2 of the Decree passed during the state of war determines that if the property owner does not act on the orders of the Yugoslav Army officers, then the Yugoslav Army (or law enforcement officers) may use force to take over the property.

COMPENSATION TO WHICH THE PROPERTY OWNER IS ENTITLED

• As far as the compensation for the use of the property is concerned, the new Decree determines that the property owner is entitled to the compensation which would cover the amortisation of the asset. Thereby the previous article 19 has been entirely changed.
• The article 20 of the new Decree annuls the provision in the paragraph 4 under article 20 of the 1998 Decree regarding the time limit for the payment of the compensation.
• The article 21 of the new Decree determines that the heading "The Procedure for Determining Compensation for Damaged, Destroyed or Lost Property" be deleted entirely including the articles 23-28 of the 1998 Decree meaning that the compensation for damaged, destroyed or lost property is no longer valid.

Accordingly, the property owner, in comparison to the 1998 Decree, is entitled only to

• Compensation for the use of the assets and property
• Compensation for the shipping and travelling expenses.

The new 1999 Decree does not allow for the compensation for damaged, destroyed or lost assets and property.