Terms and Forms of Disposal
The Law on State Property precisely defines the terminology needed before an auction. State property comprises movable and immovable items and non-material property value in state ownership, while disposal covers transfer to municipal ownership, privatization, transfer of the right of management, exchange, transfer in the form of leasing, distribution and destruction. Privatization is the acquisition of ownership of state property through electronic and/or public auction, direct sale, direct sale on the basis of competitive selection, and gratuitous transfer.
From the valuation standpoint the monetary concepts are decisive: the initial privatization amount is the minimum value of the property to be transferred, on which the price grows during trading; the privatization price is the sum payable by the acquirer, composed of the privatization amount and, where applicable, sums payable to a third party; privatization revenue is the portion entering the budget. Participation also involves the deposit — a sum paid to secure performance of the obligation, to which the freezing of funds in a participant's account upon victory or breach is equated.