the noble landowners of prussia were known as junkers.
the noble landowners of prussia were known as?
junkers
na
na
the roots of the german pfandbrief system reach back to the year 1769. in the aftermath of the seven years' war (1756–1763) that had ravaged the country prussian king frederick the great introduced the pfandbrief system with a ”cabinets-order” to ease credit shortage for the nobility. based on his royal decree, prussia set up so-called ”landschaften,” compulsory public-law associations of noble landowners, within the individual provinces. to refinance loans to their members landschaften issued debentures that largely correspond with the present-day mortgage pfandbrief since the creditor acquired a direct claim over the estates the member had pledged as security. this pfandbrief system rapidly spread throughout all of europe. towards the end of the nineteenth century, it was widely adopted for the refinancing of public sector loans. the second decisive boost to the development of the pfandbrief occurred when landschaften outside prussia started issuing pfandbriefe for which all the properties lent against by the landschaft served jointly as security. as before the loans raised by the landschaften were not paid out in cash, but in pfandbriefe. in 1862, the first german mortgage bank, frankfurter hypothekenbank in frankfurt am main, opened its doors. numerous other mortgage banks followed in rapid succession in almost all german federal states. by the beginning of the twentieth century 40 private mortgage banks existed. mortgage banks concentrated from the outset on real estate financing. the rapidly expanding towns and cities in the area of industrialization were in need of the housing construction and commercial properties financing. the 1900 mortgage bank act (hbg) is deemed pioneering legislation until today. it provided a legally prescribed, uniform organizational framework for this group of credit institutions. it was in force for more than a century until the pfandbrief act entered into force in 2005 (source: association of german pfandbrief banks).
pfandbrief