There are quite a few end-of-life products, parts and materials whose recycling could not be promoted without institutional support by means of legislation. In such a law for recycling of end-of-life products, parts and materials, important variables such as the institutionally targeted amount of recycling, the amount of collected materials and so on are adjusted by institutional rules rather than by a market mechanism. We analyze the dynamic adjustment process of an institutionalized recycling system, taking the Law for Recycling of Containers and Packages as an example. We show the stability conditions of the dynamic system, and demonstrate how the system could be stabilized by proper selection of parameters.