Provisions of the Law on Enforcement and Security Interest regulate the procedure in which courts and public enforcement officers conduct the compulsory collection of enforceable creditors’ claims based on enforceable and credible documents(enforcement proceedings), the procedure for putting a lien on claims and the status of public enforcement officers.
Enforcement proceedings and security interest proceedings are initiated by a judgment creditor filing a motion for the enforcement based on enforceable or credible document or a motion for security interest, or ex officio only when so provided for by the law.
A court decides on the motion for enforcement based on enforceable or credible document and on the motion for security interest.
A public enforcement officer decides on the motion for enforcement on the basis of credible document for settling monetary claims arising from utility services and related activities.
The enforcement proceedings are conducted upon adoption of the decision on enforcement or on security interest.
Court has exclusive jurisdiction for the enforcement of joint sale of real estate and movable property, acts, omissions or sufferance (Art. 359-367) and the enforcement of enforceable documents in connection with family relations and reinstatement of an employee.
Public enforcement officers has exclusive jurisdiction for the enforcement of other enforceable documents, decisions of enforcement based on a credible document, decisions on adopting the motion for counter-enforcement and decisions on enforcement of decisions on enforcement of the court-imposed penalties.
Ground for rendering the decision of execution is enforceable or credible document.
Types of Enforceable Documents
The following are enforceable documents:
- Enforceable judicial decision or court settlement, stating consideration, act, omission, or sufferance
- Final decision rendered in misdemeanor or administrative proceedings and settlement in administrative proceedings, stating entitlement to the collection of a payable, unless a specific law provides otherwise
- Extract from the Pledge Register and extract from Financial Leasing Register
- Mortgage contract and pledge statement
- Reorganization plan in bankruptcy procedure, confirmed by a court ruling
- Notary documents having the power of the enforcement document
- Agreement on the resolution of dispute through mediation, which fulfils the conditions stipulated by the law regulating mediation in dispute resolution
- Other document designated as enforcement document by law.
Mortgage contract and pledge statement are enforcement documents if executed or given in the form specified by the law regulating the mortgage, if they contain provisions stipulated by such law, and if they are recorded in the cadastre of immovable property as the executive extrajudicial mortgage.
Judicial and Administrative Decision and Settlement
Judgment, writ and any other decision rendered in the proceedings before court, domestic arbitral tribunal and the Court of Honor of the Chamber of Commerce, are deemed to be the judicial decision, while a settlement concluded before a court, domestic arbitral tribunal or Court of Honor of the Chamber of Commerce is be deemed to be the court settlement.
Decision or conclusion imposed in the administrative procedure are deemed to be the administrative decision, while a settlement concluded in administrative procedure is deemed to be the administrative settlement
Enforceability of Judicial and Administrative Decision and Notary Public Document that has the power of Enforcement Document
A judicial decision stating a consideration or act shall become enforceable if it has become final and if the time period for voluntary compliance has expired. The voluntary compliance period runs from the date on which the judicial decision is served on the enforcement debtor, unless otherwise provided for by law.
A judicial decision stipulating a condition for compliance becomes enforceable upon effectuation of such condition.
A judicial decision stating omission or sufferance becomes enforceable when it becomes final, if not stipulated otherwise therein.
Enforceability of administrative decision is assessed according to the rules of administrative procedure, and enforceability of a notary public document that has the power of the enforcement document – according to the law regulating public notary services.
Decision on execution is also rendered when the judicial decision has not become final, or when administrative decision has not become final, if the law stipulates that an appeal or other legal remedy shall not stay their enforcement.
Certificate of Enforceability of Decision
Certificate of enforceability establishes that the decision has become enforceable.
At the motion of a party, this certificate is issued by the court or other organ that issued an enforcement document in the first instance or a notary public by affixing the certificate to enforcement document.
Unfounded certificate of enforceability is repealed by a decision of the decree of the issuing court or other organ, or notary public at the motion of a party or ex officio.
Enforceability of Court and Administrative Settlement and Notary Public Settlement Record
Court and administrative settlement, and notary public record on settlement become enforceable upon maturity of the claim stated in the settlement.
The maturity of the claim is proved by the settlement record or by an official or a legally certified document. Provisions regulating enforceability of a judicial and administrative decision shall apply to the enforceability of settlement.
Enforcement of a Foreign Enforcement Document
A foreign enforcement document is enforced in the same manner as a domestic enforcement document, if it is indicating a private legal claim and is recognized by a domestic court.
Enforcement creditor may file a motion for enforcement of a foreign enforcement document that has not been recognized by domestic court. In this case, the court with the jurisdiction to render the decision of execution also decides on recognition of a foreign enforcement document as a preliminary issue. Such decision of execution may be contested by appeal also due to noncompliance with legal requirements for recognition of a foreign enforcement document.
Suitability of Enforcement Document for Rendering the Decision of Execution
Enforcement document is suitable for rendering the decision of execution if it contains the information on the enforcement creditor, the enforcement debtor, the subject of the enforcement, the type and scope of fulfillment of the obligation.
If the enforcement document does not state a time period for voluntary compliance, it amounts to eight days from the delivery of the enforcement document to the enforcement debtor. If the maturity of a claim cannot be established from an extract from the Pledge Register, the enforcement creditor provides a written proof that he granted additional time period to the enforcement debtor for fulfillment of the obligation.
The decision of execution may be rendered when only a part of a judicial or administrative decision, or a settlement, or a notary public document has become enforceable, in relation to that part.
Types of Credible Documents
The decision on execution based on a credible document is rendered for settlement of a monetary claim.
The following are credible documents:
- Promissory note or check issued by a domestic or foreign entity, with protest if necessary for establishment of the claim
- Extract from the Central Securities Depository of the balance of the account of the legal holder of bonds or money market instruments (treasury bills, treasury bonds and commercial papers) and the decision on their issue
- Invoice (bill) issued by a domestic or foreign entity, accompanied by bill of lading or other written proof that the enforcement debtor was notified of the obligation created
- Extract from company ledger as proof of the provision of utility or similar services
- Calculation or extract from company ledger regarding public media service tax claims
- Official document constituting an enforceable monetary obligation
- Bank guarantee
- Letter of credit
- Certified statement of the enforcement debtor authorizing the bank to transfer funds from his account into the account of the enforcement creditor
- Calculation of interest with proof of basis for maturity and the amount of claim
- Interim or final payment certificates with respect to construction works completed
- Calculation of the amount of fee and reimbursement of an attorney.
Suitability of Credible Document for Rendering Decision on Execution Based on Credible Document
A credible document is suitable for rendering the decision on execution based on credible document if it contains information on the enforcement creditor, the enforcement debtor, and the subject, type, scope and maturity of the enforcement debtor’s obligation.
If the maturity of an obligation cannot be established from the credible document, the enforcement creditor shall enclose with the credible document a written proof that he granted the enforcement debtor additional period for fulfillment of the obligation.