This means that from now on, in those cases in which such documents are considered as enforceable titles, it is necessary to register them in public records such as Trade Register, Electronic Archive for Security Interests in Movable Property, Land Book Register, etc. For example, a legal assistance agreement that the lawyer concludes with his clients and that law recognizes as having the character of enforceability, but starting today it is mandatory to register this agreement in a public record in order to request his execution. This is also applicable to free-lease agreements, pledge or mortgage agreements.
On the other hand, these amendments are not applicable to rental agreements which were mandatory to be registered at the fiscal authorities, in order to become enforceable titles. So, in respect to these agreements nothing has changed.
Now, taking into consideration this new changes what will happen with the credit agreements? Bank representatives are saying that these amendments are not applicable to bank sector, mentioning the provisions of art. 120 of Govern Ordinance 99/2006. If you’ll ask a lawyer he will tell you that these credit agreements are not registered in any public record, therefore are no longer enforceable titles. In this case, we must make a difference between credit agreements and mortgage agreements of movable or real estate which are registered in the Electronic Archive for Security Interests in Movable Property, respectively in the Land Book Register.
The provisions of Law 17/2017 are applicable for future foreclosure or ongoing including the existing contracts.
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If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or: