Creditors, Pay Attention to Article 547 of the New Law on Enforcement!

15
Jan 2016

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The new Law on Enforcement and Security (Official Gazette of the Republic of Serbia, No.106/2015) will enter into force on 1st July of 2016, except for Article 547, and some other provisions which have entered into force earlier.

Article 547 establishes an obligation for enforcement creditors in whose favor an enforcement decision or a decision on collateral security was issued during the time before private enforcement officers started operating in Serbia, and to the extent that such creditor had ongoing enforcement proceedings as of 1st May 2016, to deliver a statement to the court as to whether they wish for the court or a public enforcement officer to carry out the relevant enforcement.

If the creditor fails to provide such a statement to the court within the prescribed deadline, then the enforcement proceedings will be dismissed.

The interpretation of this article appeared several dilemmas and questions, which could cause problems in court practice:

  • The enforcement creditors who declared that the procedure will be carried out by the court, or a public enforcement officer, in the proposal for enforcement decision, need to declare the same thing again?

The statement is necessary in those proceedings that have begun before enforcement officer  started operating in Serbia . However creditors should be careful, because enforcement officers have not started operating at the same time in all areas of Serbia (for example in area of Novi Sad enforcement officers started operating on 1st June of 2012). So, in all enforcement proceedings which started before 1st June of 2012 in the area of Novi Sad, the enforcement creditors need to send a statement in the period from 1st May of 2016 to 1st July of 2016 in which they decide whether the relevant enforcement will be carried out by the court or a public enforcement officer, under threat that the enforcement will be dismissed.

  • The enforcement creditors who declared that the procedure will be carried out by the court, or a public enforcement officer, in the proposal for enforcement decision, need to declare the same thing again?

Court will not consider the statements sent before 1st May of 2016 and court will discard that statement as premature. The law expressly provides within which period it is necessary to submit a statement and only those submissions sent in the period from 1st May of 2016 to 1st July of 2016 shall be considered as timely.

  • Will the court send invitation to the enforcement creditor to submit the statement in accordance with Art. 547 The Law on Enforcement and Security?

The court do not have an obligation to send invitation to the enforcement creditor to submit the statement in accordance with Art. 547 of The Law on Enforcement and Security. The Law on Enforcement and Security provide this obligation for enforcement creditors.

In addition, it should be noted that the enforcement creditor is obliged to pay only half of the advance certain public enforcement officer tariff, if he declare in his statement that the public enforcement officer will carry out the relevant enforcement.

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