Types of Security for Bank Loans

Which are the joint trigger mechanisms for credit, guarantee and security document enforcements? Normally, this can be the omission of payment on time if the debtor is subjected to execution proceedings against one of his property, default and so on. Borrowers must relinquish their right during the life of the credit so that the creditor can assert the security in law; such relinquishments can be found in almost all trade agreements.

If enforcement is the appropriate course of actions, the stages differ according to the nature of the securities, but all include: notification of the borrower by a bailiff's file (a file transmitted by a bailiff) alerting of the presence of an instance of delay; selling the property at a competitive tender; in the absence of third parties, the lender receives the entire value of the property in full as repayment of the liability.

Underwriting of secured property, which allows a lender to take a controlling interest in it without going through a procedure, is forbidden under dominant legislation. Holders can obtain an offer for the asset or ask the trial court for an assignment of the asset in the amount of the liability.

Act 189-11 introduced an expedited enforcement procedure for mortgage loans provided to cover a bank credit. What is the order in which a creditor ranks in the event of a borrower's bankruptcy? Loans arising after the opening of bankruptcy procedures, if authorised by the courts, have a higher precedence over all other guaranteed and uncollateralised receivables that do not originate from the revenue office, workers or bankruptcy procedures.

employment obligations if they have not been submitted in accordance with the Labor Code or other legislation on workers' welfare or wellbeing. Expenditure incurred as a result of the reorganization procedure, in particular the charges of participating civil servants and auxiliary staff. Loans authorised by the courts and provided by intermediaries or third persons to finance the borrower.

Loans from major and publicly owned contractors or vendors that have been properly authorized by the courts. Debt arising from the performance of agreements which shall continue to be in effect after the start of the reorganization procedure if they are authorized by the courts and the corresponding lender consents to deferral. Miscellaneous payables according to their seniority (secured loans will predominate).