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ENFORCEMENT INSCRIPTION ON A CREDIT AGREEMENT DURING THE PERIOD OF MARTIAL LAW

On August 5, 2022, Law No. 2455-IX dated July 27, 2022 «On Amendments to Certain Laws of Ukraine Regarding the Activities of Private Executors and Enforcement of Court Decisions, Decisions of Other Bodies (Officials) During the Period of Martial Law» (hereinafter – Law 2455) entered into force.

This Law 2455 prohibits for the period of martial law the enforcement of decisions, in particular, notary writs, including ones made on credit agreements.

The aforementioned amendments to Law 2455 did stop the commencement of new enforcement proceedings, however, the list of debtors under active enforcement proceedings remain in the Unified Register of Debtors, as Law 2455 did not provide for the obligation of private and public executors to terminate such enforcement proceedings.

Enforcement proceedings remain open, but execution of these proceedings was suspended during martial law.

On April 11, 2023, the Verkhovna Rada adopted Law of Ukraine No. 3048-IX «On Amendments to Certain Laws of Ukraine Regarding Certain Features of the Organization of Enforcement of Court Decisions and Decisions of Other Bodies During Martial Law», which entered into force on May 6, 2023 (hereinafter - the Law 3048).

The adopted Law 3048 settled a number of issues related to the enforcement of decisions during the period of martial law in Ukraine, in particular, the issue of enforcement inscriptions, including ones made on credit agreements.

Subparagraph 3 of paragraph 2 of Law 3048 set forth paragraph 10-2 of Chapter XIII «Final and Transitional Provisions» of the Law «On Enforcement Proceedings» in a new edition. Thus, according to paragraph 24, it is prohibited to open enforcement proceedings on the basis of a notary writ executed on credit agreements that are not notarized.

In other words, the commencement of new executive proceedings on the basis of notary writs executed on non-notarial credit agreements is strictly prohibited.

However, it is worth noting that the new wording of Clause 10-2 of Chapter XIII «Final and Transitional Provisions» of the Law of Ukraine «On Enforcement Proceedings» does not provide for the prohibition of enforcement inscriptions by a notary (except for the commencement of enforcement proceedings on the basis of notary wits made on non-notarial credit agreements).

The above-mentioned changes to the legislation allow state and private executors to execute the following enforcement inscriptions:

- made on notarized pledge contracts, mortgage agreements, regardless of the time of their

execution;

- made on the claim of the subject of the contract (object) of financial leasing executed on

financial leasing contracts, regardless of the time of their execution;

- executed before the introduction of martial law in Ukraine by Decree of the President of

Ukraine No. 64/2022 of 24.02.2022 «On the introduction of martial law in Ukraine»;

- made on non-notarial credit agreements, which allows private and state executors to «complete» already commenced executive proceedings.

Today, private and state executors are actively working on the implementation of open executive proceedings based on notary writs made on non-notarial credit agreements before the introduction of martial law in Ukraine.

SELECTIUM’s team of lawyers will provide quality services for appealing of a notary writ in court.








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