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Law on Enforcement and Securing of Claims

The Law on Enforcement and Securing of Claims (“Official Herald of RS”, No. 106/2015, the “Law”) was enacted by the Serbian National Assembly on December 18, 2015. It provides for a 6-month vacatio legis period i.e. the Law will become effective on July 1, 2016 to afford all participants in enforcement proceeding an opportunity to get acquainted with the Law, its provisions and novelties.

A petition for enforcement shall be submitted to the court of competent jurisdiction; if, however, the subject matter of enforcement is related to non-payment of public utility services, public bailiffs are solely competent to render decisions on enforcement.

Regarding the enforcement procedure, the Law brings crucial novelties compared to the current legal solutions. Creditors can no longer decide whether to entrust certain enforcement proceeding to the court or to a public bailiff. The competence of these two is quite clearly delineated. Courts are exclusively competent for enforcement proceedings related to the joint sale of immovable and movable property, performance of a specific act or forbearance, family related issues, and reinstatement of employees to work. After July 1, 2016, all other enforcement proceedings shall be under exclusive competence of public bailiffs.

The Law explicitly provides that enforcement and securing of claims proceedings are urgent matter, and that the right of parties to receive a decision within the reasonable time must be observed.

Creditors that have mortgages inscribed on debtor’s immovable property based on mortgage statements/agreements, which is deemed a writ of execution, can decide whether they want their claim to be discharged in accordance with provisions of the law which regulates mortgages, or the Law on Enforcement and Securing of Claims.

Securing of claims still includes pledge of movable and immovable property, preliminary measures and conservatory measures. All currently pending enforcement proceedings, and all enforcement proceedings initiated before July 1, 2016, shall be governed by the current law. Creditors that have their decision on enforcement rendered before the introduction of public bailiffs to the Serbian legal system, and whose enforcement proceedings are still pending, are left with a period from May 1 until July 1, 2016 to choose whether they want their decision on enforcement to be implemented by the court or by a public bailiff. Unless they make such selection, their proceedings will be discontinued!

The Law regulates, in detail, different enforcement proceedings, including enforcement on immovable/movable property, funds, salaries, claims, labor and family related issues, division of things, shares of stock, etc.

For more information regarding this Law please contact us at OFFICE@PRICAPARTNERS.COM.


Mihajlo Prica

Tijana Lalić