Law No. 190 Of 9 December 1999 On Mortgage Loans For Real Estate Investment

Original Language Title:  LEGE nr. 190 din 9 decembrie 1999 privind creditul ipotecar pentru investiţii imobiliare

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Law No. 190 of 9 December 1999 (* updated *) on mortgage loans for property investment (updated on 3 March 2016) ISSUER-PARLIAMENT------Parliament adopts this law.


Chapter I mortgage loans for investment properties. Definitions — — — — — — — — — — — — the title Head. I was changed by section 1 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 1 (1) this Act regulates the legal status of the mortgage for real estate investments.
  

(2) real estate investment mortgage loans can be granted exclusively by authorized institutions in compliance with the terms of this law and special laws for the formation and operation of them.
  

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Art. 1 was amended by section 1 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 2 for the purposes of this Act, the words and expressions below have the following meanings: (a) the assignment of mortgage receivables)-operation of financial investments that may relate to the transfer of individual mortgage receivables or receivables portfolios of mortgage-backed securities;
  

b) claims mortgage bonds-rights arising out of contracts of mortgage loan for investment property;
  

c) mortgage loan for investment property-loan granted on fulfilment of the following conditions are cumulative: 1. shall be granted for the purposes of investment property with housing or with another destination than the housing or in the order of repayment of a mortgage for investment properties previously contracted;
2. the granting of the loan is at least guaranteed mortgage of the property subject to the real estate investment fund which the grantor, or mortgage of the real estate investment real estate object for which financing was previously granted a mortgage loan for investment property, whose reimbursement is to be financed;

d) mortgage lender mortgage-holder claims;
  

e-construction and real estate) and/or the land on which they are located or to erect a building, which is subject to an investment property;
  

(f) the authorized institution)-universal banks and mortgage banks, the National Agency for Dwellings, mortgage companies and other entities governed by special laws to grant mortgages for investment properties;
  

g) investment property-investments aimed at the acquisition of ownership of a property through legal documents against payment, arranging a building, site preparation, rehabilitation, strengthening or expanding it, but are not limited to these.
  

h) the total cost of the credit to the borrower-all costs, including interest, commissions, taxes and any other costs to be borne by the borrower in connection with the credit agreement and which are known to the creditor, except for notarial; the costs for the services of a credit contract related accessories, in particular insurance premiums, are also included, where getting credit or getting it according to the terms and conditions presented is subject to conclusion of a contract for services;
  

— — — — — — — — — — — the letter h) of art. 2 was amended by section 1 of article. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.

(I) the total amount payable) borrowed the sum of total amount of credit and total cost of credit to the borrower;
  

— — — — — — — — — — — the letter i) art. 2 was amended by section 1 of article. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.

j) the total amount of the loan-roof or amounts made available under a credit agreement.
  

— — — — — — — — — — — the letter j) of art. 2 was introduced by section 1 of article. IV of the EMERGENCY ORDINANCE nr. 174 of 19 November 2008, published in MONITORUL OFICIAL nr. 795 of 27 November 2008.
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Art. 2 was amended by section 1 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Chapter I ^ 1 Guaranteeing the mortgage for real estate investment — — — — — — — — — — —-head. ^ 1 was introduced by section 2 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 3 (1) Mortgage guarantee made available to real estate mortgage real estate investment lasts until the full repayment of all sums due under the said contract of mortgage.
  

— — — — — — — — — —-. (1) of article 1. 3 was amended by section 1 of article. 196 of the law nr. 71 in June 2011, published in MONITORUL OFICIAL nr. 409 of 10 June 2011.

(2) if the parties so agree, through act in authentic form mortgage can be transferred to a different building. Mortgage of the real estate law ceases to originally date of entry of new mortgages.
  

(3) in the case referred to in paragraph 1. (2) the mortgage transferred to rank the new building will be determined by the date of entry of new mortgages in the land.
  

(4) the provisions of this Act shall remain applicable under the conditions of paragraph 1 shall be transferred to the mortgage. (2), as well as guaranteed with this mortgage loan.
  

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Art. 3 was amended by paragraph 2 of article 9. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 3 ^ 1 (1) article. 2,380 of the civil code does not apply to real estate foreclosures constituted for guaranteeing mortgage loans for real estate investments granted under this law.
  

— — — — — — — — — —-. (1) of article 1. 3 ^ 1 was amended by paragraph 2 of article 9. 196 of the law nr. 71 in June 2011, published in MONITORUL OFICIAL nr. 409 of 10 June 2011.

(2) the mortgage established under the present law to a good future in the land intabulează if the permission has been noted.
  

(3) a mortgage on a Rank building future will be determined by the time of its inclusion in the land.
  

(4) if the mortgage is only constitute construction, and not on the land plot in existence of a right of superficies constituted the subject of mortgage is that a right of superficies, i.e. the ownership of the building, as well as the right of use of land on which is located the construction.
  

(5) subject to the existing mortgage and servituţile on the property mortgaged.
  

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Art. 3 ^ 1 was introduced by section 2 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 4 Repealed.
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Art. 4 was repealed by section 3 of article 9. 196 of the law nr. 71 in June 2011, published in MONITORUL OFICIAL nr. 409 of 10 June 2011.


Article 5 (1) until the repayment in full of the mortgage loan for investment property, mortgaged property may be disposed of only with the prior consent in writing of the mortgage lender. This agreement shall be required in connection with each sale.
  

(2) the acts of non-compliance with paragraph 1. (1) are hit by absolute nullity.
  

(3) the inclusion of mortgage related a mortgage for investment property, land register Office is obliged ex officio to note the ban of disposal referred to in paragraph 1. (1).
  

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Art. 5 was amended by paragraph 2 of article 9. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Chapter II Be Repealed.
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Cap. (II) was repealed by section 3 of article 9. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 6 Repealed.
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Art. 6 it was repealed by section 3 of article 9. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 7 Repealed.
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Art. 7 was repealed by section 3 of article 9. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Chapter III contract for mortgage for real estate investment and insurance contract — — — — — — — — — — — — the title Head. III has been modified by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Section 1 the contract of mortgage-borrowers protection clauses binding contract of mortgage loan for investment property-binding clauses for the protection of borrowers — — — — — — — — — — —-the title of section 1. III has been modified by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 8 at the request of an offer of credit, approved institution is obliged to provide free borrower, on paper or on another durable medium, a repayment schedule and a copy of the draft credit agreement.
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Art. 8 was amended by paragraph 2 of article 9. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.


Article 9 (1) mortgage Contract shall contain the following compulsory information on the costs incurred by the borrower: — — — — — — — — — — — the introductory part of paragraph 1. (1) of article 1. 9, Cap. XI was amended by section 3 of article 9. 92 from EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.

the total amount of the credit);
  


b) credit interest rate, fixed and/or variable, together with information on any costs that are included in the total cost of the credit to the borrower;
  

— — — — — — — — — — — b) of paragraph 2. (1) of article 1. 9 was amended by section 3 of article 9. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.

c) total cost of credit;
  

(d) the duration of the credit agreement);
  

e total payable amount) loan;
  

— — — — — — — — — —-e) of paragraph 1. (1) of article 1. 9 was amended by section 3 of article 9. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.

f) costs of insurance contract, in cases where, for the provision of the loan, the borrower is obliged to enter into a contract of insurance.
  

— — — — — — — — — — — the letter f) of paragraph 1. (1) of article 1. 9 was amended by section 3 of article 9. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.

(2) the contract of mortgage loan for investment property will not be able to be modified only in writing by the parties, by means of amendments.
  

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Art. 9 was amended by section 3 of article 9. IV of the EMERGENCY ORDINANCE nr. 174 of 19 November 2008, published in MONITORUL OFICIAL nr. 795 of 27 November 2008.


Article 10 (1) the amount of the credit granted can be expressed in the contract of mortgage loan for investment property in MDL or in convertible currency and will be made available to a borrower was scheduled times.
  

(2) where the work for which it has been granted mortgage loans for real estate investments will be made in its own purposes by the borrowers, the money will make them according to a funding plan established by contract.
  

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Art. 10 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 11) shall be prohibited to grant mortgages for investment properties subject to acceptance by the customer of the other services that are not related to the operation of the respective credit or the sale or purchase of securities issued by the authorized institution granting credit.
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Art. 11 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 12 *) for which payment is ahead of schedule, as well as cases in which they are to be applicable to these clauses shall be laid down in the contract of mortgage for real estate investments into a separate article.
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Art. 12 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 13 (1) shall be entitled to Borrowers repay in advance loan received in conditions set by the parties in the contract of mortgage loan for investment property.
  

(2) In the event of bankruptcy, voluntary winding up of the mortgage lender or in other cases of winding-up proceedings as provided by law, borrowers have the right to repay the mortgage loans in advance received for investment property).
  

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Art. 13 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 14 where the contract of mortgage loan for investment property has been determined as the rate of interest to be variable, the following rules shall apply: (a)) interest rate variation must be independent of the will of the mortgage lender, reported to the fluctuations in some verifiable reference, referred to in the contract, or from legislative changes which require this;
  

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Lit. the article) 14 was amended by paragraph 4 of art. IV of the EMERGENCY ORDINANCE nr. 174 of 19 November 2008, published in MONITORUL OFICIAL nr. 795 of 27 November 2008.

b) contract may provide that the interest rate does not change unless the change in meaning ascending or descending record versus the initial interest rate, minimal difference;
  

c) repealed;
  

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Lit. c) art. 14 was repealed by section 5 of art. IV of the EMERGENCY ORDINANCE nr. 174 of 19 November 2008, published in MONITORUL OFICIAL nr. 795 of 27 November 2008.
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Art. 14 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 15 shall be borne by the borrower put only the expenses related to preparation of credit documentation and the establishment of the mortgage and related securities. The mortgage lender is required to insert the contents of the credit contract clauses whereby the borrower to bring to the attention of all the guarantees which meant to conclude in the name and on behalf of the borrower, as well as conditions of employment.
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Art. 15 has been amended by section 6 of article. IV of the EMERGENCY ORDINANCE nr. 174 of 19 November 2008, published in MONITORUL OFICIAL nr. 795 of 27 November 2008.


Section 2 of the compulsory insurance Contracts insurance contracts binding — — — — — — — — — — —-the title of section 2 of the Head. III has been modified by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 16 (1) in the case of ipotecării construction, the borrower shall conclude an insurance policy covering all risks thereof. The insurance contract will be concluded and renewed so as to cover the entire period of validity of the credit.
  

(2) the insured's Rights deriving from the insurance contract provided for in paragraph 1. (1) will be transferred in favour of lender mortgage throughout the period of validity of the contract of mortgage loan for investment property.
  

(3) the assignment may be relied on against third parties, except in the case of the insurer, is made by its inclusion in an electronic Archive of Movable Warranties, at the expense of the insured person.
  

(4) the validity of an assignment against the insurer shall be made by notification by letter with acknowledgement of receipt or through judicial officers of the Bank times.
  

(5) the compensation received by the lender mortgage will result in the extinction of the claim in the following order: interest due and unpaid capital borrowed, the amount of credit remaining rates payable, other amounts owed by the borrower to the lender mortgage receipt of compensation, based on the credit agreement.
  

(6) insurance premiums will be paid by the borrower, the mortgage lender it to present proof of payment thereof, to the dates agreed in the contract of mortgage loan for investment property.
  

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Art. 16 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 17 where through mortgage loans for real estate investment is financed the construction, rehabilitation, strengthening, expanding mortgage of immovable property, the lender may require the borrower to enter into an insurance contract for foreign real estate investment nefinalizării for which credit has been granted. The insured rights deriving from the insurance contract provided for above will be assigned in favour of mortgage lender.
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Art. 17 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 18 *) insurance contracts referred to in article 1. 16 and 17 shall conclude with an insurance company, and the lender will not have the right to require the borrower a particular insurer.
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Art. 18 was amended by paragraph 4 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Chapter IV Enforcement institutions that granted claims mortgages for real estate investment — — — — — — — — — — — — the title Head. IV was amended by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 19 *) (1) In case of delay in payment, the mortgage lender, the borrower will be sent to the last address communicated by the latter, a notification by registered letter with acknowledgement of receipt or by bailiff times, warning him Bank over the consequences of a breach of the contract of mortgage loan for investment property.
  

(2) in the case of notification by registered letter, it shall be deemed to have been received on the date of mailing indicated on the acknowledgement of receipt.
  

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Art. 19 was amended by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 20 where, within 30 days from the date of receipt of the notification referred to in article 1. 19, the borrower does not implement the obligations to which it has been notified, the contract of mortgage loan for investment property shall be considered terminated and the entire amount as full credit, with interest from the date of termination of the operation, become payable.
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Art. 20 was amended by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 21 the contract of mortgage loan for investment property, such as real and personal guarantees and consequential constitute enforceable, to be entrusted with appended by the Court of the place where the property is situated.
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Art. 21 was amended by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 22


(1) enforcement of payment obligations of borrowers will be done without conditioning assignment of another living space.
  

(2) in exceptional circumstances, the Court reasoned as such at the place of execution will be able to grant a maximum of 90 days within which the debtor will be able to seek another home. This provision applies only to borrowers who are natural persons.
  

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Art. 22 was amended by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 23 enforcement of mortgage claims will be made by authorised institutions ' own executors or bailiffs, as appropriate, in accordance with the law.
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Art. 23 was amended by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 23 ^ 1 Art. 19 and 20 do not apply where the claim on mortgage become payable under art. 12 in cases in which payment is ahead of schedule, due to other causes than the delay in payment.
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Art. 23 ^ 1 was introduced by section 5 of art. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Chapter V Chapter V Repealed Repealed.
— — — — — — — — — — — — Chapter V has been repealed by lit. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Article 24 Repealed.
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Art. 24 was repealed by lit. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Article 25 Repealed.
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Art. 25 was repealed by lit. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Article 26 Repealed.
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Art. 26 c was repealed. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Article 27 Repealed.
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Art. 27 was repealed by lit. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Article 28 Repealed.
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Art. 28 was repealed by lit. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Article 28 ^ 1 Repealed.
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Art. 28 ^ 1 was repealed by lit. b) of paragraph 2. (2) of article 9. 60 of law No. 304 of 27 November 2015, published in MONITORUL OFICIAL nr. 902 of 4 December 2015.


Chapter VI Repealed.
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Cap. (VI) has been repealed by point 7 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 29 Repealed.
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Art. 29 was repealed by point 7 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 30(1) Repealed.
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Art. 30 was repealed by point 7 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 31 Repealed.
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Art. 31 was repealed by point 7 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 32 Repealed.
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Art. 32 was repealed by point 7 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Chapter VII final provisions — — — — — — — — — — — — the title Head. VII was amended by section 8 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 33 authorized Institutions are subject to supervision and control institutions empowered by law.
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Art. 33 was amended by section 8 of article. 1 of law No. 34 of 1 March 2006, published in MONITORUL OFICIAL nr. 200 from 3 March 2006.


Article 33 ^ 1 (1) failure to comply with the provisions of art. 11, 12, art. 13(2). (2), art. 18 and 19 shall be imposed constitutes contravention and fine from 5,000 to 50,000 lei lei.
  

(2) the finding of violations and penalties referred to in paragraph 1. (1) shall be made by the representatives of the National Authority empowered you to consumer protection, where the contract is concluded with a consumer as defined in Ordinance No. 21/1992 on consumer protection, republished, with subsequent amendments and additions.

(3) if the credit agreement is concluded with a legal person, the persons concerned may apply to the Court.
  

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Art. 33 ^ 1 was amended by paragraph 4 of art. 92, Cap. The EMERGENCY ORDINANCE nr. 50 of 9 June 2010, published in MONITORUL OFICIAL nr. 389 of 11 June 2010.


The provisions of article 34 of this law shall be supplemented by the provisions of Ordinance No. 2/2001 on the legal regime of contraventions, approved with amendments and completions by law No. 180/2002, as amended and supplemented, of the Government Emergency Ordinance nr. 99/2006 concerning credit institutions and capital adequacy, approved with amendments and completions by law No. 227/2006, as amended and supplemented, of Ordinance No. 21/1992 on consumer protection, republished, with subsequent amendments and additions, the law No. 193/2000 relating to unfair terms in contracts concluded between traders and consumers, republished, with subsequent amendments of the law. 363/2007 on combating unfair practices of merchants in relation to consumers and to harmonize regulations with Community law on consumer protection, as amended, of the criminal code and the civil code, to the extent that this law contains no provisions to the contrary.
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Art. 34 was amended by paragraph 4 of art. 196 of the law nr. 71 in June 2011, published in MONITORUL OFICIAL nr. 409 of 10 June 2011.

This law was adopted by the Senate at its meeting on 15 November 1999, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.

p. PRESIDENT of the SENATE, DANIELS T this law was adopted by the Chamber of deputies at its meeting on November 16, 1999, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.

p. CHAMBER of DEPUTIES PRESIDENT, YONATAN GA — — — — — — — — —