LEGE no. 190 190 of 9 December 1999 (* updated *) on mortgage credit for real estate investments ((updated on 3 March 2016 *)
ISSUER
PARLIAMENT
---------- The Romanian Parliament adopts this law + Chapter I Mortgage loan for real estate investments. Definitions ------------ Title Cap. I was amended by section 6.6. 1 1 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 1 (1) This law regulates the legal regime of mortgage credit for real estate investments. ... (2) The mortgage loan for real estate investments may be granted exclusively by authorized institutions, in compliance with the conditions of this law and of the special laws of their constitution and functioning. ... ------------ Article 1 has been amended by section 1. 1 1 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 2 Within the meaning of the present law, the following terms and expressions have the following meanings: a) assignment of mortgage receivables-the financial investment operation that may have as its object the transfer of individual mortgages or mortgage debt portfolios; ... b) mortgage receivables-debt entitlements resulting from mortgage credit agreements for real estate investments; ... c) mortgage loan for real estate investments-credit granted with cumulative fulfillment of the following conditions: ... 1. is granted for the purpose of making real estate investments with a housing destination or with a destination other than the dwelling place or for the purpose of repayment of a mortgage loan for previously contracted real estate investments; 2. the granting of the loan is guaranteed at least with the mortgage on the property that is the subject of the real estate investment for the financing of which the credit is granted, respectively with the mortgage on the property to which a mortgage loan was previously granted for real estate investments, the repayment of which is thus to be financed; d) mortgage lender-holder of mortgage receivables; ... e) the building-construction and/or land on which a construction is located or is to be erected, which are the subject of a real estate investment; ... f) authorized institutions-universal banks and mortgage banks, the National Housing Agency, mortgage companies and any other entities regulated by special laws to grant mortgages for real estate investments; ... g) real estate investments-investments having as object the acquisition of ownership of a building by legal acts for consideration, arrangement of a building, viability, rehabilitation, consolidation or extension thereof, but without the limit to these. ... h) the total cost of the loan for the borrower-all costs, including interest, commissions, taxes and any other type of costs that the borrower must bear in connection with the credit agreement and which are known by the creditor, except notary fees; costs for ancillary services related to the credit agreement, in particular insurance premiums, are also included if obtaining the credit or obtaining it according to the clauses and the conditions presented are conditional upon the conclusion of a service contract; ... ----------- Letter h) of art. 2 2 has been amended by section 4.2 1 1 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. i) the total amount payable by the borrower-the sum of the total amount of the loan and the total cost of the loan ... ----------- Letter i) of art. 2 2 has been amended by section 4.2 1 1 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. j) the total amount of the credit-the total ceiling or amounts made available under a credit agreement. ... ----------- Letter j) of art. 2 2 was introduced by section 4.2. 1 1 of art. IV of EMERGENCY ORDINANCE no. 174 174 of 19 November 2008 , published in MONITORUL OFFICIAL no. 795 795 of 27 November 2008. ------------ Article 2 has been amended by section 2. 1 1 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Chapter I ^ 1 Guaranteeing mortgage loan for real estate investments ------------ Head. I ^ 1 was introduced by section 1. 2 2 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 3 (1) The real estate mortgage constituted to guarantee the mortgage loan for real estate investments shall last until the full repayment of all the amounts due under the respective mortgage credit agreement. ... ----------- Alin. ((1) of art. 3 3 has been amended by section 1 1 of art. 196 of LAW no. 71 71 of 3 June 2011 , published in MONITORUL OFFICIAL no. 409 409 of 10 June 2011. (2) If the parties so agree, by act in authentic form the mortgage will be able to be transferred to another building. Mortgage on the original property ceases by right on the date of registration of the new mortgage. ... (3) In the case provided in par. (2), the mortgage rank transferred to the new building will be determined by the date of registration of the new mortgage in the land book. ... (4) The provisions of this Law remain applicable to the mortgage transferred under the conditions of (2), as well as the credit guaranteed with this mortgage. ... ------------ Article 3 has been amended by section 3. 2 2 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 3 ^ 1 (1) The provisions of art. 2.380 of the Civil Code does not apply to real estate mortgages constituted for the guarantee of mortgage loans for real estate investments granted under the present law. ... ----------- Alin. ((1) of art. 3 ^ 1 has been amended by section 4.2 2 2 of art. 196 of LAW no. 71 71 of 3 June 2011 , published in MONITORUL OFFICIAL no. 409 409 of 10 June 2011. (2) The mortgage constituted under the terms of the present law on a future good shall be filed in the land register if, in advance, the building permit was noted. ... (3) The rank of a mortgage on a future construction will be determined by the time of its enrolment in the land book. ... (4) If the mortgage is constituted only on the construction, and not on the land related to it, under the conditions of existence of a right of legal superficie constituted, the object of the mortgage is the right of superficie, namely the right of ownership of the construction as well as the right to use the land on which the construction is located. ... (5) The mortgage object also includes existing servituseful on the mortgaged property. ... ------------ Art. 3 ^ 1 was introduced by item 1. 2 2 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 4 Repealed. ----------- Article 4 has been repealed by point (a). 3 3 of art. 196 of LAW no. 71 71 of 3 June 2011 , published in MONITORUL OFFICIAL no. 409 409 of 10 June 2011. + Article 5 (1) Until the full repayment of the mortgage loan for real estate investments, the mortgaged property will be disposed of only with the prior written consent of the mortgage lender. This agreement will be required in relation to each determined estrangement. ... ((2) Acts concluded with non-compliance with paragraph 1. (1) are hit by absolute nullity. ... (3) When registering the mortgage related to a mortgage loan for real estate investments, the Land Registry Office has the obligation to note ex officio the prohibition of alienation provided in par. ((1). ... ------------ Article 5 has been amended by section 6.6. 2 2 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Chapter II Repealed. ------------ Head. II has been repealed by section 6.6. 3 3 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 6 Repealed. ------------ Article 6 was repealed by point (a). 3 3 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 7 Repealed. ------------ Article 7 was repealed by point (a). 3 3 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Chapter III Mortgage loan agreement for real estate investments and insurance contract ------------ Title Cap. III has been amended by section 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Section 1 Mortgage loan agreement-mandatory clauses for the protection of borrowers Mortgage loan agreement for real estate investments-mandatory clauses for the protection of borrowers ------------ Title of Section 1 of the Head. III has been amended by section 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 8 At the request of a credit offer, the authorized institution has the obligation to provide free of charge to the borrower, on paper or on another durable medium, a repayment schedule and a copy of the draft credit agreement. ----------- Article 8 has been amended by section 6.6. 2 2 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. + Article 9 (1) The mortgage loan agreement will also include the following information on the costs incurred by the borrower: ... ----------- The introductory part of para. ((1) of art. 9, Cap. XI has been amended by section 3 3 of art. 92 of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. a) the total amount of credit; ... b) the interest rate on credit, fixed and/or variable, together with information on any costs included in the total cost of the loan for the borrower; ... ----------- Point b) of par. ((1) of art. 9 9 has been amended by section 4.2 3 3 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. c) the total cost of credit; ... d) duration of the credit agreement; ... e) the total amount payable by the borrower; ... ----------- Letter e) a par. ((1) of art. 9 9 has been amended by section 4.2 3 3 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. f) the costs related to the insurance contract, in cases where, for the granting of the loan, the borrower is obliged to enter into an insurance contract. ... ----------- Letter f) a par. ((1) of art. 9 9 has been amended by section 4.2 3 3 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. (2) The mortgage loan agreement for real estate investments will only be modified in writing by the parties, by concluding additional acts. ... ----------- Article 9 has been amended by section 6.6. 3 3 of art. IV of EMERGENCY ORDINANCE no. 174 174 of 19 November 2008 , published in MONITORUL OFFICIAL no. 795 795 of 27 November 2008. + Article 10 (1) The amount of the loan granted may be expressed in the mortgage loan contract for real estate investments in lei or in convertible currency and will be made available to the borrower staggered or in full. ... (2) If the works for which the mortgage loan was granted for real estate investments will be made in its own direction by the borrowers, the amounts of money will be made redundant according to a financing plan established by contract. ... ------------ Article 10 has been amended by section 10. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 11 *) It is forbidden to provide mortgage loans for real estate investments conditional on the acceptance by the customer of other services not related to the respective lending operation or the sale or purchase of securities issued by the authorised institution granting the credit. ------------ Article 11 has been amended by section 1. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 12 *) The terms of chargeability before the deadline, as well as the cases in which these clauses are to be applicable must be provided for in the mortgage loan contract for real estate investments in a separate article. ------------ Article 12 has been amended by section 4.2. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 13 (1) The borrowers have the right to repay in advance the credit received, under the conditions set by the parties by the mortgage loan agreement for real estate investments. ... (2) In the event of bankruptcy, voluntary liquidation of the mortgage lender or in other liquidation cases provided by law, borrowers have the right to repay the anticipated mortgage loan received for real estate investments *). ... ------------ Article 13 has been amended by section 1. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 14 If the mortgage loan agreement for real estate investments has been established that the interest rate will be variable, the following rules will apply: a) the change in the interest rate must be independent from the will of the mortgage lender, relative to the fluctuations of verifiable benchmarks, mentioned in the contract, or to the legislative changes that require it; ... ----------- Lit. a) of art. 14 14 has been amended by section 4.2 4 4 of art. IV of EMERGENCY ORDINANCE no. 174 174 of 19 November 2008 , published in MONITORUL OFFICIAL no. 795 795 of 27 November 2008. b) the contract may provide that the interest rate varies only where the change in the ascending or decreasing sense is recorded, compared to the original interest rate, a minimum difference determined; ... c) repealed; ... ----------- Lit. c) of art. 14 14 has been repealed by section 6.6. 5 5 of art. IV of EMERGENCY ORDINANCE no. 174 174 of 19 November 2008 , published in MONITORUL OFFICIAL no. 795 795 of 27 November 2008. ------------ Article 14 has been amended by section 4.2. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 15 Only the expenses related to the preparation of the credit documentation and the formation of the mortgage and related guarantees will be put in charge of the borrower. The mortgage lender is required to insert in the content of the credit agreement clauses by which to inform the borrower of all the guarantees it understands to conclude on behalf of and on the borrower, as well as the conditions of their employment. ----------- Article 15 has been amended by section 6.6. 6 6 of art. IV of EMERGENCY ORDINANCE no. 174 174 of 19 November 2008 , published in MONITORUL OFFICIAL no. 795 795 of 27 November 2008. + Section 2 Compulsory insurance contracts Compulsory insurance contracts ------------ Title of Section 2 of the Cap. III has been amended by section 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 16 (1) In the case of the mortgage of a construction, the borrower will conclude an insurance contract covering all the risks related to it. The insurance contract will be concluded and renewed so as to cover the entire duration of the credit. ... (2) The rights of the insured deriving from the insurance contract provided in par. (1) will be divested in favour of the mortgage lender throughout the period of validity of the mortgage loan contract for real estate investments. ... (3) The opposability of the assignment to third parties, with the exception of the insurer, is made by its registration with the Electronic Archive of Real Securities, at the expense of the insured. ... (4) The opposability of the assignment to the insurer shall be made by notifying it by letter with acknowledgement of receipt or by means of bank or court bailiffs. ... (5) The compensation received by the mortgage creditor will lead to the settlement of the claim in the following order: the interest and unpaid interest on the borrowed capital, the amount of the remaining credit rates to be paid, other amounts due to be borrowed the mortgage lender on the date of receipt of the indemnity, under the credit agreement. ... (6) The insurance premiums will be paid by the borrower, and he will present to the mortgage creditor proof of their payment, on the dates agreed in the mortgage loan contract for real estate investments. ... ------------ Article 16 has been amended by section 4. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 17 If the mortgage loan for real estate investments funds the construction, rehabilitation, consolidation, expansion of some buildings, the mortgage lender may require the borrower to enter into an insurance contract for the risk non-completion of real estate investments for which credit was granted. The rights of the insured deriving from the insurance contract provided above will be divested in favour of the mortgage lender. ------------ Article 17 has been amended by section 6.6. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 18 *) Insurance contracts provided for in art. 16 and 17 will end with an insurance company, and the borrower will not have the right to impose a particular insurer on the borrower. ------------ Article 18 has been amended by section 6.6. 4 4 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Chapter IV Execution of claims of institutions granting mortgage loans for real estate investments ------------ Title Cap. IV has been amended by section 4.2 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 19 *) (1) In the case of late payment, the mortgage lender will send the borrower, at the last address communicated by him, a notification by registered letter with acknowledgement of receipt or by bailiff or bank, preventing it on the consequences of the breach of the mortgage contract for real estate investments ... ((. In the case of notification by registered letter, it shall be deemed to be received at the date of the post mentioned on the acknowledgement ... ------------ Article 19 has been amended by section 6.6. 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 20 If, within 30 days from the date of receipt of the notification provided for in art. 19 19, the borrower does not execute the obligations on which he was notified, the mortgage loan contract for real estate investments is considered terminated by full right and the entire amount of the loan, with the related interest on the date of operation of the termination, becomes chargeable. ------------ Article 20 has been amended by point 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 21 The mortgage loan contract for real estate investments, as well as the subsequent real and personal guarantees constitute enforceable securities, to be invested with the enforceable formula by the court of the place where the building is located. ------------ Article 21 has been amended by point 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 22 (1) The forced execution of the payment obligations of the borrowers will be made without the conditioning of the award of another living space. ... (2) In exceptional circumstances motivated as such, the court at the place of execution will be able to grant a maximum period of 90 days in which the debtor will be able to search for another home. This provision applies only to private borrowers. ... ------------ Article 22 has been amended by section 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 23 The execution of mortgage claims will be made by the executors of the authorized institutions or by the bailiffs, as the case may be, under the law. ------------ Article 23 has been amended by section 6.6. 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 23 ^ 1 Articles 19 and 20 shall not apply if the mortgage claim becomes chargeable according to art. 12 in cases of pre-term chargeability caused by causes other than late payment. ------------ Art. 23 ^ 1 was introduced by item 5 5 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Chapter V Repealed + Chapter V Repealed. ------------ Chapter V was repealed by lit. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Article 24 Repealed. ------------ Article 24 was repealed by letter. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Article 25 Repealed. ------------ Article 25 was repealed by the letter. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Article 26 Repealed. ------------ Article 26 was repealed by the letter. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Article 27 Repealed. ------------ Article 27 was repealed by the letter. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Article 28 Repealed. ------------ Article 28 was repealed by the letter. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Article 28 ^ 1 Repealed. ------------ Article 28 ^ 1 was repealed by letter. b) a par. ((2) art. 60 of LAW no. 304 304 of 27 November 2015 , published in MONITORUL OFFICIAL no. 902 902 of 4 December 2015. + Chapter VI Repealed. ------------ Head. VI has been repealed by section VI. 7 7 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 29 Repealed. ------------ Article 29 has been repealed by point (a). 7 7 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 30 Repealed. ------------ Article 30 was repealed by point (a). 7 7 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 31 Repealed. ------------ Article 31 has been repealed by point (a). 7 7 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 32 Repealed. ------------ Article 32 has been repealed by point (a) 7 7 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Chapter VII Final provisions ------------ Title Cap. VII has been amended by section 8 8 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 33 Authorized institutions shall be subject to prudential supervision and control of institutions empowered by law. ------------ Article 33 has been amended by section 6.6. 8 8 of art. I of LAW no. 34 34 of 1 March 2006 , published in MONITORUL OFFICIAL no. 200 200 of 3 March 2006. + Article 33 ^ 1 (1) Failure to comply with art. 11 11, 12, art. 13 13 para. ((2), art. 18 and 19 constitute contravention and are sanctioned with a fine of 5,000 lei to 50,000 lei. ... (2) The finding of contraventions and the application of sanctions provided in par. (1) shall be made by the authorized representatives of the National Consumer Protection Authority, if the contract is concluded with a consumer, as defined in the Government Ordinance no. 21/1992 ... on consumer protection, republished, with subsequent amendments and completions. ((. If the credit agreement is concluded with a legal person, the persons concerned may appeal to the court. ... ----------- Article 33 (1) has been amended by section 1. 4 4 of art. 92, Cap. XI of EMERGENCY ORDINANCE no. 50 50 of 9 June 2010 , published in MONITORUL OFFICIAL no. 389 389 of 11 June 2010. + Article 34 The provisions of this Law shall be completed Government Ordinance no. 2/2001 on the legal regime of contraventions, approved with amendments and additions by Law no. 180/2002 ,, as amended and supplemented, the Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy, approved with amendments and additions by Law no. 227/2007 ,, as amended and supplemented, the Government Ordinance no. 21/1992 on consumer protection, republished, with subsequent amendments and completions, of Law no. 193/2000 on unfair terms in contracts concluded between traders and consumers, republished, as amended, of Law no. 363/2007 on combating unfair practices by traders in relation to consumers and harmonising regulations with European consumer law, as amended, the Criminal Code, as well as the Civil Code, in the extent to which this law does not contain contrary provisions. ----------- Article 34 has been amended by section 4. 4 4 of art. 196 of LAW no. 71 71 of 3 June 2011 , published in MONITORUL OFFICIAL no. 409 409 of 10 June 2011. This law was adopted by the Senate at its meeting of 15 November 1999, in compliance with the provisions of art. 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT, DORU IOAN TARACILA This law was adopted by the Chamber of Deputies at the meeting of November 16, 1999, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. p. PRESIDENT CHAMBER OF DEPUTIES, ACSINTE GASPAR ---------
