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Law No. 34 Of 1 March 2006 For The Modification And Completion Of The Law #. 190/1999 Relating To Mortgage Loans For Real Estate Investment

Original Language Title:  LEGE nr. 34 din 1 martie 2006 pentru modificarea şi completarea Legii nr. 190/1999 privind creditul ipotecar pentru investiţii imobiliare

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LEGE no. 34 34 of 1 March 2006 to amend and supplement Law no. 190/1999 on mortgage credit for real estate investments
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 200 200 of 3 March 2006



The Romanian Parliament adopts this law + Article I Law no. 190/1999 on mortgage loan for real estate investments, published in the Official Gazette of Romania, Part I, no. 611 of 14 December 1999, as amended, shall be amended and supplemented as follows: 1. Chapter I shall read as follows: "" CHAPTER I Mortgage loan for real estate investments. Definitions 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 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. " 2. After Chapter I, a new chapter, chapter I ^ 1, is inserted, with the following contents: "" CHAPTER I ^ 1 Guaranteeing mortgage loan for real estate investments Article 3. -(1) The mortgage constituted to guarantee the mortgage loan for real estate investments shall last until the full repayment of all the amounts due under that contract, the provisions of art. 1785 and 1786 of the Civil Code not applicable. (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. Art. 3 ^ 1. -(1) Provisions of art. 1775 of the Civil Code does not apply to mortgages constituted for the guarantee of mortgage loans for real estate investments granted under the present law. (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. Article 4. --Provisions art. 1722 of the Civil Code applies only if the advertising formalities provided by the law have been fulfilled before the registration of the mortgage constituted under the conditions of this law. 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). ' 3. Chapter II, comprising Articles 6 and 7, shall be repealed. 4. Chapter III shall read as follows: "" CHAPTER III Mortgage loan agreement for real estate investments and insurance contract Section 1 Mortgage loan agreement for real estate investments-mandatory clauses for the protection of borrowers Article 8. -Before the signing of the mortgage loan contract for real estate investments, the authorized institution will provide the borrower with a written offer, which will include all the terms of the contract and its term of validity, which does not will be less than 10 days from the time of receipt of the offer by the potential debtor. Article 9. -The mortgage loan agreement for real estate investments will only be modified in writing by the parties, in compliance with the provisions of this law. 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 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 12. -The terms of chargeability ahead of time, 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 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 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 linked to the fluctuations of a reference index referred to in the contract; 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) the change in the interest rate must be communicated to the borrower at the latest on the date of application of the new rate, except for the a). Article 15. -Only the expenses related to the preparation of the credit documentation and the constitution of the mortgage and other guarantees will be put to the borrower, as the case may be. Section 2 Mandatory insurance contracts 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 17. -If the mortgage loan for real estate investments funds the construction, rehabilitation, consolidation, extension 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 18. -The 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 on the borrower a certain insurer. " 5. Chapter IV shall read as follows: "" CHAPTER IV Execution of claims of institutions granting mortgage loans for real estate investments 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 him from 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 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 21. -The mortgage loan agreement 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 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 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. Art. 23 ^ 1. -Article 19 and 20 shall not apply if the mortgage claim becomes chargeable according to art. 12 12 in cases of pre-term chargeability caused by causes other than late payment. ' 6. Chapter V shall read as follows: "" CHAPTER V Assignment of mortgage receivables Article 24. -(1) Mortgage claims, which are part of the portfolio of an institution authorized by law, may be assigned to another institution of the same type or to other entities authorized and regulated in this regard by special laws. (2) The transferee acquires, in addition to the mortgage right related to the mortgage loan for real estate investments, the rights arising from the insurance contract for the property subject to this mortgage, as well as the other guarantees accompanying Mortgage debt transmitted. Article 25. -(1) The assignment of a mortgage receivable as well as a portfolio of mortgage receivables becomes opposable to third parties who did not know it in another way, except for the failed debtor, by enrolling the assignment to the Electronic Archive of Real Guarantees Securities. (2) In the case of the assignment of a portfolio of mortgage receivables, the opposability can also be achieved by signing up to the Electronic Securities Archive of Real Securities of a global assignment opinion, describing the claims that fall into the Your portfolio The description of the claims can be made, as the case may be, by using a generic formula for the entire portfolio or for a part thereof, respectively by describing each individual claim. (3) In the case of the assignment of a mortgage claim or a portfolio of mortgage receivables, the opposability to third parties of each transmission of the mortgage right related to a divested claim is made by enrolling this transmission to the Archive Electronic Real Securities Guarantees, as well as by noting it in the land book of the respective property. Article 26. -(1) The assignment of a mortgage receivable, individual or within a portfolio of mortgage receivables, becomes opposable to the debtor ceded by the notification addressed to him by one of the parties of the assignment contract. (2) If the transferor and the transferee have not agreed otherwise, the assignment shall be notified by the transferor to the failed debtor, within 10 days from the conclusion of the assignment contract, by registered letter. ((3) The notification will mention the financial institution that will collect from the debtor the amounts for the repayment of the loan after the assignment. Article 27. -If the transferor and the transferee do not otherwise agree, the repayment of mortgage loans for real estate investments will be made to the transferor, acting as the trustee of the transferee. The transferor will transmit the amounts thus obtained to the transferee, and the expenses generated by the collection and transmission of the amounts will be borne by the transferee within the limits of the amounts established by the mortgage receivables assignment contract. Article 28. -If the transferor will continue to receive the reimbursed amounts and if the parties have not agreed otherwise, the execution of the mortgages and the other guarantees will be made by him on behalf of and on behalf of the transferee, at the latter's expense. Article 28 ^ 1. -In the cases provided in art. 27 and 28, the transferor may not waive the warrant. " 7. Chapter VI, comprising Articles 29 to 32, shall be repealed. 8. Chapter VII shall read as follows: "" CHAPTER VII Final provisions Article 33. -Authorized institutions are subject to prudential supervision and control of institutions empowered by law. Article 34. -The provisions of this law are supplemented by the provisions Law no. 58/1998 on banking, republished. " + Article II Law no. 190/1999 on mortgage loan for real estate investments, published in the Official Gazette of Romania, Part I, no. 611 of December 14, 1999, as amended, as well as with the amendments and completions brought by this law, will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (2) of the Romanian Constitution, republished. CHAMBER OF DEPUTIES PRESIDENT ADRIAN NASTASE p. SENATE PRESIDENT, TEODOR VIOREL MELESCANU Bucharest, March 1, 2006. No. 34. ----------