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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Law No. 34 of 1 March 2006 for the modification and completion of the law #. 190/1999 relating to mortgage loans for property investment ISSUER published in PARLIAMENT OFFICIAL GAZETTE nr. 200 from 3 March 2006 Parliament adopts this law.

Article I the law. 190/1999 relating to mortgage loans for property investment, as published in the Official Gazette of Romania, part I, no. 611 of 14 December 1999, as amended, is modified and completed as follows: 1. Section I shall read as follows: "chapter I mortgage loans for investment properties. Definitions Art. 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.

Art. 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 its extension, but not limited to. "

2. After chapter I introduces a new chapter, chapter I ^ 1 with the following content: "Chapter ^ 1 Guaranteeing the mortgage for investment property Art. 3.-(1) Mortgage guarantee made available to mortgage real estate investment lasts until the full repayment of all sums due under the said contract, the provisions of art. 1785 and 1786 of the civil code as they are not applicable.

(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.

Art. 3 ^ 1. -(1) the provisions of art. 1775 of the civil code shall not apply to mortgages constituted for guaranteeing mortgage loans for real estate investments granted under this law.

(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.

Art. 4.-the provisions of articles. 1722 of the civil code applies only where the formalities provided for by the law have been fulfilled prior to entry of the mortgage established under this law.
Art. 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)."

3. Chapter II, including articles 6 and 7 shall be repealed.
4. Chapter III shall read as follows: "CHAPTER III contract for mortgage for real estate investment and insurance contract section 1 contract of mortgage loan for investment property-binding clauses for the protection of borrowers Art. 8.-before signing the contract of mortgage loan for investment property, approved institution will provide the borrower a written offer, which will contain all the terms of the contract and the term of validity, which shall not be less than 10 days from the receipt of the offer by the potential debtor.
Art. 9.-the contract of mortgage loan for investment property will not be able to be modified only in writing by the parties, in compliance with the provisions of this law.
Art. 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.

Art. 11.-it is 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.
Art. 12.-Clauses in 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.
Art. 13. — (1) the borrowers have the right to repay the credit received in anticipated 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 property investment.

Art. 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 linked to fluctuations in an index of reference mentioned in the contract;

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 interest rate) amendment must be communicated to the borrower no later than the date of application of the new rates, except covered by subparagraph (a). a). 15.-in charge of the borrower will be available only expenses related to preparation of credit documentation and the establishment of the mortgage and other guarantees, where applicable.
Section 2 of the compulsory insurance contracts Art. 16. — (1) in the case of a ipotecării, 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.

Art. 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.
Art. 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 certain insurer. "
5. Chapter IV shall read as follows: "CHAPTER IV Enforcement institutions that granted claims mortgages for real estate investment Art. 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.

Art. 20.-In the event that, 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.
Art. 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.
Art. 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.

Art. 23. Enforcement of mortgage claims-shall be made by authorized institutions ' own executors or bailiffs, as appropriate, in accordance with the law.
Art. 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 delay payment. "
6. Chapter V shall read as follows: "chapter V assignment of mortgage claims Art. 24. — (1) the claims of the mortgage-backed securities, which are part of the portfolio to an institution authorized by law, may be transferred to another institution of the same or other entities authorized and regulated in this respect by special laws.

(2) the transferee acquires, in addition to the right of the related mortgage mortgage for investment property, the rights arising from the insurance contract for the property which is the subject of such mortgages, as well as other guarantees that accompany mortgage claim.

Art. 25. — (1) the assignment of a mortgage receivables, as well as a portfolio of mortgage receivables against third parties becomes relied on that have not met the other way, with the exception of the debtor of the assignment by entering ceded to Real guarantees electronic archive.

(2) in the case of transfer of a portfolio of mortgage debt, before it can achieve and by enrolling in the electronic archive of Movable Collateral to a global assignment, to describe the claims falling within the portfolio yielded. Description of the claims can be made, where appropriate, through the use of a generic formula for the entire portfolio or a part thereof, namely by describing each of the claims.

(3) In the case of assignment of a claim guaranteed by mortgages or a mortgage portfolio of receivables vis third parties of each assignment of the right of mortgage related a licensed claims shall be made by being transmitted to the inclusion of this electronic archive of Movable Warranties, as well as by her notation in the land register of the property in question.

Art. 26. — (1) the assignment of a mortgage receivables, individual or in the context of a portfolio of mortgage receivables, the debtor becomes relied on by its notification snapped by one of the parties to the contract of assignment.

(2) If the transferor and the transferee have not otherwise agreed, the assignment shall be notified to the debtor by the assignor snapped, within 10 days after the conclusion of the contract of assignment, by registered letter.

(3) the notification will include the financial institution will charge from the borrower for the loan repayment amounts after assignment.

Art. 27.-where the transferor and the transferee shall not otherwise agreed, the repayment of mortgage loans for real estate investments will be made to the assignor, acting as an agent for the transferee. Assignor will transfer to the assignee the sums thus obtained, and the costs arising from the collection and transmission of the amounts to be borne by the transferee to the extent of the amounts fixed by the contract of assignment of mortgage claims.
Art. 28.-where the transferor will continue to receive the amounts reimbursed and unless the parties have otherwise agreed, the performance of mortgages and other collateral will be made by him in the name of and on behalf of the assignee, at the expense of the latter.
Art. 28 ^ 1. -In the cases referred to in article 1. 27 and 28, the assignor may not opt out of the mandate. "
7. Chapter VI, comprising 29-32 articles, is hereby repealed.
8. Chapter VII shall read as follows: "CHAPTER VII final provisions Art. 33. the authorised institutions are subject to supervision and control institutions empowered by law.
Art. 34.-the provisions of this law shall be supplemented by the provisions of law No. 58/1998 concerning banking activity, republished. "

Article II law. 190/1999 relating to mortgage loans for property investment, as published in the Official Gazette of Romania, part I, no. 611 of 14 December 1999, with subsequent amendments, as well as with the changes and additions brought about by this law, shall the Republic Official Gazette of Romania, part I, posing a new texts.
This law was adopted in the Romanian Parliament, in compliance with the provisions of art. 75 and of art. 76 para. (2) of the Constitution of Romania, republished.
No. 34.

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