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EXECUTIVE NOTE ON A LOAN AGREEMENT DURING Martial Law

On August 5, 2022, Law No. 2455-IX of July 27, 2022 "On Amendments to Certain Laws of Ukraine Regarding the Activities of Private Enforcement Officers and the Enforcement of Court Decisions and Decisions of Other Bodies (Officials) during the Period of Martial Law" came into force (hereinafter: Law 2455).


During the period of martial law, this Law 2455 prohibits the enforcement of decisions, including enforcement titles by notaries, in particular loan agreements.


The aforementioned amendments to Law 2455 effectively stopped the opening of new enforcement proceedings. However, debtors in existing enforcement proceedings remained in the Unified Register of Debtors, as Law 2455 did not impose any obligation on private and public executors to conclude such enforcement proceedings.


Execution proceedings remained open, but were discontinued during the period of martial law.


11.04.2023 The Verkhovna Rada adopted Law of Ukraine No. 3048-IX "On Amendments to Certain Laws of Ukraine on Certain Features of the Organization of Enforcement of Court Decisions and Decisions of Other Bodies during Martial Law", which entered into force on 05.06.2023 (hereinafter: Law 3048).


The adopted Law 3048 regulated a number of issues related to the enforcement of decisions during the period of martial law in Ukraine, in particular, the issue of enforcement titles, including loan agreements, was also clarified.


The third subparagraph of paragraph 2 of Law 3048, as amended, prohibits paragraph 10-2 of the section on the basis of writs of execution issued by notaries on loan agreements that were not notarized.


This means that the opening of new enforcement proceedings on the basis of notarial enforcement orders on loan agreements that have not been notarized is completely prohibited.


However, it should be noted that the new wording of paragraph 10-2 of the section (excluding the opening of enforcement proceedings on the basis of notarized enforcement orders for non-notarized loan agreements).


The above-mentioned amendments to the law allow public and private executors to enforce writs of execution issued on notarized pledge agreements and mortgage agreements, regardless of the date of their execution; writs of execution on the claim of the subject of a financial lease agreement (object) issued under financial lease agreements, regardless of the date of their execution, as well as writs of execution issued before the introduction of martial law in Ukraine by the Decree of the President of Ukraine No. 64/2022 of 24.02.2022 "On the introduction of martial law in Ukraine", including non-notarized loan agreements, which today allows private and state enforcement officers to "supplement" already ongoing enforcement proceedings.


Today, private and public enforcement officers are actively working to conduct open enforcement proceedings for notarized enforcement titles issued under non-notarized loan agreements prior to the introduction of martial law in Ukraine.


Attorney Weitz provides high quality services for challenging a notary's enforcement order in cour.


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