Law on Enforcement and Securing of Claims

Law on Enforcement and Securing of Claims The Law was published in the Official Gazette of Montenegro 36/2011, 28/2014, 20/2015, 22/2017, 76/2017 - Decision of the Constitutional Court of Montenegro and 25/2019. Title I BASIC PROVISIONS Contents of the Law Article 1 The procedure of enforced satisfaction of claims on the basis of domestic or foreign enforceable or authentic document (hereinafter referred to as: enforcement procedure) and securing of claims (hereinafter referred to as: securing of claims procedure) shall be carried out in accordance with this Law, unless otherwise prescribed by a separate law. This Law shall also apply to involuntary enforcement of a decision adopted in an administrative procedure on fulfilling a monetary obligation, if enforcement is levied on real estates, shares and holdings of business organization members. This Law shall also apply to involuntary enforcement of notarial documents and other documents envisaged by law. This Law shall also apply to enforcement and securing of claims on ship and aircraft, only if prescribed so by a separate law. Initiation of the Procedure Article 2 Enforcement procedure shall be initiated by a petition of an enforcement creditor, while procedure for securing of claims shall be initiated by a petition of security petitioner. The procedures referred to in paragraph 1 of this Article shall be initiated ex officio where prescribed so by law. Authority of Public Enforcement Officer Article 3 Public enforcement officer shall have authority to decide in enforcement procedure, to implement enforcement, as well as to enforce securing of claims; except in the cases where law stipulates authority of the court. Public enforcement officer shall order and implement enforcement on the basis of enforceable document of a court or body the registered seat of which is at the territory the public enforcement officer is appointed for. Public enforcement officer, on whose territory an enforcement debtor has a permanent residence or registered seat, shall be in charge of ordering and implementing enforcement on the basis of an authentic document. Public enforcement officer appointed for the territory of the court that adopted the decision on securing of claims shall be in charge to enforce securing of claims. When a public enforcement officer carries out actions to implement enforcement and enforce securing of claims outside the territory he/she is appointed for, he/she may carry out these actions personally or through a public enforcement officer from other territory. Court Jurisdiction

Article 4 The court shall have jurisdiction to decide in enforcement procedure and enforce court decisions:

• To hand over or take away a child;
• To reinstate an employee to work;
• Pursuant to which enforcement debtor is obliged to perform an action that no other person can perform instead of him/her in accordance with law or legal transaction; The court shall decide on a petition to create security. The court shall also decide on:
• Petition for counter-enforcement;
• Request of an enforcement creditor for payment of court penalties. Composition of the Court Article 5 A single judge shall conduct enforcement procedure and securing of claims procedure and make decisions thereon in the first instance in case of legal matters that the jurisdiction of the court is envisaged for. A single judge, i.e. a three-judge panel of the first instance court shall make decisions on complaints in the second instance. Urgency and Sequence of Actions Article 6 Enforcement procedure and securing of claims procedure shall be urgent. Cases shall be processed in the order they are received, unless the nature of claim or special circumstances require to act otherwise. Decisions Article 7 In enforcement procedure and securing of claims procedure the court and public enforcement officer shall render rulings and conclusions. Conclusion shall order certain actions to be carried out and shall decide on issues regarding procedure management. Complaint Article 8 A complaint may be lodged in line with this law against a ruling in the enforcement procedure and securing of claims procedure. A complaint shall not be allowed against conclusions. Protection of Parties, Participants in the Enforcement Procedure and their Families Article 9

In implementing enforcement, the court and public enforcement officer shall be obliged to take into consideration personal dignity of a party, participants in the procedure and their family members. Scope of Enforcement and Securing of Claims Article 10 Enforcement for satisfying monetary claims and securing such claims shall be ordered and levied in the scope necessary to satisfy or to secure such claims. Order of Satisfaction of Several Enforcement Creditors Article 11 Several enforcement creditors satisfying their monetary claims against the same enforcement debtor and against the same asset subject to enforcement shall be satisfied in the same order they acquired the right to be satisfied from that asset, except in the cases where this Law stipulates otherwise. Enforcement of a Foreign Enforceable Document Article 12 Enforcement of a foreign enforceable document shall be ordered and levied in accordance with this Law, if the foreign enforceable document meets the requirements for recognition and enforcement, stipulated in the law or international treaty and if it has a prior recognition of the court with jurisdiction. Enforcement on the Property of a Foreign State Article 13 Enforcement or securing of claims against the property of a foreign state in Montenegro or international organization located at the territory of Montenegro cannot be ordered without a prior written consent of the state administration authority competent for foreign affairs, unless the foreign state or international organisation has explicitly agreed by way of a written consent to enforcement or securing of claims. Application of Provisions of the Law on Civil Procedure Article 14 Provisions of the law governing the civil procedure shall apply accordingly to enforcement procedure and securing of claims procedure, unless this or another law stipulates otherwise. Use of Gender-Sensitive Language Article 15 Terms used in this Law for natural persons in masculine gender shall imply the same terms in feminine gender. Definitions Article 16 As used in this Law, the following terms shall have the following meanings:

1. Claim shall mean the right to collect monetary amount or the right giving, act, omission or suffering;
2. Enforcement creditor shall mean a person whose claim is being satisfied;
3. Enforcement debtor shall mean a person against whom a claim is being satisfied;
4. Security petitioner shall mean a person who initiated the procedure to secure a claim;
5. Security contester shall mean a person against whom a claim is secured;
6. Party shall mean an enforcement creditor, i.e. an enforcement debtor, as well as a security petitioner, and a security contester;
7. Participant in the procedure shall mean a person who in the enforcement procedure or securing of claims procedure exercises some of his rights or legal interest and is not a party in the procedure;
8. Third person shall mean a person who claims, regarding the asset subject to enforcement, that he is entitled to prevent the enforcement until the termination of the enforcement procedure, and file a complaint with the first-instance court, requesting that the enforcement on such an asset is declared inadmissible;
9. Pre-registration shall mean a type of registration in the public records by which rights on immovable property and other assets subject to enforcement are conditionally acquired, transferred or terminated. Title III ENFORCEMENT PROCEDURE I GENERAL PROVISIONS Grounds for Enforcement Article 17 Enforcement shall be ordered on the basis of an enforceable or authentic document, unless the law stipulates otherwise. Enforceable Documents Article 18 Enforceable documents shall be:
10. Enforceable court decision and court settlement;
11. Decisions and settlements that are considered to be enforceable documents by separate laws;
12. Mortgage agreement, or lien statement made in accordance with the legislation governing mortgage;
13. Notarial deed representing an enforceable document in accordance with law and a foreign notarial deed if it contains all elements necessary for enforcement in accordance with law and if it is considered to be an enforceable document in the country of origin;
14. any other document defined in the law as an enforceable document. Decision and Settlement Article 19 A court decision, under this Law, shall mean a judgment, ruling, ruling on securing of claims, payment and other court order, and arbitration decisions; while court settlement shall mean settlement reached before the court.

Decision in administrative procedure, in terms of this Law, shall mean a ruling and conclusion of a state administration body and other state body, as well as a business organization or other legal entity adopted in performance of public authorities, while settlement in administrative procedure shall mean settlement reached in terms of the law stipulating general administrative procedure. Enforceability of Decision Article 20 Court decision shall be enforceable if it has become final and if a deadline for voluntary fulfilment of obligation of the enforcement debtor has expired. Enforceability of a decision rendered in administrative procedure shall be established in line with the law regulating administrative procedure. Deadline for voluntary fulfilment of obligation shall run from the day of submitting a decision to enforcement debtor. On the basis of a decision that has partially become enforceable, enforcement may be ordered only to that extent. Enforcement shall be ordered also on the basis of a court decision that has not become final and on the basis of a decision rendered in administrative procedure that has not become final, if law stipulates that appeal does not withhold the enforcement of a decision. Enforceability of Settlement Article 21 Court settlement and settlement reached in administrative procedure shall be enforceable, if a claim to be satisfied through settlement is mature. Maturity of a claim shall be proven by settlement minutes or by public document or document authenticated in accordance with law. Maturity that cannot be proven in the manner referred to in paragraph 2 of this Article shall be proven by a final decision adopted in a civil procedure establishing maturity. Eligibility of Enforceable Document for Enforcement Article 22 Enforceable document shall be eligible for enforcement if it specifies an enforcement creditor and an enforcement debtor, as well as the asset, type, scope and deadline for fulfilment of obligations. If an enforceable document does not specify a deadline for voluntary fulfilment of the obligation, such a deadline shall be specified by a writ of enforcement. Enforceability of Notarial Deed Article 23 Notarial deed shall be enforceable if it has become enforceable according to a separate law governing enforceability of such a deed. On the basis of a notarial deed that has become partially enforceable, enforcement shall be levied only to that extent. Collection of Default Interest Article 24

If after having produced an enforceable document there is a change in the amount of a default interest, at the proposal of an enforcement creditor or enforcement debtor, a ruling shall order the collection of default interest at the changed rate. If an enforceable document also specifies costs of the procedure, at the proposal of enforcement creditor, a ruling shall order the collection of default interest on the amount of the awarded costs at a stipulated rate, from the day of adoption of the enforceable document to the day of collection. Authentic Document Article 25 Enforcement to satisfy monetary claim shall be ordered also on the basis of authentic document. Authentic document shall be:

1. Bill of exchange and cheque;
2. Bond and other security issued in series entitling their owner to payment of nominal value;
3. Invoice (bill) with bill of lading or other written proof that enforcement debtor is informed about the occurred obligation;
4. Excerpts from business records for rendered communal services, electrical energy services, telephone and other similar services;
5. Bank guarantee;
6. Letter of credit;
7. Authenticated statement of enforcement debtor authorizing a bank to transfer monetary assets from his account to the account of enforcement creditor;
8. Calculation of interests with proofs of the ground for maturity and amount of claim;
9. Authenticated interim or final payment application for executed construction works;
10. Excerpt of the open items signed and authenticated by the enforcement creditor and enforcement debtor. Authentic document shall be eligible for enforcement if it specifies an enforcement creditor and an enforcement debtor, as well as the asset, type, scope and deadline for fulfilment of obligations. When an authentic document does not specify a claim maturity, enforcement shall be ordered if an enforcement creditor submitted a written proof that he requested from an enforcement debtor to fulfil the matured obligation within a specified time period. Means and Assets subject to Enforcement Article 26 Means of enforcement shall mean enforcement actions for the purpose of enforced satisfaction of a claim, in accordance with law. Means of enforcement to satisfy a monetary claim shall be: sale of movables, sale of immovables, transfer of monetary claim, transfer of claim for handing over movables or immovables, conversion into cash of other property rights, transfer of funds kept in a bank account, sale of shares and sale of holdings in business organizations. Assets subject to enforcement shall mean assets and rights that enforcement can be implemented on, in accordance with law, to satisfy a claim. Assets that cannot be traded with and other things exempted by law from enforcement cannot constitute assets subject to enforcement Buildings, arms and equipment intended for the state defence and safety cannot constitute assets subject to enforcement.

When assessing whether an asset or a right can be subject to enforcement or whether enforcement on an asset or right may be restricted, circumstances at the time of submission of the enforcement petition shall be taken into account, unless otherwise explicitly prescribed by this Law. Scope of Enforcement Article 27 Enforcement shall be implemented by means and on assets stated in the enforcement petition. If the means and assets subject to enforcement are not stated in the enforcement petition, a public enforcement officer shall implement enforcement by means and on assets that he believes are the most purposeful, and that will provide for the most favourable satisfaction of enforcement creditor. Enforcement creditor may request from a public enforcement officer to take with no restrictions all actions in the enforcement procedure, or condition taking of certain actions by his prior consent. Change of Means and Assets Subject to Enforcement Article 27a If the claim cannot be satisfied by means and on the assets subject to enforcement that are already determined, the court, i.e. public enforcement officers shall, upon proposal of the enforcement creditor, render a ruling and change the means and assets subject to the enforcement or decide that enforcement shall continue by other means and on other assets. Transfer of Claim or Obligation Article 28 Enforcement shall be ordered and implemented also based on the petition and for the benefit of a person who is not designated as an enforcement creditor in an enforceable document, i.e. authentic document if such person proves by a public or document authenticated in accordance with law that a claim has been transferred to him or that has been assigned to him in another manner, and if it is not possible to prove so, transfer or assignment of claim shall be proved by a final enforceable document. The provision of paragraph 1 of this Article shall apply also in the case of enforcement against a person who is not designated as an enforcement debtor in an enforceable document i.e. authentic document. Conditional and Mutual Obligation Article 29 Enforcement depending on prior fulfilment of an obligation of the enforcement creditor or creation of a condition shall be ordered if an enforcement creditor proves, by a public document or private document authenticated in accordance with law, that he has fulfilled his obligation or that he has secured its fulfilment, or that the condition has been created. The fulfilment of the obligation, i.e. creation of the condition shall be proved by a final decision adopted in a civil or administrative procedure, if enforcement creditor is not in the position to prove it in the manner referred to in paragraph 1 of this Article.

If an enforcement debtor, based on an enforceable document, is obliged to fulfil the obligation, provided that the obligation towards him is simultaneously fulfilled, enforcement shall be ordered, if the enforcement creditor submits a proof that he has secured the fulfilment of his obligation. It shall be considered that enforcement creditor has secured the fulfilment of his obligation in terms of paragraph 3 hereof, if he deposited the assets subject to obligation with a public enforcement officer or has acted in another appropriate manner to the same effect. Enforcement creditor who claims that he has already fulfilled his obligation should prove that in the manner referred to in paragraphs 1 and 2 of this Article. Alternative Obligation of Enforcement Debtor’s Choice Article 30 If an enforcement debtor is entitled, based on enforceable document, to choose among several assets subject to his obligation, the enforcement creditor shall be obliged to designate in the enforcement petition the asset that should be used for the fulfilment of the obligation. Enforcement debtor shall be entitled to make a choice as long as judgment creditor does not receive fully or partially the asset he requested in the enforcement petition. Alternative Authorization of Enforcement Debtor Article 31 The enforcement debtor who is ordered by an enforceable document to fulfil a non￾monetary obligation, with an right to be relieved from meeting that obligation by paying a certain monetary amount determined in the enforceable document, may pay such an amount as long as the enforcement creditor does not even partially satisfy his claim. Determining Debtor’s Property Article 32 Enforcement debtor shall be obliged to submit, at the request of the court or public enforcement officer, all data about his property and revenues and all other data necessary for implementing enforcement. The court or public enforcement officer may request the data referred to in paragraph 1 of this Article also from other natural and legal persons, state authorities, state administration authorities and local administration authorities. A pecuniary fine in accordance with Article 230 of this Law shall be imposed by the court ex officio or at the proposal of a public enforcement officer on a natural person or responsible person in a legal entity who does not submit data or submits incorrect or incomplete data. Surety Article 33 A surety in terms of this law shall be deposited in cash. Exceptionally, the court or public enforcement officer may approve, with the consent of judgment creditor, surety in the form of a bank guarantee, securities, valuables or movable asset the value of which can be easily determined on the market and that can be quickly and simply converted into cash.

Opposite party shall gain a statutory lien on the deposited surety. Proof of depositing the surety shall be the ground for registration of lien in the relevant registry, in accordance with law. The court or public enforcement officer shall decide, in the form of a conclusion, on the request to deposit surety. If the court or a public enforcement officer in an enforcement procedure decides on the right of the opposite party to damages or costs of the procedure associated with the action that the surety is given for, at its proposal, the same ruling shall decide also on the collection of the determined claim from that surety. Enforcement Procedure Costs Article 34 Procedure costs concerning the ordering and implementing of the enforcement shall be borne by the enforcement debtor. Enforcement creditor shall be obliged to make advance payment for the enforcement costs within the deadline determined by the court or public enforcement officer. The court, i.e. public enforcement officer may suspend the enforcement if the enforcement costs are not paid in advance within the specified deadline, unless there is an exemption from the obligation to pay the costs of procedure. If the enforcement procedure is initiated ex officio, the costs shall be paid in advance by the body that adopted the enforceable document in the first-instance. Enforcement debtor shall be obliged to compensate the costs that were needed for enforcement to enforcement creditor, at his request. Enforcement creditor shall be obliged to compensate the enforcement costs groundlessly incurred to the enforcement debtor, at his request. Enforcement procedure costs shall be decided on by the court, i.e. public enforcement officer and in that procedure shall impose enforcement for satisfaction of such costs, in accordance with law and regulation governing the procedure costs. Request for compensation of costs may be submitted at the latest within 30 days from the day of terminating the procedure. Reinstatement to the Former Condition Article 35 Reinstatement to the former condition shall be allowed only in case of failure to meet the deadline for submitting a complaint against the writ of enforcement. The court shall decide on the reinstatement to the former condition. Inadmissibility of Review and Renewal of the Procedure Article 36 Neither appeal on points of law nor renewal of the procedure shall be allowed against a final ruling in the procedure of enforcement and securing of claims. II. ENFORCEMENT PETITION Contents of the Petition Article 37 Enforcement petition must specify: enforcement creditor and enforcement debtor, enforceable document, obligation of enforcement debtor, means of and asset subject to enforcement, as well as other data necessary for implementing the enforcement.

Enforcement petition based on an authentic document must also contain a request instructing the enforcement debtor to satisfy the claim along with awarded costs within eight days, and in case of disputes involving a bill of exchange and cheque within three days following the day of service of the ruling. With his enforcement petition based on an authentic document, enforcement creditor shall submit the authentic document in its original, authenticated transcript of photocopy that has to be authenticated. Enforcement petition to be submitted to a public enforcement officer, on the basis of an enforceable or authentic document, shall contain the elements referred to in paragraph 1 of this Article, provided that means of and assets subject to enforcement do not have to be specified. Movables that the enforcement is proposed against do not have to be described in more details in the enforcement petition. Certificate of Enforceability Article 38 If an enforcement petition is submitted to the court that did not decide on the claim in the first- instance, an enforceable document shall be submitted along with the petition, in the original or authenticated transcript that contains a certificate of enforceability. The court, i.e. the body that decided on the claim in the first-instance shall issue a certificate of enforceability. Groundless certificate of enforceability shall be cancelled by a ruling of the court or body that issued the certificate, based on the petition of a party or participant or third party or ex officio. If enforcement petition is submitted to a public enforcement officer, enforceable document with certificate of enforceability shall be submitted along with the petition. Withdrawal of the Enforcement Petition Article 39 During the enforcement procedure, enforcement creditor may withdraw his enforcement petition in its entirety or partially without consent of the enforcement debtor. In the case referred to in paragraph 1 of this Article, enforcement shall be terminated. Decision on terminating enforcement shall cancel all implemented enforcement actions, if the acquired rights of third parties are not affected thereby. If in the case referred to in paragraph 1 of this Article the enforcement has started, and withdrawal of the enforcement petition by enforcement creditor has caused damage to the enforcement debtor, the enforcement creditor shall be obliged to compensate the damage. Enforcement creditor may submit a new enforcement petition, after withdrawal of the petition. III. DECIDING ON THE ENFORCEMENT PETITION Deadline to Act Article 40 Court, i.e. public enforcement officer shall be obliged to decide on an enforcement petition within five days from the day of submitting the petition. Writ of Enforcement Article 41

In a writ of enforcement, the court, i.e. public enforcement officer shall adopt entirely or partially the enforcement petition. Writ of enforcement must specify: the court, i.e. or public enforcement officer, enforcement creditor and enforcement debtor, enforceable document, i.e. authentic document, obligation of enforcement debtor, means of and assets subject to enforcement, and other data necessary for implementation of enforcement. Public enforcement officer shall oblige enforcement debtor, by the writ of enforcement on the basis of the authentic document, to satisfy the claim together with the determined costs within eight days, or within three days upon the submission of the writ in case of bill of exchange- and cheque-related disputes, and order enforcement for the purpose of enforced collection of such claims. The writ of enforcement referred to in paragraph 1 of this Article shall contain a legal remedy notice. Ruling to Reject or Dismiss Article 42 Ruling by which enforcement petition is fully or partially rejected or dismissed (hereinafter referred to as: “the Ruling to reject or dismiss”) must be reasoned. The ruling referred to in paragraph 1 of this Article shall contain a legal remedy notice. IV. SERVICE Manners of Service Article 43 Service of submissions arising from within the work of public enforcement officers shall be done by direct delivery or by mail. A certificate on executed service shall be signed by a recipient and a person effecting the service. The recipient shall write the date of receipt in letters on the delivery notice. If a public enforcement officer makes the service of submissions, the service shall be done in accordance with the law governing the civil procedure, unless otherwise stipulated in this Law. Servicing Writ of Enforcement Article 44 Writ of enforcement shall be serviced on enforcement creditor and enforcement debtor, and ruling to reject, i.e. to dismiss the enforcement petition shall be serviced only on enforcement creditor. Along with the writ of enforcement, enforcement petition shall be serviced on enforcement debtor. Writ of enforcement on monetary claim shall be serviced also on the debtor of enforcement debtor, and writ of enforcement on the funds in the account of the enforcement debtor shall be serviced also on the bank. Writ of enforcement on movables shall be serviced on enforcement debtor immediately before taking the first enforcement action, unless otherwise stipulated in this Law. If a court that made a writ of enforcement does not have jurisdiction to implement enforcement, it shall refer the writ of enforcement to the court with jurisdiction to be serviced on parties and to be implemented. Writ of enforcement made on the basis of an authentic document shall be serviced on the bank only after it has become final, unless such enforcement is ordered on the basis of bill of exchange.

Service by Publication Article 45 If a public enforcement officer cannot properly perform service of submissions from within its work directly or by mail or if a temporary or permanent residence or registered seat of a party is unknown, service shall be done by publication. Publication shall be done by placing the submission on the notice board of the court with jurisdiction and by publishing the submission in the daily printed media outlet published on the entire territory of Montenegro. The publication shall contain: name of the public enforcement officer, name of a party, last known address, case number, brief basis for the enforcement, and deadline within which a party should contact a public enforcement officer. The publication shall also contain a warning that such a service is considered a proper service of process and that negative consequences that may occur shall be borne by the party itself. The service shall be deemed effected after expiry of the deadline of eight days from placing the submission on the notice board of the court, if prior to that it was published in a daily printed media. Application of Other Laws Article 46 Provisions of the law governing the civil procedure shall apply accordingly to matters concerning the service that are not regulated in this Law. V. COMPLAINT

1. Deadlines and Jurisdiction for Deciding in Second Instance Deadline for Lodging a Complaint Article 47 Complaint against a writ of enforcement, ruling to reject i.e. dismiss an enforcement petition, may be filed within five days from the day of servicing the writ/ruling. Complaint shall be lodged to the court or to the public enforcement officer who decided on the enforcement petition. Public enforcement officer shall be obliged to submit case file to the court within five days for the purpose of deciding upon the complaint. Jurisdiction for Deciding on Complaint in the Second Instance Article 48 A panel of judges of the same court that adopted the writ of enforcement, ruling on rejection, i.e. ruling on dismissing the petition shall decide in the second-instance on complaint against the writ of enforcement, ruling on rejection, i.e. ruling on dismissing the petition. Complaint against the writ of enforcement, ruling on rejection, i.e. ruling on dismissing the petition rendered by a public enforcement officer on the basis of enforceable document shall be decided on in the second instance by a single judge of the court the territory of which the public enforcement officer was appointed for.

Complaint against the writ of enforcement, ruling on rejection, i.e. ruling on dismissing the petition rendered by a public enforcement officer on the basis of an authentic document shall be decided on in the second instance by a panel of judges of the court the territory of which the public enforcement officer was appointed for. Complaint against the ruling rendered by a public enforcement officer in the procedure of implementing the enforcement shall be decided on in the second instance by a panel of judges of the court the territory of which the public enforcement officer was appointed for. The complaint referred to in paragraphs 1 and 3 of this Article and the complained referred to in Article 55 paragraph 3 and Article 56 paragraph 4 of this Law shall be decided upon within 15 days from the day of servicing the files. The complaint referred to in paragraph 2 of this Article shall be decided by the single judge within eight days from the day of servicing the files. 2. Complaint against a Writ based on Enforceable Document Lodging a Complaint Article 49 Enforcement debtor and enforcement creditor may lodge a complaint against a writ of enforcement based on an enforceable document. Enforcement creditor may contest the writ referred to in paragraph 1 of this Article only in the part that refers to costs of enforcement. Complaint shall not withhold the writ of enforcement, unless otherwise stipulated in the law. Complaint against ruling on rejecting, i.e. ruling on dismissing enforcement petition may be lodged by an enforcement creditor. Reasons for Complaint against a Writ of Enforcement Article 50 Complaint against a writ of enforcement on the basis of enforceable document may be filed due to the reasons preventing enforcement, if:

1. the court or public enforcement officer that rendered the writ of enforcement does not have jurisdiction;

2. the document on the basis of which enforcement is ordered does not have the capacity of an enforceable document;

3. the decision on the basis of which enforcement is ordered is not enforceable;

4. the decision on the basis of which enforcement is ordered is cancelled, annulled or altered;

5. the settlement on the basis of which enforcement is ordered is annulled;

6. the deadline for satisfaction of claim has not expired or if a condition determined by the settlement has not been created;

7. enforcement is ordered on assets, monetary claim and other rights exempted from enforcement, i.e. on which the possibility of enforcement is restricted;

8. the claim has ceased on the basis of fact that occurred after enforceability of the decision or prior to it, but at the time when enforcement debtor was not able to present it in the procedure that the enforceable document stems from, or if the claim has ceased on the basis of the fact that occurred after a settlement was reached;

9. enforcement creditor delayed the fulfilment of the obligation for the period that has not yet expired;

10. the deadline within which enforcement may be proposed in accordance with law has expired;

11. the claim has not been transferred to enforcement creditor, or if the obligation has not been transferred to enforcement debtor. Presenting the Facts and Proposing Evidence in Complaint Article 51 Enforcement debtor shall be obliged to present all reasons for contesting the writ of enforcement in the complaint and enclose to the complaint all pieces of evidence that the complaint is based on. After the expiry of the deadline for complaint, it shall not be allowed to present new facts and to propose new evidence. Complaint after Expiry of Deadline Article 52 Exceptionally, due to the reasons envisaged in Article 50, paragraph 1, item 8 of this Law, enforcement debtor may file a complaint against writ of enforcement also after the expiry of the deadline for complaint, until the enforcement is implemented. The complaint referred to in paragraph 1 of this Article may be filed only due to the reasons that occurred after the expiry of the deadline for filing a complaint against the writ of enforcement. The court shall reject the complaint referred to in paragraph 1 of this Article that is based on reasons the enforcement debtor already presented or could have presented in the previously filed complaint. Response to Complaint Article 53 Complaint against writ of enforcement shall be serviced on the enforcement creditor. The complaint referred to in paragraph 1 of this Article shall be serviced by public enforcement officer, i.e. the court that rendered the writ that is contested in the complaint. Enforcement creditor may file a response to complaint within five days from the day on which the complaint was lodged. Deciding in the First Instance on the Complaint against a Writ within the Jurisdiction of the Court Article 54 A single judge may exceptionally decide in the first instance, within five days, on the complaint against a writ of enforcement, as well as on the complaint against a ruling to reject or ruling to dismiss a petition that was rendered by the court based on an enforceable document. Reasons for Rejecting a Complaint and Assigning the Case to the Court with Jurisdiction Article 55 By a ruling a judge shall reject an untimely, incomplete or inadmissible complaint.

If a judge finds a complaint filed due to a lack of jurisdiction grounded, he/she shall abrogate his writ, cancel the implemented activities and assign the case file to the court with jurisdiction. Complaint against the ruling referred to in paragraphs 1 and 2 of this Article may be filed to the panel of judges of the same court within five days following the day of servicing of the ruling. Decisions on Complaint in First Instance Article 56 When a judge, who adopted a writ of enforcement, finds that a complaint of enforcement debtor is grounded, he/she may adopt the complaint, cancel the writ of enforcement, terminate the enforcement entirely or partially, and cancel the implemented actions. When a judge, who decided in the first-instance, finds that a complaint of enforcement creditor is grounded, he/she may adopt the complaint, cancel the writ and decide again on the petition or costs of the procedure. Judge may act in the manner referred to in paragraph 1 of this Article also with respect to the complaint referred to in Article 52 of this Law. Complaint against the ruling referred to in paragraphs 1 and 2 of this Article may be filed to the panel of judges of the same court within five days following the day of servicing of the ruling. Deciding on Complaint in the Second Instance Article 57 By a ruling a single judge, i.e. a panel of judges shall reject an untimely, incomplete or inadmissible complaint in the second instance. Acting upon complaint of enforcement debtor against the writ of enforcement, if the complaint is found to be grounded, a single judge, i.e. a panel of judges, shall adopt the complaint, cancel the writ of enforcement, terminate the enforcement entirely or partially and cancel the implemented actions. Acting upon complaint of an enforcement creditor, if the complaint is found to be grounded, a single judge, i.e. a panel of judges shall adopt the complaint, cancel the writ of enforcement and send the case to repeated decision-making process. If a single judge, i.e. a panel of judges, finds that there are not reasons due to which the complaint was filed, the complaint shall be rejected as groundless. 3. Complaint against Writ of Enforcement Based on Authentic Document Reasons for Complaint Article 58 Complaint against writ of enforcement based on authentic document may be filed if:

1. the document on the basis of which the enforcement was ordered is not an authentic one under the law;
2. the claim referred to in authentic document has not occurred;
3. untrue content is entered in the authentic document;
4. obligation referred to in authentic document has not matured;
5. Obligation has been fulfilled or has ceased in another manner.

Enforcement debtor shall be obliged to state in the complaint all reasons for contesting and to enclose all evidence the complaint is based on, and in case he/she fails to do so, he/she shall lose the right to subsequent presenting of the facts and proposing of evidence. Evidence Enclosed to the Complaint Article 59 Enforcement debtor shall be obliged to enclose to the complaint, written documents proving the allegations from the complaint, and in particular:

1. A final court decision determining the document is untrue, or extract from the Central Depositary Agency, if he/she claims the document is untrue;
2. Payment order in a written or electronic form on the basis of which the transfer of funds has been made, if he/she claims the obligation has been fulfilled;
3. Other written documents supporting allegations given in the complaint. If a complaint is lodged due to the fact that the claim is not mature referred to in Article 58 paragraph 1 item 4 of this Law, if the lack of maturity does not stem from the authentic document itself, the enforcement debtor shall be obliged to enclose a written statement that it stems from. Servicing Complaint on Enforcement Creditor Article 59a Complaint against a writ of enforcement based on authentic document shall be serviced on the enforcement creditor by the public enforcement officer who rendered the writ that is contested by the complaint. Enforcement creditor may lodge a response to the complaint within three days from the day on which the complaint was lodged. Procedure Upon Complaint Article 60 If a writ of enforcement is contested only to the extent of ordering enforcement, a further procedure shall be continued as the procedure upon complaint against a writ of enforcement adopted on the basis of an enforceable document. If an enforcement debtor fails to enclose evidence or if enclosed evidence does not make probable the grounds for his statements referred to in the complaint, the panel of the court shall dismiss the objection. If an enforcement debtor, through the enclosed evidence, makes probable the allegations from the complaint that contest the writ of enforcement entirely or in the part by which he/she is bound to satisfy the claim, the panel of the court shall abrogate the writ of enforcement in the part ordering enforcement and order the continuation of the procedure as in case of complaint against payment order. If the court panel finds grounded the complaint of the enforcement debtor contesting the writ in the part which orders the enforcement, it shall act in the manner referred to in Article 57, paragraph 2 of this Law. Complaint shall withhold the execution of the writ of enforcement, unless a writ is adopted based on a bill of exchange. VI. IMPLEMENTATION OF ENFORCEMENT Enforcement before Writ of Enforcement Becomes Final Article 61

Enforcement imposed on the basis of an enforceable document shall be implemented before the writ of enforcement becomes final, unless otherwise stipulated in this Law for certain enforcement actions. Enforcement ordered on the basis of an authentic document cannot be implemented before the writ of enforcement becomes final, except if the enforcement is ordered on the basis of a bill of exchange. Where enforcement is ordered on the basis of a bill of exchange, the bank is obliged to act upon the writ of enforcement and block monetary assets in the account of the enforcement debtor, while making a transfer of monetary assets upon an order of the public enforcement officer. Time of Enforcement Article 62 Enforcement shall be implemented every day from 08:00 to 21:00. Enforcement may be implemented also outside the time specified in paragraph 1 of this Article, only if there is an obvious avoidance or danger due to delay. Acting in Implementation of Enforcement Article 63 In searching an apartment of an enforcement debtor or clothes he/she is wearing and in taking other enforcement activities, a public enforcement officer shall act with due care for dignity of personality of enforcement debtor and members of his/her household. Enforcement actions in the apartment of enforcement debtor that are not attended by the enforcement debtor, his/her legal representative, proxy or adult member of his household, must be attended by two adult citizens. Enforcement in business or other premises of enforcement debtor shall be implemented during working hours in the presence of a person determined by the enforcement debtor, and if the enforcement debtor fails to determine such a person, enforcement action shall also be implemented without his/her presence When an enforcement action is to be implemented in locked premises, and enforcement debtor is not present or does not agree to open the premises, public enforcement officer shall open the premises in the presence of two adult citizens. Assistance of the Police Article 64 The court, i.e. public enforcement is authorized to remove a person disturbing implementation of enforcement, implementation of official actions. If the court or public enforcement officer is disturbed in undertaking the official action within implementation of the enforcement, upon their verbal request, the administration body in charge of police affairs (hereinafter referred to as: “Police Directorate”) shall be obliged to provide support in the place where enforcement is being implemented. If Police Directorate fails to act at the verbal request of the court, i.e. public enforcement officer, referred to in paragraph 2 of this Article to provide assistance in implementation of enforcement, the court, i.e. public enforcement officer, shall be obliged to immediately inform thereof the ministry in charge of police affairs. In the case referred to in paragraph 2 of this Article, the court, i.e. public enforcement officer, shall be obliged, within 48 hours, to make the verbal request in written form and submit it to the Police Directorate. Removing Irregularities in Implementation of Enforcement

Article 65 A party or participant in the procedure who believes that irregularities were made in implementing enforcement may submit a request for removing such irregularities to the court with jurisdiction. Reasoned request with evidence shall be lodged within three days from the day of finding about irregularities, and at latest within 15 days from the day of terminating the enforcement. Lodging of the request shall not withhold implementation of enforcement. Request for removing irregularities shall be serviced on the parties and participants in the procedure, as well as to the public enforcement officer the request refers to. The court may decide to hear the persons referred to in paragraph 3 of this Article. A single judge shall decide on the request referred to in paragraph 1 of this Article within three days from the day of receiving the request. If finds that the request is grounded, the court shall establish, in the form of a ruling, the irregularities, abrogate undertaken enforcement actions and order the removal of irregularities made by decisions and actions of the court or public enforcement officer. Complaint against the ruling of the court regarding the request for removal of irregularities in the enforcement procedure may be filed to the panel of the same court. Complaint shall be serviced on the other party and participant in the procedure who can lodge a response to the complaint within three days from the day of submitting the complaint. Complaint shall not withhold implementation of the enforcement. The court shall inform the ministry in charge of judicial affairs about irregularities in the work of public enforcement officer. VII. RIGHT OF ENFORCEMENT DEBTOR TO INITIATE CIVIL OR OTHER PROCEDURE Requirements for Initiating Civil or Other Procedure Article 66 Until the termination of enforcement procedure and in order to establish a fact related to the claim itself which might be disputable between the parties, enforcement debtor shall be entitled to initiate a civil or other procedure to declare enforcement inadmissible. Initiation of the procedure referred to in paragraph 1 of this Article shall not prevent further implementation of the enforcement. If it is determined by a final decision of the court that enforcement is inadmissible, enforcement shall be terminated at the proposal of enforcement debtor and enforcement actions shall be cancelled. VIII. RIGHT OF THIRD PERSON TO COMPLAINT AND TO INITIATE CIVIL PROCEDURE Requirements for Filing a Complaint and Referral of Third Person to Civil Proceedings Article 67 Until the termination of the enforcement procedure, a person who claims to have the rights related to the asset subject to enforcement that prevent the enforcement, may file a complaint to the court, requesting that the enforcement on such an asset is declared inadmissible. The court shall service the complaint to the enforcement creditor and enforcement debtor and invite them to make a statement about the complaint within five days from the day of service. If the enforcement is implemented by a public enforcement officer, the court shall service the complaint on him too.

The court shall reject the complaint, in the form of a ruling, if a third person does not make probable that he/she has the right to asset subject to enforcement that prevents enforcement. During the entire procedure, in the form of a ruling, the court may refer a third party whose right it finds probable, although it is contested by enforcement creditor or the enforcement creditor did not make any statement thereon, to initiate a civil procedure against the enforcement creditor, within 15 days from the day of servicing the ruling, in order to have the enforcement on such assets declared inadmissible. Enforcement debtor who contests the right of a third person must be included in the court claim referred to in paragraph 4 of this Article for the purpose of establishing that right. No complaint can be filed against the ruling referred to in paragraph 3 of this Article. Filing a complaint referred to in paragraph 1 of this Article shall not prevent further implementation of the enforcement. The court shall service the ruling referred to in paragraphs 3 and 4 of this Article also to a public enforcement officer if it is the public enforcement officer who implements the enforcement. Initiating Civil Procedure without Referral of the Court Article 68 A person who claims that regarding the enforcement he/she has the right that prevents the enforcement may, by the time of termination of the enforcement procedure, and without any referral of the court referred to in Article 67 paragraph 4 of this Law, initiate a civil procedure against the enforcement creditor to declare the enforcement on such assets inadmissible. Court claim in the civil procedure referred to in paragraph 1 of this Article shall include the enforcement debtor that contests the right of the third person. Initiation of the procedure referred to in paragraph 1 of this Article shall not prevent further implementation of the enforcement. Right of Co-Owners Article 69 As an exception to Article 67 paragraph 4 and Article 68 paragraph 1 of this Law, a third person whose ownership interest in the co-ownership of movable property that is subject to enforcement does not exceed a half of the value of that property cannot initiate a civil procedure, and cannot be referred by the court to initiate a civil procedure with the request to declare enforcement on his ownership interest inadmissible, but he/she shall be entitled to be satisfied from the amount obtained by the sale of the property prior to all enforcement creditors and prior to covering the enforcement procedure costs, as well as to request, before the delivery of the asset to the best bidder, that he becomes the sole owner of the asset subject to enforcement if he/she deposits the amount corresponding to the value of the ownership interest of the enforcement debtor in the asset. The person referred to in paragraph 1 of this Article whose ownership interest in the asset subject to enforcement is contested may, for the purpose of determining his ownership interest in the asset, initiate a civil procedure that may include also the enforcement debtor, if he/she contests his ownership interests in the asset. IX. DELAY AND TERMINATION OF ENFORCEMENT Delay of Enforcement Based on Proposal of Enforcement Creditor Article 70

Based on the proposal of enforcement creditor, the court, i.e. public enforcement officer, shall delay fully or partially the enforcement, if implementation of enforcement has not started. If implementation of enforcement has started, and enforcement debtor stated, within a specified deadline, that he opposes the delay, the court, i.e. public enforcement officer, shall dismiss the proposal for delay. If the law envisages that enforcement should be requested within a certain deadline, enforcement creditor may lodge a proposal for delay within that deadline. Delay of Enforcement Based on Proposal of Enforcement Debtor from Particularly Justified Reasons Article 71 Based on the proposal of enforcement debtor, the court may, if an enforcement debtor makes probable that implementation of enforcement would cause irreparable or hardly reparable damage, fully or partially delay enforcement, if:

1. at the request of enforcement debtor for annulling a decision of arbitration court on the basis of which enforcement has been ordered, a first-instance decision was made adopting the request;
2. at the request of an enforcement debtor for cancelling certificate of enforceability, a first- instance decision was made adopting the request;
3. at the request of an enforcement debtor for abrogating an enforceable document, a first- instance decision has been made adopting the request;
4. a first-instance decision has been made ordering that enforcement is inadmissible. At the proposal of an enforcement debtor, the court may fully or partially, delay enforcement in cases where there are particularly justifiable reasons exist for it, such as severe forms of health and social vulnerability. The delay of enforcement referred to in paragraph 1 of this Article shall be conditioned by depositing a surety. Delay of Enforcement at the Proposal of Third Person Article 72 The court may, at the proposal of a third person who initiated a civil procedure, under Article 67, paragraph 4 of this Law, delay enforcement in the form of a ruling, if it estimates that such a person would suffer a substantial damage and order to the third person to deposit a surety within eight days from the day of service of the ruling. The court may, at the proposal of a third person who initiated a civil procedure, under Article 68, paragraph 1 of this Law, delay enforcement in the form of a ruling, if it estimates that such a person would suffer a substantial damage and order to the third person to deposit a surety within eight days from the day of service of the ruling. If the court delays the enforcement in line with paragraph 1, i.e. paragraph 2, of this Article with the condition of depositing a surety, the court shall set the amount of the surety taking into account all circumstances of the particular case. Deciding about Proposal of Enforcement Debtor or Third Person to Delay Enforcement Article 73 The court shall decide about a proposal of enforcement debtor to delay enforcement within five days from the day of receiving the proposal. The court shall service the ruling adopting the proposal of enforcement debtor or third person for delaying enforcement to the enforcement debtor, enforcement creditor, third

person and public enforcement officer, if it is the public enforcement officer who implements the enforcement. Lodging of the proposal of enforcement debtor or third person for delaying enforcement shall not prevent further implementation of enforcement. Complaint against the ruling deciding on the proposal to delay enforcement may be lodged to the panel of the same court. Enforcement Delay Period Article 74 If enforcement is delayed at the proposal of the enforcement creditor, the court, i.e. public enforcement officer, shall delay enforcement for the period proposed by the enforcement creditor, and at most three times, provided that the total time of delay may not be longer than one year. If it was the enforcement creditor who lodged the proposal to delay enforcement in case when the law stipulates that enforcement shall be requested within a certain deadline, the enforcement cannot be delayed for the period exceeding that deadline. If enforcement is delayed at the proposal of enforcement debtor referred to in Article 71, paragraph 1 of this Law, the court may delay enforcement until the final termination of civil or other procedure. If enforcement is delayed at the proposal of an enforcement debtor referred to in Article 71, paragraph 2 of this Law, the court may delay enforcement only once for the period that cannot exceed 90 days. Satisfaction of Claim in Instalments Article 75 Parties may agree that a claim is satisfied in instalments. Implementation of enforcement shall be delayed until the expiry of the deadline set in the agreement on satisfaction of claim in instalments. Continuation of Delayed Enforcement Article 76 At the proposal of the enforcement creditor, enforcement procedure shall be continued even before expiry of the deadline that it was delayed for, provided that the enforcement creditor makes it probable that reasons for the delay have ceased or if he/she deposits a surety. Termination of Enforcement Article 77 In addition to other cases stipulated in this Law, enforcement shall be terminated ex officio also where an enforceable document is cancelled, altered, annulled or abrogated by a final decision, i.e. if a certificate of enforcement was cancelled. Enforcement shall be terminated, if during the enforcement procedure, as long as enforcement is not implemented, evidence are collected about circumstances indicating that claim has ceased due to the ruin of the asset subject to enforcement, death of a natural person being a party without heirs, or dissolution of the legal entity that does not have legal successor, set-off of claims, and in other similar cases.

Decision on terminating enforcement shall cancel all implemented enforcement actions, if the acquired rights of third parties are not affected thereby. X. COUNTER-ENFORCEMENT Reasons for Counter-Enforcement Article 78 When enforcement is implemented, an enforcement debtor may request from the court, in the form of a petition for counter-enforcement, to oblige an enforcement creditor to return what he received through enforcement, if:

1. enforceable document is cancelled, altered, annulled or abrogated by a final decision;
2. during the enforcement procedure, he voluntarily satisfied a claim of the enforcement creditor;
3. writ of enforcement is cancelled or altered by a final decision;
4. it is determined by a final court decision that enforcement is inadmissible. A petition for counter-enforcement may also be lodged by a third person who proves his/her right on the asset subject to enforcement that prevents enforcement by a final court decision that declares enforcement as inadmissible. Petition for counter-enforcement due to the reasons referred to in items 1, 3 and 4 of paragraph 1 of this Article may be lodged within 15 days from the day of servicing the decision to an enforcement debtor, and due to the reasons referred to in item 2, paragraph 1 of this Article, within 15 days from the day of terminating enforcement procedure. Enforcement debtor cannot satisfy his claim in a civil procedure prior to expiry of the deadlines referred to in paragraph 3 of this Article. Procedure based on Petition for Counter-Enforcement Article 79 The court shall submit a petition for counter-enforcement to an enforcement creditor and order him to make a statement thereon within five days from the day of receiving it. By a writ of counter-enforcement, the court shall order to an enforcement creditor to return to the enforcement debtor, within five days, what he has received through enforcement and in the same write the court shall order enforcement for the purpose of satisfaction of that claim if the enforcement creditor does not return voluntarily to the enforcement debtor what he/she received through enforcement. The writ referred to in paragraph 2 of this Article shall be enforced by a public enforcement officer. Complaint against the writ referred to in paragraph 2 of this Article shall withhold its enforcement, only it the enforcement creditor deposits a surety along with the complaint at least in the amount of the claim. If enforcement is implemented for the purpose of collecting monetary claim, the court shall, at the petition of the enforcement debtor order the payment of default interest at the stipulated rate on the amount of monetary assets that the enforcement was implemented on from the day of lodging the petition for counter-enforcement to the day of returning the assets. Impossibility to Have Counter-Enforcement Article 80

Petition for counter-enforcement shall not be adopted if the return is requested for asset, with respect to which such material or legal changes have occurred making the return impossible. In the case referred to in paragraph 1 of this Article, enforcement debtor may exercise his/her right to damages in a civil procedure also before the expiry of the deadline for lodging the petition for counter-enforcement. A. ENFORCEMENT TO SATISFY MONETARY CLAIM XI. ENFORCEMENT ON MOVABLES

1. Exemptions from Enforcement and Enforcement Actions Exemptions from Enforcement Article 81 The following cannot be asset of enforcement:

1. clothing, footwear, undergarment and other things for personal use, bed linen, utensils, home appliances, furniture necessary to the enforcement debtor and members of his household;
2. food and fuel needed by the enforcement debtor and members of his household for three months;
3. cash of enforcement debtor who has regular monthly earnings up to the monthly amount exempted from the enforcement according to the law, in proportion to the time remaining until the next earnings;
4. decorations, medals, certificates of war service and other marks of honour and awards, personal correspondence, manuscripts and other personal documents of the judgment debtor, as well as family photographs;
5. appliances that are necessary to a disabled person for performing his life functions;
6. postal delivery or postal money order directed to the enforcement before delivered to him/her. Enforcement Actions Article 82 Enforcement on movables shall be implemented by taking inventory and appraisal of assets, by sale of assets and satisfaction of the enforcement creditor from the amount obtained through the sale of assets.

2. Inventories and Appraisal of Assets Notification of Inventory Article 83 Immediately before starting the inventory, a public enforcement officer shall service on the enforcement debtor the writ of enforcement and shall invite him/her to pay the amount the enforcement is ordered for, together with interest and costs. If it was not possible to service a writ of enforcement on the enforcement debtor on the occasion of taking of inventory, it shall be left at the place where inventory is taken. Enforcement creditor shall be informed about the time and place of taking inventory, if so requested. Absence of parties shall not prevent the inventory to take place.

A party not attending the inventory shall be informed about the taken inventory. Assets subject to Taking of Inventory Article 84 Inventory shall be taken of the assets in possession of an enforcement debtor, as well as of his/her assets in possession of enforcement creditor or third persons. If a third person fails to inform a public enforcement officer about his rights on movable asset in possession of judgment debtor that is subject to enforcement and fails to prove his rights thereon, it shall be considered that such rights of third person do not exist and that the enforcement debtor is the owner of asset in his/her possession. Scope of Inventory Article 85 Inventory shall be taken of so many assets as is required to satisfy the claim of enforcement creditor and enforcement costs. Inventory shall be primarily taken of assets that a note has not been made regarding the existence of any right that would prevent enforcement and of assets that can be most easily converted into cash. During the inventory, statements and proofs of parties and third persons about the existence of any right referred to in paragraph 2 of this Article shall be taken into consideration. Enforcement on another asset, and not on the one included in the inventory at the proposal of enforcement creditor, may be subsequently implemented, if there is a significant disproportion between the value of that asset and the amount of the claim. Safekeeping of Assets Entered in the Inventory Article 86 A public enforcement officer shall decide on the manner of safekeeping or storing assets entered in the inventory. Enforcement creditor may request registration of the acquired lien in accordance with law. The assets entered into inventory that are left to the enforcement debtor for safekeeping shall be clearly labelled as entered into the inventory. Risk of ruin or damage of assets given to the enforcement creditor for safekeeping shall be borne by the enforcement creditor, unless ruin or damage is caused by force majeure. Cash, securities and valuables shall be delivered to a public enforcement officer. Other assets of higher value shall be delivered to a public enforcement officer, if they are suitable for such a manner of safekeeping. Prohibition to Dispose of Inventoried Assets Article 87 It shall be prohibited to dispose of assets entered into inventory. The prohibition referred to in paragraph 1 of this Article shall be entered in the writ of enforcement, as well as a warning to the enforcement debtor about criminal-law consequences of acting contrary to the prohibition.

Effect of Inventory Article 88 Through inventory the enforcement creditor shall acquire lien on the assets entered into inventory. When the inventory is taken for the benefit of several enforcement creditors, the seniority order of lien acquired through inventory or note in the minutes on inventory shall be determined based on a day when the enforcement petition is received, and if enforcement petitions are received on the same day, their lien shall have the same seniority order. If the enforcement petition is sent by a registered mail, the day of delivering it to a post office shall be considered as a day of receiving it by a public enforcement officer. Unsuccessful Inventory Article 89 If during the inventory, assets that may be subject to enforcement are not found, a public enforcement officer shall inform thereof a judgment creditor who did not attend the process of taking inventory. Within 30 days from the day or receiving the notification on unsuccessful inventory, i.e. from the day of unsuccessful inventory he/she attended, enforcement creditor may propose that the inventory is taken again. Public enforcement officer may take the inventory again also without the proposal of the enforcement creditor. If enforcement creditor fails to propose within the deadline referred to in paragraph 2 of this Article for the inventory to be taken again or if, during the repeated inventory no assets are found that could be subject to enforcement, the enforcement shall be terminated. Appraisal Article 90 Appraisal of assets may also be done simultaneously with the taking of inventory. Appraisal of assets shall be done by public enforcement officer through an expert he/she appoints, and it can also be done through obtaining the report on price from relevant authorities and institutions. Enforcement creditor and enforcement debtor may by an agreement determine the value of assets. Minutes of Inventory and Appraisal Article 91 Minutes shall be made of inventory and appraisal. The minutes shall, inter alia, particularly include individually inventoried assets with their appraised value and entries with statements of parties and participants in the procedure, as well as statements of third persons regarding the existence of the right preventing the enforcement. Note instead of Inventory

Article 92 If, upon the inventory, enforcement is ordered on inventoried assets for satisfaction of another claim of the same enforcement creditor or for satisfaction of claim of another enforcement creditor, inventory and appraisal of such assets shall not be repeated, but a note shall be made to the minutes including data from a subsequent writ of enforcement. 3. Sale of Assets Time of Sale Article 93 The sale of inventoried assets shall be carried out after a writ of enforcement becomes final, unless an enforcement debtor proposes or accepts at the proposal of enforcement creditor that the sale is done earlier, or if those are perishable assets, or if there is a danger from significant reduction of the value of inventoried assets. At least 15 days must pass between the day of taking inventory and the day of sale. Manner of Sale Article 94 Sale of assets shall be done by verbal public auction or direct agreement. A public enforcement officer shall determine the manner of sale of assets, taking into consideration that the highest possible conversion into cash of asset is obtained. The sale through public auction shall be ordered especially in case of assets of higher value, and it may be expected that the assets shall be sold at a price higher than the appraised value. Enforcement creditor and enforcement debtor may, during the entire procedure, agree on the sale through direct agreement and conditions of such a sale. Contract of sale by direct agreement shall be concluded between the buyer on one side and public enforcement officer or person performing commission contract activities, on the other side. The sale of assets shall be published in mass media outlets at the latest 15 days prior to the day of holding a hearing for public sale. Enforcement creditor and enforcement debtor shall be informed about a place, day and hour of the sale of assets. Sale price Article 95 Inventoried assets cannot be sold below the appraised value at the first auction or within the deadline that a public enforcement officer has determined for the sale by direct agreement. Parties and lienors may reach an agreement, by way of statement issued to the minutes before the public enforcement officer carrying out the enforcement procedure, that inventoried assets may be sold at the first public auction also at the price below the appraised value. If at the first public auction, the price in the amount of the appraised value is not reached, a public enforcement officer shall determine a second public auction, to take place within a period that cannot be shorter that 15 nor longer that 30 days, at which assets can be sold below the appraised value, but not below one third of that value.

If at the second public auction, the price in the amount of the appraised value is not reached, a public enforcement officer shall determine a second public auction, to take place within a period that cannot be shorter that 15 nor longer that 30 days, at which assets can be sold below the appraised value, but not below the claim of the enforcement creditor. If the appraised value is lower than the amount of the claim and at the second public auction the sale was not successful, assets can be sold below the appraised value, without limitations, with a prior consent of the judgment creditor and lienor. If there was no sale at the repeated auction, the public enforcement officer shall invite enforcement creditor to state promptly, and no later than within five days, whether he proposes a sale by direct agreement. If the sale by direct agreement is started after three failed public actions, the sale price shall be subject to agreement between parties to the contract on sale and no consent shall be requested thereto from the enforcement debtor. Obligations and Rights of the Buyer Article 96 Buyer shall be obliged to pay the price and take over the assets immediately after the completion of public auction or sale by direct agreement. Public enforcement officer may deliver the assets to the buyer also in case when he did not pay the price, if a judgment creditor accepts it, at his own risk, within the amount he would get from the reached price. By taking over the assets, the buyer shall become their owner. 4. Satisfaction Satisfaction of Enforcement Creditor in case of a Single Enforcement Creditor Article 97 If only one enforcement creditor is to be satisfied from the sale price, public enforcement officer shall order, in the form of a conclusion, without holding a hearing, the satisfaction using the amount obtained from the sale od assets and seized money in the following order: enforcement procedure costs, costs determined in enforceable document, interest up to the day of conversion of assets into money and principle claim. The amount of the sale price remaining after the satisfaction referred to in paragraph 1 of this Article shall be given to the enforcement debtor, if there are no obstacles to that effect. Satisfaction of Enforcement Creditor in case of Several Enforcement Creditors Article 98 Several enforcement creditors shall be satisfied in the order in which they acquired lien, unless the law stipulates prior rights for satisfaction of certain claims. Enforcement creditors of the same rank, who cannot be fully satisfied, shall be satisfied commensurate with the amounts of their claims. Enforcement procedure costs, costs based on enforceable document, and interest shall have the same rank for satisfaction as the principal claim. When adopting the conclusion on satisfaction, a public enforcement officer shall take into consideration only those claims for which a writ of enforcement has become final until the day of selling the inventoried assets.

The amount of the sale price remaining after the satisfaction shall be given to the enforcement debtor, if there are no obstacles to that effect. Termination and Deletion of Registered Lien Article 99 After the payment of sale price, the buyer referred to in Article 96 of this Law may request the deletion of lien on the basis of a conclusion determining that the sale price has been paid. Satisfaction by Awarding Assets to Enforcement Creditor Article 100 If it was not possible to sell an asset at the second hearing for public auction or by direct agreement within the deadline determined by a public enforcement officer, at the proposal of the enforcement creditor, a public enforcement officer shall award the asset to the enforcement creditor. In case referred to in paragraph 1 of this Article the enforcement creditor shall be considered satisfied in the amount corresponding to the amount of appraised value of the asset. Application of Provisions on Enforcement on Immovables Article 101 Provisions of Articles 177, 190, 191, and 197 of this Law shall apply on enforcement on movables for the purpose of satisfying monetary claim. XII. ENFORCEMENT AGAINST MONETARY CLAIMS OF AN ENFORCEMENT DEBTOR

1. Exemption from Enforcement and Enforcement Restrictions Exemptions from Enforcement Article 102 The following shall be exempted from enforcement:

1. Funds received on the basis of legal subsistence, compensation of damage resulting from impaired or diminished health or loss of work ability and due to the loss of subsistence resulting from a death of subsistence provider;
2. Funds received on the basis of benefits due to bodily impairments in accordance with disability insurance regulations;
3. Funds received on the basis of social assistance;
4. Funds received on the basis of temporary unemployment;
5. Funds received on the basis of child allowance;
6. Funds received on the basis of scholarships and assistance to pupils and students;
7. Compensation for work of a convicted person serving a sentence of imprisonment, except for claims on the basis of legal subsistence, as well as claims resulting from compensation of damage caused by crimes committed by a convicted person;
8. Other claims where law prohibits the transfer thereof. Enforcement Restrictions

Article 103 Enforcement against wages and pensions, as well as wage replacement compensation may be ordered and implemented only up to the amount corresponding to one-half of such funds. Enforcement may be implemented against the minimum wage that enforcement debtor receives in accordance with the law up to the amount corresponding to one-third of such wage. Enforcement against the funds received by disabled wartime and peacetime veterans resulting from disability benefits, orthopaedic device allowances and disability allowances may be implemented only for claims arising from legal subsistence, compensation for damage resulting from impaired or diminished health or loss of work ability and due to loss of subsistence resulting from a death of subsistence provider, up to the amount corresponding to one-half of such funds. Enforcement against funds received on the basis of monetary annuity income, lifelong annuity income, lifelong sustenance contract, as well as funds received on the basis of life insurance contracts, may be implemented only on such part that exceeds the highest amount of permanent social assistance benefit. 2. Enforcement Actions Implementation of Enforcement Article 104 Enforcement against monetary claims shall be implemented by way of a ban and transfer of claims, unless otherwise stipulated for specific cases under this Law. Enforcement petition may request that only a ban on monetary claims is ordered. In the case referred to in paragraph 2 of this Article, the enforcement creditor may file a petition for transfer of claims, within 15 days following the day on which he/she was serviced the ruling imposing a ban on monetary claim (hereinafter referred to as the ruling on ban), i.e. following the day when notice on statement of debtor of the enforcement debtor was serviced to him/her. If the judgment creditor fails to submit such petition referred to in paragraph 3 of this Article, the enforcement shall be terminated. Scope of Enforcement Article 105 Ban on and transfer of monetary claims may be ordered and implemented only in the amount required to satisfy claim of the enforcement creditor, unless indivisible claim is in question. If several enforcement creditors request enforcement against the same divisible claim, the ban on and transfer of the claim shall be ordered in corresponding amounts, for the benefit of each judgment creditor separately. 3. Ban on Claims Effect Article 106

The ruling on ban shall prohibit to a debtor of the enforcement debtor to satisfy the claim for which the ban is ordered to the enforcement debtor, while the enforcement debtor shall be prohibited from collecting such claim or otherwise dispose thereof. The ban on claim shall also cover disposal over lien contracted for claim under ban. It shall be deemed that the ban on claim is implemented on the day of service of the ruling on the ban on claim to the debtor of the enforcement debtor. Through a ban on claim, the enforcement creditor shall acquire lien on the claim of the enforcement debtor, if such a claim is under the ban based on his/her petition. Debtor of the enforcement debtor shall have no right to lodge a complaint against the ruling on ban. Lien on Interest Article 107 Lien acquired on claim having an incurring interest shall also apply to interests due after the ban. Lien Priority Article 108 Lien priority among several enforcement creditors shall be established according to the day of receipt of the enforcement petition. If the enforcement petition is sent by a registered mail, the day of delivering it to a post office shall be considered as a day of receiving it by a public enforcement officer. If the public enforcement officer receives petitions for enforcement of several enforcement creditors on the same day, their respective liens shall have the same level of priority. In the case referred to in paragraph 3 of this Article, the claims shall be satisfied proportionately, if they cannot be satisfied in full. If, due to implementation of enforcement on monetary, liens and other rights acquired before the opening of the proceedings cease to have effect, the priority order in satisfying such rights shall be established in line with the regulations governing priority ranking outside of the enforcement proceeding. Statement of Debtor of the Enforcement Debtor Article 109 Upon a proposal of an enforcement creditor, a public enforcement officer shall order to a debtor of the enforcement debtor to make statement, within a deadline established by the public enforcement officer, on whether he/she accepts the banned claim and in what amount and whether he/she is willing to settle it, as well as whether his obligation to settle such claim is subject to conditions precedent for some other undertakings. Enforcement creditor may combine the petition for statement of the debtor of the enforcement debtor with the enforcement petition or provide it under a separate motion following such petition but no later than before the transfer is executed. The statement of the debtor of the enforcement debtor shall be serviced on the enforcement creditor without any delay. Liability of a Debtor of the Enforcement Debtor

Article 110 Debtor of the enforcement debtor shall be liable to an enforcement creditor for damage caused by failure to make statement or for making false or incomplete statement. Public enforcement officer shall warn the debtor of the enforcement debtor of such liability. Ban on Claim Secured by Lien Entered in the Register Article 111 Ban on claim secured by lien entered in the register shall be implemented through entering of the ban in that register. The entering is done ex officio, along with note that the ban, on the basis of which a lien was acquired on the claim, is ordered to satisfy claims of the enforcement creditor. If there are several enforcement creditors, the priority order of their claims shall be established according to the time of registration. 4. Transfer of Claims Types of Transfers Article 112 Claim on which a ban has been imposed shall be transferred to the enforcement creditor upon his/her petition for collection or instead of payment. If the enforcement creditor fails to define explicitly the type of transfer of claim referred to in paragraph 1 of this Article, it shall be deemed as the petition is made for collection. Conclusion on Transfer Article 113 Upon a proposal of the enforcement creditor, the public enforcement officer shall make a conclusion on transfer of claim to the enforcement creditor. The conclusion on transfer shall invite the debtor of the enforcement debtor to deposit the amount of the debt with the public enforcement officer by way of payment to a designated account and to notify the public enforcement officer thereof. If the enforcement creditor has proposed for the debtor of the enforcement debtor to make statement on the claim against which the enforcement is proposed, the public enforcement officer shall render a conclusion on the petition for transfer upon expiry of the five-day period following the day when the notification on statement of the debtor of the enforcement debtor was serviced on the enforcement creditor. Special Conditions for Transfer of Claims Partially Exempt from Enforcement Article 114 The claim partially exempt from enforcement or already under ban for the benefit of other persons shall be transferred after the enforcement creditor deposits surety that will transfer the part exempt from enforcement to the public enforcement officer. Special Conditions for Transfer of Divisible Claims Article 115

Transfer of monetary claim may be ordered and implemented only in the amount required to satisfy claim of the enforcement creditor. If several enforcement creditors request enforcement against the same divisible claim, the transfer shall be ordered in corresponding amounts, for the benefit of each enforcement creditor separately. Undertakings of the Enforcement Debtor and Enforcement Creditor Article 116 Within the deadline set by the public enforcement officer, and upon request of the enforcement creditor to whom the claim is transferred, enforcement debtor shall be obliged to provide explanations required by the enforcement creditor in order to satisfy the claims and to transfer documents related to the claim through the public enforcement officer. The enforcement creditor, to whom a part of the claim is transferred, shall be obliged, if so requested by the enforcement debtor, to deposit surety within the deadline set by the public enforcement officer, in order to guarantee that upon the satisfaction of claim he/she will return documents related to such a claim. The public enforcement officer shall, upon a proposal of the enforcement creditor, implement enforcement against the enforcement debtor aimed at delivery of documents, if he fails to do so directly. Delivery of documents in the possession of third person that is refusing or avoiding submitting them, may be requested by the enforcement creditor trough a court claim, if the enforcement debtor would have such right. Public enforcement officer shall enter a note on the document that is delivered to the enforcement creditor, indicating that the transfer of claim was done for the claim for which enforcement is imposed. Depositing Claims Article 117 Debtor of the enforcement debtor served the writ of enforcement or conclusion on transfer of claim shall meet his/her obligation by depositing money with the public enforcement officer implementing the enforcement. If other persons, in addition to the enforcement creditor, also present some right concerning the transferred claim, the debtor of the enforcement debtor may deposit with the public enforcement officer the entire amount of such claim or only due amount on behalf of such persons. In the case referred to in paragraph 2 of this Article, the enforcement creditor may invite the debtor of the enforcement debtor through the public enforcement officer to deposit the amount of transferred claim with such public enforcement officer. 5. Transfer for Collection purposes Authorisations of the Enforcement Creditor Article 118 Enforcement creditor shall be authorised by way of the transfer of claims for collection purposes to request from the debtor of the enforcement debtor the payment of the amount stated in the conclusion on transfer, if such amount is due, to carry out all actions necessary in order to protect and implement transferred claim and to use rights related to the lien given as a security for such claim.

Enforcement creditor shall not be authorised by way of the transfer of claim for collection purposes to conclude a settlement against the enforcement debtor, to write-off debt of the debtor of the enforcement debtor or to otherwise dispose with transferred claim, or to enter into a contract with the debtor of the judgment debtor stipulating that a selected court is to make a ruling concerning the claim, if such a claim is disputable. The debtor of the enforcement debtor may lodge a complaint to the enforcement creditor to whom the claim is transferred for collection purposes that he/she would otherwise be able to lodge to the enforcement debtor. Ceding of transferred claim by the enforcement debtor after the transfer shall have no legal effect over rights acquired by the enforcement creditor by way of transfer. Once the claim is transferred to the account of the public enforcement officer, he/she shall be obliged to transfer funds to the enforcement creditor immediately as they become due. Transfer for Collection of Claim Entered in the Public Register Article 119 Transfer for collection of claim entered in the public register and other public records shall be registered ex officio. Conditionality on the Obligation of Debtor of the Enforcement Debtor by Hand-Over of Assets Article 120 If the obligation of the debtor of the enforcement debtor to pay the claim is conditioned by the obligation of the enforcement debtor to hand over certain asset that is in the possession of the enforcement debtor, and such obligation is established by a final judgment, public enforcement officer shall, upon a proposal of the enforcement creditor to whom the claim is transferred for collection, decide that the enforcement debtor shall hand over that asset to the public enforcement officer in order for it to be handed over to the debtor of the enforcement debtor. Upon a proposal of the enforcement creditor, public enforcement officer shall implement enforcement, aimed ad handing over the asset, against the enforcement debtor who failed to hand over the asset within the specified deadline. Notice to the Enforcement Debtor concerning the Court Claim for Collection of the Transferred Claim Article 121 The enforcement creditor who lodged a court claim for collection of the transferred claim shall be obliged promptly to notify the enforcement debtor on the initiated litigation, and shall otherwise be liable to the enforcement creditor for the damage inflicted by the failure to do so. Delay in Collection of Transferred Claim Article 122 The enforcement creditor that fails to take proper care over the collection of the transferred claim shall be liable for damage inflicted thereby on another enforcement

creditor whose claim is the reason for claim of the enforcement debtor being banned or shall be liable for damage inflicted on the enforcement debtor. In the case referred to in paragraph 1 of this Article, public enforcement officer may, upon a proposal of another enforcement creditor, cancel the conclusion on transfer of claim to a defaulted enforcement creditor and transfer the claim to another enforcement creditor. Satisfaction of the Judgment Creditor Article 123 Enforcement creditor to whom the claim is transferred for collection purposes shall be satisfied in the amount in which the claim was collected. Collection of the Amount through the Claim of the Enforcement Creditor Article 124 Enforcement creditor, who collected more from the transferred claim than his claim amounts to, shall be obliged to deposit such excess collected amount with the public enforcement officer. Public enforcement officer shall hand over such excess collected amount to other lienors and enforcement debtor, if they are entitled to receive them. Public enforcement officer shall return deposited surety to the enforcement creditor who deposited the excess collected amount Transfer instead of a Payment Article 125 Claim under ban shall be transferred instead of a payment to the enforcement creditor up to the transferred amount, having the effect of ceding of claim with compensation. If the transferred claim is secured by a lien entered in register, public enforcement officer shall, ex officio, transfer right of the enforcement debtor to the enforcement creditor, and delete the lien registered for the benefit of the enforcement debtor. Enforcement creditor to whom the claim was transferred instead of the payment shall be considered satisfied by way of such transfer in the amount of the claim. Provision of paragraph 3 of this Article shall be without prejudice to rules on liability of the enforcement debtor for authenticity and collectability of transferred claim. 6. Special Provisions on Enforcement against Wages and Other Permanent Monetary Earnings Writ of Enforcement against Wages Article 126 The writ of enforcement against a wage shall impose a ban on certain part of the wage and shall order to a state authority, legal entity or another employer paying the wage to the enforcement debtor (hereinafter referred to as the employer) to pay or pay in the future to the enforcement creditor the monetary amount corresponding to the ordered enforcement. The employer shall be obliged to pay the amount ordered under the enforcement to the account of the public enforcement officer, who in turn shall be obliged to transfer such funds within one day to the account of the enforcement creditor.

For the purpose of this Law, the wage shall consist of all labour-based earnings of the employee. Wage Increase Article 127 The writ of enforcement against wage shall also refer to a wage increase occurring after the serving of the writ of enforcement. Subsistence Right of Several Persons Article 128 If several persons have the right to statutory subsistence, i.e. the right to annuity income for loss of subsistence resulting from death of the subsistence provider over the same enforcement debtor, and if the total amount of their claims exceeds the part of the wage that can be subject to enforcement, the enforcement shall be ordered and implemented for the benefit of each such enforcement creditor commensurate to the level of their claims. If after the commenced implementation of enforcement against the wage or other permanent monetary earning a new petition for enforcement against claims referred to in paragraph 1 of this Article is lodged, public enforcement officer shall amend previously issued writ of enforcement in terms of paragraph 1 of this Article and shall determine the amount to be paid in future to individual enforcement creditors. In the case referred to in paragraph 2 of this Article, the writ of enforcement shall be also serviced on the earlier enforcement creditor, who may lodge a complaint against such a writ. Place of Payment Article 129 Enforcement creditor, i.e. public enforcement officer, may collect claim for which cashless payment is not stipulated directly at the cashier’s desk where the wage of the enforcement debtor is paid. Enforcement creditor shall be entitled to request the withheld amount to be paid via postal service, at the stated address, after deduction of postal service costs. Change of Employer Article 130 When the employment of the enforcement debtor is terminated, the writ of enforcement against the wage shall also have effect in relation to another employer with whom the enforcement debtor afterwards enters into employment, from the day of the service of the writ of enforcement against the wage on such employer. The employer with whom the enforcement debtor is no longer employed shall be obliged to deliver without any delay, via registered mail, the writ of enforcement against the wage to the employer with whom the enforcement debtor entered into employment and shall notify thereof the public enforcement officer implementing the writ of enforcement. If the employer with whom the enforcement debtor is no longer employed is not aware of the new employer of the enforcement debtor, he/she shall promptly inform thereof the

public enforcement officer, and the public enforcement officer shall notify thereof the enforcement creditor. Liability for Failure to Withhold and Pay-out Due Instalments Article 131 The public enforcement officer shall, upon a proposal of the enforcement creditor, order by way of a ruling to the employer to satisfy all instalments that he/she failed to withhold and pay-out against the wage under the writ of enforcement. The enforcement creditor may lodge the proposal referred to in paragraph 1 of this Article until the enforcement proceedings are finalised The employer who failed to act in accordance with the writ of enforcement against the wage or failed to act in accordance with Article 130 of this Law shall also be liable for damage incurred therefore by the enforcement creditor. Ban upon Consent of the Enforcement Debtor Article 132 Ban imposed on the wage of the enforcement debtor upon his consent (hereinafter referred to as the garnishment) shall have a legal effect of a writ of enforcement against a wage only if issued before the adoption of the writ of enforcement. Notwithstanding provisions of paragraph 1 of this Article, the garnishment shall have no effect on implementation of the enforcement against the wage in order to satisfy claims resulting from the legal subsistence, damages resulting from impaired or diminished health, i.e. loss of work ability or due to loss of subsistence resulting from death of the subsistence provider. Enforcement on Other Funds Received on a Permanent Basis Article 133 Provisions of Articles from 126 to 132 of this Law shall apply accordingly to enforcement against funds received from social insurance and other monetary funds received on a permanent basis. Application of Provisions Article 134 Provisions of Articles from 102 to 125 of this Law shall apply accordingly to enforcement against funds received from social insurance and other monetary funds received on a permanent basis, unless otherwise stipulated by provisions of this sub-chapter. 7. Enforcement for Collection against Savings Deposit and Account Enforcement for Collection against Savings Deposit Article 135 Enforcement for Collection against Savings Deposit shall be implemented through ban and payment.

Enforcement creditor who proposes enforcement for collection against savings deposit with a bank shall be obliged to state data of the savings deposit, as well as the account number and name of the bank where the enforcement debtor holds the savings deposit. If the enforcement creditor fails to submit required data referred to in paragraph 2 of this Article, public enforcement officer may request data from the bank holding the savings deposit, which must be stated by the enforcement creditor in his petition. The bank referred to in paragraph 3 of this Article shall be obliged to provide promptly the requested data to the public enforcement officer and must not notify the enforcement debtor that such data is being requested. It shall be deemed that the ban on savings deposit is executed on the day and hour of the service of the ruling on the ban to the bank holding the savings deposit. If the enforcement debtor has a term deposit with a bank, the bank shall, on the day of expiry of the contract on term deposit, i.e. on the day of early termination of term deposit, transfer such funds to the account of the enforcement debtor, for the purposes of enforcement. Public enforcement officer shall service the ruling on the ban against the savings deposit to the enforcement debtor only after the bank that holds his/her savings deposit notifies the public enforcement officer that the ban was implemented. Satisfaction of the enforcement creditor shall be implemented in accordance with Articles 104 to 125 of this Law. Enforcement against Funds in the Account of the Enforcement Debtor Article 136 Enforcement against the funds in the account of the enforcement debtor shall be implemented through a ban and payment. Enforcement creditor who proposes enforcement against the funds in the account of the enforcement debtor shall be obliged to provide the data about the account in the bank if he has them. Legal entity authorized for implementation of the forced collection against the monetary funds kept in the account of the enforcement debtor (hereinafter referred to as: organization for forced collection), shall be obliged to act upon request of public enforcement officer in order to deliver the account numbers of the physical entity as an enforcement debtor and shall not inform the enforcement debtor that the data are requested. Public enforcement officer shall service the ruling on the ban to the bank where the account of the enforcement debtor is held and the ban on the account shall be considered implemented on the day and hour of delivery of such ruling. Public enforcement officer shall service the ruling on the ban against the funds in the account of the enforcement debtor to the enforcement debtor only after the bank that holds his/her account notifies the public enforcement officer that the ban was implemented. Satisfaction of the enforcement creditor shall be implemented in accordance with Articles 104 to 125 of this Law. Implementation of enforcement in line with this Article shall not refer to the monetary funds that are in the account of the enforcement debtor on the basis of wage, compensation of wage and pension that are subject to provisions of Articles 103 and 126 of this Law. Statement of enforcement creditor in case that a writ of enforcement is not implemented Article 136a

If within 45 days from the day of service on the bank of the ruling on ban against the funds in the account of the enforcement debtor the payment from the funds in the account of the enforcement debtor has not started, public enforcement officer shall invite the enforcement creditor, within five days, to make his/her statement regarding the further procedure and give him a deadline for making such statement which cannot be longer than 15 days. If the enforcement creditor fails to make the statement referred to in paragraph 1 of this Article within the set deadline, public enforcement officer shall render a ruling to terminate enforcement procedure. 8. Enforcement against Shares and Bonds of Old Foreign Currency Savings Enforcement Actions Article 137 Enforcement against shares and bonds of old foreign currency savings shall be implemented by way of registration and acquisition of lien, seizure, appraisal, sale and satisfaction of the enforcement creditor. Enforcement against Shares Article 138 Upon rendering of the writ of enforcement against shares, the shares subject to enforcement shall be seized. The writ shall be serviced on the enforcement creditor, enforcement debtor and Central Depositary Agency. Enforcement creditor shall acquire lien over seized shares through registration of writ of enforcement. From the time of seizure the enforcement debtor shall not dispose of the seized shares. Upon receipt of the ruling on seizure or upon request of the enforcement creditor, Central Depository Agency shall promptly register the lien on shares. From the moment of the registration third parties cannot act in good faith concerning the existence of lien of the enforcement creditor. Sale and Appraisal of Shares Article 139 Value of shares shall be established by the public enforcement officer. If a share is listed on the stock exchange, its value shall be established as the average price of share on the stock exchange over the last 30 days, based on the stock-exchange report. If share is not listed at the stock exchange or the value cannot be established in the manner referred to in paragraph 2 of this Article, the public enforcement officer may engage an expert person to appraise the value. If shares are traded on the stock exchange those shall be converted into cash on the stock exchange. Shares listed on the stock exchange shall be sold through an authorised securities market participant as determined by the enforcement creditor or public enforcement officer. Shares can also be sold in another manner in line with the law governing trade in shares. Provisions of Articles 90 to 101 of this Law shall apply to appraisal and sale of share, as well as to satisfaction of the enforcement creditor from the achieved price.

Enforcement against Bonds of Old Foreign Currency Savings Article 139a Provisions of Articles 138 and 139 of this Law shall apply to enforcement against bonds of old foreign currency savings. 9. Enforcement against Other Securities Enforcement Actions Article 140 Enforcement against other securities shall be implemented by way of seizure of claims from securities and by transfer. Seizure of Claims Article 141 Seizure of claim based on a security being transferred by endorsement or where such security is required for its realisation, shall be implemented in such manner where public enforcement officer seizes such security from the enforcement debtor. Public enforcement officer shall carry out, on behalf of the enforcement debtor, the legal actions required for safeguarding or exercising rights arising from securities referred to in paragraph 1 of this Article. Transfer of Claims Article 142 If a transfer of claim is based on a security being transferred by endorsement or if it is required for such a security to be submitted in order to be implemented, the transfer of claim shall be implemented once the public enforcement officer places a transfer notice on such security and hands over the security covered by such notice to the enforcement creditor. If a claim based on a security being transferred by endorsement or if the implementation of the claim requires that security is submitted, or if due to any other reason the claim cannot be divided for transfer and implementation, it can be transferred only in its full amount. If the amount referred to in paragraph 2 of this Article exceeds the level of the enforcement creditor’s claim, the claim under ban shall be transferred after enforcement creditor deposits a surety that such excess amount will be transferred to the public enforcement officer. If several enforcement creditors lodged a petition for transfer of claim in different days, public enforcement officer shall transfer the claim to the enforcement creditor who lodged the petition first and if several enforcement creditors lodged the petition on the same day, the claim will be transferred to the enforcement creditor having the highest claim. Provisions of Articles from 118 to 125 of this Law shall apply to transfer of claims arising from securities. 10. Enforcement against Holdings in a Business Organisation Acquisition of Lien and Seizure

Article 143 Enforcement against holdings in a business organization shall be implemented by way of registration and acquisition of lien, seizure, appraisal, sale and satisfaction of the enforcement creditor. The writ of enforcement against holdings in a business organisation organised as a limited liability company, general partnership or limited partnership shall be serviced to the enforcement creditor, enforcement debtor and the registry registering business entities, other legal entities and lien on movable assets. Enforcement creditor shall acquire a lien against holding referred to in paragraph 1 of this Article being subject to enforcement by way of registration of the writ of enforcement. Seizure of holding shall take place simultaneously with the registration referred to in paragraph 2 of this Article. The ruling on seizure shall be serviced on the business organisation referred to in paragraph 1 of this Article being subject to the seizure of holding. From the moment of registration, enforcement debtor cannot dispose with seized holding in a business organisation. Appraisal and Sale Article 144 Appraisal and sale of holding in a business organisation referred to in Article 143 of this Law shall be carried out by applying accordingly provisions of Articles 90 to 101 of this Law. In case of sale of a holding in a limited liability company, public enforcement officer shall also inform members of the company in advance on sale of the holding, inviting them to make a statement within 15 days following the receipt of the notice on whether they are interested in buying the holding. XIII. ENFORCEMENT AGAINST CLAIM FOR HANDING OVER OF MOVABLE ASSETS OR IMMOVABLE PROPERTY

1. General Rules Manner of Implementing Enforcement Article 145 Enforcement against a claim of the judgment debtor concerning the handing over the movable asset or immovable property shall be implemented by a ban on such a claim, by its transfer to the enforcement creditor and sale of asset. The Effect of Transfer Article 146 The transfer of an enforcement debtor’s claim under ban shall have effect of the transfer of monetary claim of the enforcement debtor for collection. Unmatured Claim of the Enforcement Debtor and Court Claim against the Debtor of the Enforcement Debtor Article 147

If a claim of the enforcement debtor is not mature yet, public enforcement officer shall order assets to be handed over upon maturity. After the conclusion on transfer of claim is rendered, enforcement creditor may lodge a court claim against the debtor of the enforcement debtor who is not willing to hand over the assets, requesting the transfer, if he/she does not have any enforceable document concerning the handing over obligation. Application of Provisions on Enforcement against Monetary Claim Article 148 Provisions of Articles 104 to 144 of this Law shall apply accordingly to the enforcement against claim requesting handing over of movable asset or immovable property, unless otherwise stipulated by provisions under this Title. 2. Movable Assets Handing over Assets for Safekeeping Article 149 Conclusion determining the transfer of claim of the enforcement debtor shall order to the debtor of the enforcement debtor to hand over movable assets, subject to the claim, to the public enforcement officer or another person for safekeeping. Provisions of Article 86 of this Law shall apply to proceedings concerning assets referred to in paragraph 1 of this Article. Sale of Assets and Satisfaction of the Enforcement Creditor Article 150 Sale of movable assets, handed over to the public enforcement officer or other person referred to in Article 149, paragraph 1 of this Law, as well as satisfaction of the judgment creditor shall be done in accordance with Articles 93 to 101 of this Law. 3. Immovable Property Handing over to the Enforcement Creditor Article 151 Conclusion determining the transfer of claim of the enforcement debtor shall order to the debtor of the enforcement debtor to hand over movable assets, subject to the claim, to the enforcement creditor. Enforcement creditor shall be obliged to manage the immovable property with due care and diligence of a prudent businessperson, on behalf and for the account of the enforcement debtor, and report to the public enforcement officer, upon his request, about the management. Sale Article 152

Enforcement creditor may, for satisfying his claim, to propose the sale of the immovable property within the deadline that cannot exceed 30 days following the day of handing over of such immovable property. If the enforcement creditor fails to propose timely sale, the enforcement shall be terminated. Application of Provisions on Enforcement against Immovable Property Article 153 Sale of the immovable property, as well as satisfaction of the enforcement creditor, shall be carried out in accordance with Articles 154 to 200 of this Law. XIV. ENFORCEMENT AGAINST IMMOVABLE PROPERTY

1. General Rules Enforcement Actions Article 154 Enforcement against immovable property shall be implemented by registration of the writ of enforcement in the immovable property cadastre, determining the value of immovable property, sale of immovable property, and satisfaction of enforcement creditors from sale proceeds. Evidence of Ownership of the Enforcement Debtor Article 155 Along with the petition for enforcement against immovable property, the enforcement creditor needs to submit an excerpt from the immovable property cadastre as the evidence of immovable property being registered as the ownership of the enforcement debtor. If the right on the immovable property referred to in paragraph 1 of this Article is registered in the immovable property cadastre to another person other than the enforcement debtor, the enforcement creditor shall be obliged to submit such document suitable for the registration of the ownership right of the enforcement debtor. Public enforcement officer may also obtain documents referred to in paragraphs 1 and 2 of this Article, upon a request of the enforcement creditor. In the case referred to in paragraph 2 of this Article the registration shall be done upon a request of the public enforcement officer by the administration authority in charge of registration in the immovable property cadastre. Immovable Property Co-owned by the Enforcement Debtor Article 156 The enforcement shall be ordered on the ideal part of the immovable property being co￾owned by the enforcement debtor. With the consent of the all co-owners, except of the enforcement debtor, the enforcement may be ordered by sale of the entire co-owned immovable property to a third party or one of the co-owners. In the case referred to in paragraph 2 of this Article, other co-owners shall be satisfied from the price achieved in the sale of immovable property before enforcement creditor is

satisfied and before enforcement proceedings costs are covered, commensurate to the value of relevant co-ownership holding. The sale of immovable property shall be without prejudice to the pre-emption right of co- owners. Ordering Enforcement by Other Means or against Other Immovable Property Article 157 Public enforcement officer may order that the enforcement is implemented on another immovable property other than the one being proposed by the enforcement creditor for enforcement or by another means of enforcement if there is a significant disproportion between the value of the immovable property and the amount of claim, while the other immovable property or means of enforcement is sufficient to satisfy the claim. If another means of enforcement is ordered, the registration of the writ of enforcement against the immovable property shall remain in effect until the enforcement creditor’s claim is satisfied. Registration of the Writ of Enforcement Article 158 Writ of enforcement shall be registered in the immovable property cadastre or another adequate registration shall be done in line with the regulations governing registration of rights over immovable property in the immovable property cadastre. Through the registration referred to in paragraph 1 of this Article, the enforcement creditor shall acquire the right to satisfy his/her claim from the immovable property, even in the case that a third party subsequently acquires ownership right over the same immovable property. The enforcement creditor, who did not acquire a lien earlier, shall acquire the right to satisfy his/her claim from the immovable property before persons that acquired the lien or right to satisfaction over such immovable property at a later point. Joining the Enforcement Article 159 After registration of the writ of enforcement no separate enforcement proceeding may be carried out over the same immovable property for satisfaction of another claim of the same or another enforcement creditor. The enforcement creditor for whose claim enforcement on the same immovable property was ordered at a later stage shall join an already opened enforcement proceedings. One can join the opened enforcement proceedings until the adoption of a conclusion on award of the immovable property to the buyer in case of direct agreement on sale, or until the adoption of the conclusion on transfer of immovable property in case of public auction sale. Public enforcement officer shall notify the enforcement creditor, for whose benefit the registration of the writ of enforcement took place earlier, about joining to the enforcement proceedings. Satisfaction of the Lienor Article 160

A lienor who did not propose the enforcement shall also be satisfied in the enforcement proceedings against immovable property. Termination of Lien Article 161 Lien registered on immovable property shall be terminated on the day of handing over the immovable property to the buyer. Buyer of immovable property and lien enforcement creditor may agree for the lien to remain on the immovable property after handing over of the immovable property, while the buyer shall assume debt of the enforcement debtor towards the lien enforcement creditor in such amount that he would be entitled to in the enforcement proceedings. In case referred to in paragraph 2 of this Article, the sale price shall be reduced by the amount of assumed debt. Easements and Property Encumbrances Article 162 Property encumbrances on immovable property shall not be terminated by sale of the immovable property. Sale of immovable property shall terminate neither personal easements nor property encumbrances registered in the immovable property cadastre before rights of lien enforcement creditors and rights for satisfaction of enforcement creditors on whose petition the enforcement was ordered. Personal easements may also be terminated upon a request of the enforcement creditor, with an appropriate compensation. Other personal easements and property encumbrances shall be terminated by sale of the immovable property. Lease of Immovable Property Article 163 Sale of immovable property shall not terminate the lease of such immovable property if a lease contract was concluded and the immovable property handed over to lessee as possession before adoption of a writ of enforcement. Buyer shall enter into the rights and obligations of the lessor. Inspecting Immovable Property Article 164 Public enforcement officer shall allow to a person interested in purchasing the immovable property to inspect immovable property in appropriate time. Exemption from Enforcement on Certain Immovable Property Article 165 Agricultural land of a farmer up to 10 ares cannot be subject of enforcement. Provisions of paragraph 1 of this Article shall not apply to enforcement for realising monetary claims secured by a contract-based lien on immovable property (mortgage)

Manner of Establishing Value Article 166 Public enforcement officer shall start the establishment of value of the immovable property after adoption of the writ of enforcement. Value of the immovable property shall be established at the market price level on the day of appraisal. In the process of establishing the value of the price, the public enforcement officer may request appraisal from an authorised appraiser or findings and opinion of a judicial expert. Reduction of the Appraised Value Article 167 When establishing the value of the immovable property it should be taken into account if such immovable property is worth less because such immovable property continues to keep certain rights even after the sale. Establishing Value Article 168 Value of immovable property shall be established by way of a ruling. 2. Sale of Immovable Property Conclusion on Sale Article 169 Upon establishment of the value of immovable property, public enforcement officer shall adopt a conclusion on sale of immovable property that sets forth the manner of and conditions for sale, as well as time and venue for the sale, hours during day when the immovable property is available for inspection, in the case the sale is carried out by way of public auction. The conclusion on sale shall be published in the media. At its own expense, the party may notify persons engaged in intermediation in sale of immovable property about the conclusion referred to in paragraph 1 of this Article. The conclusion on sale of immovable property shall be delivered to parties, lienors, participants in the proceedings, and persons having registered statutory pre-emption right. From the time of publication of the conclusion on sale until the day of sale, no less than 15 days and no more than 30 day may elapse. Pre-emption Right Article 170 Person having statutory pre-emption right on immovable property subject to enforcement by sale shall have priority in respect of the best bidder, if at the public auction, immediately after its closing, he/she makes statement on buying the immovable property under same conditions. Person holding a contractual pre-emption right shall exercise such right under conditions referred to in paragraph 1 of this Article, if there was no statutory right or the holder of such right failed to use it.

Statement of the Pre-emption Right Holder Article 171 If the immovable property is sold by way of direct agreement, public enforcement officer shall invite holder of the statutory pre-emption right, holder of contractual pre-emption right registered in the immovable property cadastre and enforcement creditor to make statement in writing whether they will exercise such right. Manner of Sale Article 172 Sale of immovable property shall be done by verbal public auction or direct agreement. Public auction for sale of immovable property shall take place in the office of the public enforcement officer, unless otherwise determined by the public enforcement officer. Enforcement creditor and enforcement debtor may, during the entire procedure, agree on the sale through direct agreement and conditions of such a sale. Sale Price and Sale Proceedings Article 173 Immovable property cannot be sold at the price below established value at the first sale public auction. Parties and lienors may reach an agreement, by way of statement issued to the minutes before the public enforcement officer carrying out the enforcement procedure, that immovable property may be sold through public auction at the price below the established value. If the immovable property could not be sold at the first public auction, public enforcement officer shall schedule a second auction at which such immovable property can be sold below the set value, however not below 50% of such value. If the immovable property could not be sold at the second public auction, public enforcement officer shall schedule another public auction at which such immovable property can be sold below 50% of the set value, however not below the amount of claim of the enforcement creditor. If the appraised value is lower than the amount of the claim and at the second public auction the sale was not successful, immovable property can be sold below the established value, without limitations, only with a prior consent of the enforcement creditor and lienor. No less than 15 and no more than 30 days must elapse between public auctions. Provisions of paragraphs 2 and 3 of this Article shall apply also in such instance when immovable property cannot be sold by direct agreement for an established value nor in some later sale auction. Terms of sale Article 174 In addition to other data, the terms of sale shall contain:

1. Detailed description of immovable property with appurtenances;

2. Specification of third party rights that are not terminated by sale;

3. Specification of easements and property encumbrances taken over by the buyer;

4. Appraised value of the immovable property;

5. Deadline for the buyer to deposit the price; 6) Manner of sale, amount of surety, period within which the surety must be issued, and where and how it should be deposited. The deadline referred to in paragraph 1 item 5 of this Article shall not be longer than 30 days from the day of sale. Date, place and terms of sale shall be published in the media, upon proposal of enforcement creditor or enforcement debtor, at the expense of the proposing party. Depositing Surety Article 175 Only persons that deposited surety in advance may participate at the public auction. Surety referred to in paragraph 1 of this Article shall amount to one tenth of the established value of the immovable property. Enforcement creditor and lien enforcement creditor shall be exempt from depositing surety if their claims amount to the amount of the surety and if such amount could be satisfied from the purchase price, taking into account their seniority and established value of the immovable property. Bidders whose bids were not accepted shall have their sureties refunded immediately upon closing of the public auction, except for the second and third bidder. In case of sale by direct agreement, the buyer shall deposit the surety with a person with whom he/she entered into contract, immediately before executing the contract. One Bidder Article 176 Public auction for sale of immovable property shall take place even when only one bidder is present. Public enforcement officer may decide, upon proposal of parties or lienor and depending on circumstances of the case, to postpone the public auction for sale of immovable property if only one bidder is present, for not more than 15 days. Who cannot be a Buyer Article 177 Neither in case of public auction nor in case of direct agreement, a buyer can be the enforcement debtor, founder or authorized person in the enforcement debtor, judge, public enforcement officer and person employed with the public enforcement officer or another person taking official part in the sale procedure, or their blood relative in direct line up to any degree, and in collateral line up to the fourth degree, a spouse or in-law relative up to the second degree, guardian, adoptee or adoptive parent, and person who, in accordance with law, cannot acquire immovable property subject to enforcement Public Auction and Awarding of Immovable Property Article 178 Public auction for sale shall commence when it is established that the conditions for public sale are met. Public auction shall start by announcement of the initial price. If at least one of the participants accepts the announced price, the following higher price shall be announced,

whereby the court, i.e. public enforcement officer shall take care that no new increase of the price is disproportionate to the last announced price of immovable property. Public auction shall be closed immediately after the last announced price is not accepted. After the public auction is closed and possible pre-emption rights expressed, public enforcement officer shall announce the bidder that offered the highest price and shall award the immovable property to such bidder. Public enforcement officer shall adopt a conclusion on awarding the immovable property sold in the public auction that is to be delivered to all persons who are serviced the conclusion on sale of immovable property, as well as to all participants in the auction. Minutes shall be kept on the public auction for sale of immovable property. Award in Case of Sale by a Direct Agreement Article 179 Public enforcement officer shall adopt a conclusion on awarding the immovable property sold in a direct agreement, after he/she has established that conditions are met for the sale to be effective. Conclusion on awarding immovable property referred to in paragraph 1 of this Article shall be delivered to all persons who are serviced the conclusion on sale of immovable property, as well as to the buyer. Depositing Price Article 180 Buyer shall be obliged to deposit a price within the deadline set in the conclusion on sale of immovable property. If the buyer is an enforcement creditor whose claim does not reach the amount of the price obtained in the public auction and if, considering his seniority level, he/she could be satisfied from such a price, he/she shall be obliged to deposit only difference between the claim and obtained price on the account of the price. If the bidder who offered the highest bid fails to deposit the price within the envisaged deadline, public enforcement officer shall declare that the sale of immovable property to such bidder has no legal effect and shall invite the second-ranked bidder to purchase the immovable property. If such a bidder also fails to deposit offered prices within specified deadline, public enforcement officer shall apply the same rules to the third-ranked bidder as well. In the case that all three bidders with the highest bids fail to deposit offered price, i.e. sale price within the deadline, public enforcement officer shall act in accordance with Articles 94 and 95 of this Law. Costs of new sale shall be settled and possible differences between the obtained prices in the earlier and new sale shall be compensated from the deposited surety of the bidders referred to in paragraph 4 of this Article Handing Over Immovable Property to the Buyer Article 181 After depositing the price in case of sale of immovable property by public auction, i.e. after depositing the price in case of sale of immovable property by direct agreement, public enforcement officer shall render a conclusion that the immovable property is to be handed

over to the buyer and that ownership rights shall be registered in the immovable property cadastre for his benefit. Conclusion on handing over of the immovable property shall be delivered to all persons who are serviced the conclusion on sale of immovable property as well as to the administration authority in charge of tax affairs. A request for remediation of irregularities may be lodged against this conclusion, which is to be decided by a court’s ruling, in accordance with Article 65 of this Law. Complaint against ruling referred to in paragraph 3 of this Article shall not postpone enforcement. Ruling on merits of the request referred to in paragraph 3 of this Article shall not affect the executed sale; but it may represent grounds for damages. Loss of Possession Right on Immovable Property Article 182 Through sale of immovable property the enforcement debtor shall lose possession right on immovable property and shall be obliged to handover the immovable property to the buyer immediately upon servicing of the conclusion on handing over the immovable property, unless otherwise stipulated by law or agreement with the buyer. Eviction of the Enforcement Debtor Article 183 After the conclusion on handing over the immovable property is rendered, public enforcement officer shall order to the enforcement debtor by way of a conclusion to vacate the immovable property and hand it over to the buyer. Public enforcement officer shall commence execution of eviction in accordance with Articles 224 to 227 of this Law. Eviction of Other Persons Article 184 After the conclusion on handing over the immovable property is rendered, public enforcement officer shall order to other persons located in the immovable property to vacate and hand over the immovable property, except in case referred to in Articles 162 and 163 of this Law. Public enforcement officer shall commence execution of eviction in accordance with Articles 224 to 227 of this Law. 3. Satisfaction of Enforcement Creditors Commencing the Satisfaction Article 185 Public enforcement officer shall commence satisfaction immediately upon executed sale of immovable property or upon receipt of the sale price. Persons to be Satisfied and Proportionate Satisfaction Article 186

Enforcement creditor, who submitted the petition for concerned enforcement, lien enforcement creditors even when they have not declared their claims and persons having compensation rights for personal easements shall be satisfied from the sale price of immovable property. The amount of the sale price remaining after the satisfaction referred to in paragraph 1 of this Article shall be given to the enforcement debtor, if there are no obstacles to that effect. If the sale price is not sufficient for complete satisfaction, several claims having the same seniority level shall be satisfied in proportion to the level of such claims. Seniority of Satisfaction Article 187 The amount obtained through sale of immovable property shall be used to satisfy primarily the down listed, in the following priority order:

1. enforcement procedure costs;
2. Claims arising from statutory subsistence, if evidenced by an enforceable document and if declared by no later than on the public auction for sale. Seniority of Satisfaction of Other Claims Article 188 After satisfaction of claims referred to in Article 187 of this Law, the following shall be satisfied in the order as follows:
3. Claims secured by a lien;
4. Claims of compensations for personal easements and property encumbrances that are terminated by the sale, if created before initiation of the enforcement proceedings;
5. Claims of enforcement creditors upon whose petition the enforcement was ordered. Lienors shall be satisfied in order of registration of the liens or property encumbrance in the immovable property cadastre or other appropriate public records. Creditors in respect of personal easement shall be satisfied in order of acquisition of easement rights. Costs and interests for last three years from the time of rendering the conclusion on handing over the immovable property to the buyer, set forth by the enforceable document, shall be satisfied in the same order of priority as the principal claims. Amount of Compensation for Personal Easements and Property Encumbrances Article 189 If holders of rights of personal easements or property encumbrances that are terminated through sale do not make an agreement on the amount of compensation for such rights with the enforcement creditors who have lower level of seniority compared to them, public enforcement officer shall determine the amount of such compensation whereby he/she should take into account particularly the remaining duration that such easement or encumbrance should have, their value, and age of the holders of such rights. Buyer and holder of personal easement or property encumbrance rights may reach an agreement for the buyer to take over the easement or property encumbrance and that the compensation amount established in accordance with paragraph 1 of this Article is deducted from the sale price.

Contesting Claims Article 190 Enforcement creditor or another person that is to be satisfied from the sale price of immovable property may contest the existence of other person’s claim, its amount and seniority of satisfaction, if it impacts his satisfaction. Contesting of claim, referred to in paragraph 1 of this Article, can be made no later than 15 days following the day of adoption of the conclusion on satisfaction. Enforcement creditor shall contest the claim before the court with jurisdiction, and shall deliver a copy of this request to the public enforcement officer as well. Referral to Civil Proceedings Article 191 The court shall instruct a person contesting the claim to initiate civil proceedings within a specified period that cannot exceed 15 days, if the decision depends on contested facts, unless the evidence for contest is based on a final judgment, public document or private document authenticated in accordance with law. If person contesting the claim provides evidence for such contest in form of a final judgment, public document or private document authenticated in accordance with law, the court shall rule upon such contest immediately. If person who contested the claim fails to prove, within the deadline referred to in paragraph 1 of this Article, that he/she initiated the civil proceedings, the claim shall be deemed uncontested. Provision of paragraph 3 of this Article shall be without prejudice to the right of person who contested the claim to initiate civil proceedings against the person whose claim he/she contested, i.e. against the person who contested the claim, after the completion of the enforcement proceedings. Judgment rendered in civil proceedings concerning the contested claim shall have effect on the enforcement debtor and all enforcement creditors. Providing Security Article 192 Upon a proposal of the person whose claim is contested, public enforcement officer may condition the delay in rendering a conclusion on satisfaction and satisfaction of claim for such person by provision of security for damage that such person could suffer as a result of delaying the satisfaction. Amount referred to in paragraph 1 of this Article shall be deposited in a special purpose account of the public enforcement officer. If person who contested the claim fails to provide the appropriate security referred to in paragraph 1 of this Article within the given deadline, the claim shall be deemed uncontested. If the contesting was unjustified, the person whose claim was contested and who suffered damage as a result of that shall be entitled to collect the damage from the amount deposited as security. 4. Special Rules for Satisfaction of Specific Claims Unmatured Claims

Article 193 Amount of claim secured by a lien, but not matured yet, shall be separated and deposited in the court, i.e. with the public enforcement officer and paid according to maturity, unless lienor requests for the claim to be paid before maturity. In the event that lienor requests a claim with a contractual interest to be satisfied before maturity, such a claim shall be paid with the amount of the contracted interest by the day of conversion of the subject of claim into cash. Claim of a lienor that is not mature on the day of adoption of the conclusion on satisfaction, and not having a contracted interest, shall be paid after deducting the amount of the statutory default interest calculated from the day of adoption of the conclusion on satisfaction until the day of maturity of such claim. Unmatured claim having a contracted interest shall be paid together with the amount of the contracted interest, accrued only up to the day of adoption of conclusion on satisfaction. Unmatured Claim Arising from Occasional Earnings Article 194 Claim arising from occasional earnings for compensation of damage incurred as a result of impaired or diminished health or loss of work ability and due to loss of subsistence resulting from a death of subsistence provider, secured by a pledge and having maturity after the day of adoption of the conclusion on satisfaction shall be satisfied upon an explicit request of the enforcement creditor. Claims referred to in paragraph 1 of this Article shall be calculated in accordance with the manner used for calculation of compensations for personal easement or property encumbrance referred to in Article 189 of this Law. Conditioned Claim Article 195 The amount of claim that is secured by a lien and that depends on any condition, shall be separated and deposited into a special purpose account of the public enforcement officer and paid when suspensive condition occurs or when it is certain that condition for termination will not occur. If the suspensive condition does not occur or if the condition for termination occurs, the amount set aside shall serve for satisfaction of enforcement creditors whose claims are not entirely satisfied or are not satisfied at all, and if such enforcement creditors do not exist, or the entire amount is not used for their satisfaction, such amount, i.e. the residue shall be transferred to the enforcement debtor. Pre-registration Note for the Lien and Registration Note of Initiating the Dispute Article 196 If pre-registration note for the lien is registered in the immovable property cadastre, and the person for whose benefit the pre-registration note is registered proves that the proceeding for its justification is in progress, i.e. that the period for initiating such proceeding has not expired yet, the claim that the pre-registration note refers to shall be satisfied in the manner used to satisfy claims under suspensive condition.

The claim for which there is an entry in the immovable property cadastre concerning the initiation of a dispute for deletion of lien or a registration note concerning the initiation of a dispute shall be satisfied in the manner used to satisfy claim under a termination condition. Conclusion on Satisfaction of Claim Article 197 Public enforcement officer shall decide about the satisfaction of enforcement creditors and other persons entitled to satisfaction by way of a conclusion on satisfaction, taking into account the situation resulting from the file, immovable property cadastre or other public records. Only such claims where the writ of enforcement became final by no later than the day of adoption of the conclusion shall be taken into account for adoption of the conclusion referred to in paragraph 1 of this Article. If there are claims under which the writ of enforcement is not final on the day of adoption of the conclusion referred to in paragraph 1 of this Article, such claims shall be satisfied after the writ of enforcement becomes final from the residue of the sale price of immovable property, if any, while the rest will be returned to enforcement debtor. Deleting Rights and Encumbrances Article 198 Public enforcement officer shall order the deletion of rights and encumbrances registered in the immovable property cadastre or other public records, by way of conclusion on satisfaction, except those rights and encumbrances that remain on the immovable property even after the handing over of immovable property to the buyer or those taken over by the buyer. 5. Special Rules for Enforcement on Immovable Property not Registered in the Public Records Enforcement on Immovable Property where there is No Immovable Property Cadastre Article 199 On the territory where cadastral records are not based on the surveying, legal rules applicable on such territory for documents to be submitted with the enforcement petition as evidence of ownership right on immovable property subject to enforcement shall apply accordingly. If it is not possible to obtain evidence on the ownership right in accordance with statutory rules applicable for such territory, instead of the evidence of ownership, enforcement creditor shall be obliged to state the place where the immovable property is located, its name, boundaries and area in the enforcement petition. In the case referred to in paragraph 2 of this Article, the public enforcement officers shall take inventory of the immovable property subject to the enforcement petition and invite to the process of taking inventory the enforcement creditor, enforcement debtor and persons having a bordering immovable properties with such immovable property. Minutes of inventory shall have the significance of registration of enforcement and shall be published in the media. Public enforcement officer shall deliver the copy of the minutes to the administration authority in charge of registration in the immovable property cadastre.

Enforcement against immovable property that is not registered in the immovable property cadastre Article 200 If immovable property is not registered in the immovable property cadastre, along with the enforcement petition, enforcement creditor must submit documents on the basis of which registration can be done, i.e. transfer that obligation on the public enforcement officer. Public enforcement officer shall without any delay submit documents referred to in paragraph 1 of this Article to the administration authority in charge of registration in the immovable property cadastre and shall stay the enforcement proceedings until the registration procedure is completed. 6. Application of Provisions on Out-of-Court Sale of Pledged Immovable Property Article 201 Provisions of this chapter shall apply accordingly to the out-of-court sale of immovable property encumbered by a mortgage, for the purpose of satisfying the claim of the mortgage creditor, unless otherwise stipulated by the law governing ownership relations. Mortgage creditor may authorise a public enforcement officer, lawyer or registered agency for trade in immovable property to effectuate the sale of the immovable property referred to in paragraph 1 of this Article in accordance with law. XV. ENFORCEMENT AGAINST OTHER PROPERTY RIGHTS Manner of Implementing Enforcement Article 202 Enforcement against patents, technical improvements, usufructs and other property right of the enforcement debtor shall be implemented by imposing a ban on disposal of such right, as well as its conversion into cash, in accordance with Articles 81 to 100 of this Law. XVI. SPECIAL PROVISIONS ON ENFORCEMENT AGAINST PROPERTY OF LEGAL ENTITIES AND ENTREPRENEURS FOR THE PURPOSE OF COLLECTING MONETARY CLAIM

1. Exemptions and Restriction Assets not-traded with Article 203 Assets not traded with or natural resources and goods in common use cannot be assets of enforcement. Things Required for the Defence, State and Public Security Article 204 Structures, weapons, and equipment needed for defence, state and public security, or monetary assets provided for such purposes cannot be assets of enforcement. For the purpose of paragraph 1 of this Article, structures shall mean buildings, underground and aboveground structures with appurtenant infrastructure, installed

facilities for production of weapons and military equipment, and other structures used for the needs of defence, state and public security. 2. Enforcement against the Account of the Enforcement Debtor Scope of Enforcement against a Legal Entity and Entrepreneur Article 205 Enforcement against monetary assets on the account of legal entity or entrepreneur shall be implemented against all monetary assets in his accounts with one or several banks used for effecting national payment transactions and international payment transactions, except in accounts exempt from enforcement in accordance with law. If the enforcement debtor has a term deposit with a bank, the bank shall, on the day of expiry of the contract on term deposit, i.e. on the day of early termination of term deposit, transfer such funds to the account of the enforcement debtor, for the purposes of enforcement. The enforcement that concerns users of budget funds shall be implemented from the account opened in the manner stipulated by law governing the budget system. Additional Contents of the Enforcement Petition Article 206 Enforcement creditor shall be obliged to state in the enforcement petition, among other things, at least one of the following data: name of the bank holding the account of the enforcement debtor, registration number of the enforcement debtor legal who is a entity, i.e. unique citizens registration number of the enforcement debtor who is an entrepreneur, as well as number of his/her account in the country, or the name of intermediary bank with data required to execute the transfer of funds to his/her account abroad, i.e. to the special purpose account of the public enforcement officer. If Montenegro or local self-government unit are stated as the enforcement debtor in the enforcement petition, enforcement creditor shall be obliged also to state the user of budget funds against which the enforcement petition is lodged. Writ of Enforcement Article 207 Writ of enforcement against the monetary assets kept in the account of the enforcement debtor shall order to the organization for forced collection to order to the bank to transfer the amount of monetary assets subject to enforcement from the account of the enforcement debtor to the account of the enforcement creditor, i.e. to the special purpose account of the public enforcement officer. If no action can be taken under the writ of enforcement due to a lack of data or inaccurate data, the organization for forced collection shall forthwith return the writ to the public enforcement officer stating the reasons of such return. Recording and Issuing Certificates Article 208 Organization for forced collection shall record received writ of enforcement by date and time of receipt, and shall establish the collection sequence. Organization for forced

collection shall issue a certificate to the enforcement creditor, upon his/her request, about the order of his claim in the records of priorities. Organization for forced collection shall issue to the enforcement debtor, upon his/her request, a certificate on total unsettled obligations by enforcement creditors and on the number of days for which the account of the enforcement debtor is blocked, as well as an overview of the number of executed, partially executed and not executed orders. Implementation of Enforcement Article 209 Upon receipt of the writ of enforcement, organization for forced collection shall identify banks and accounts of the enforcement debtor for carrying out national payment transactions and for carrying out international payment transactions by: bank name, unique registration number of the enforcement debtor or tax identification number of the enforcement debtor, and shall forthwith order to the banks to block all of those accounts and shall submit data on the balance in such accounts. From the moment of receipt of the order for blocking the account of the enforcement debtor until blocking of such account, as well as during the blocking, the funds on the account of the enforcement debtor cannot be used for making transfers, except for executing transfers that are the reason for blocking. Banks cannot open new accounts for the enforcement debtor while the enforcement proceedings against his/her monetary assets are in process. The bank shall be obliged forthwith to transfer funds, as ordered by the organization for forced collection, to the enforcement creditor’s account, i.e. on a separate account of the public enforcement officer and to inform the organization for forced collection thereof without any delay. Where enforcement is implemented on the basis of a bill of exchange, the organization for forced collection shall be obliged to act upon the writ of enforcement and block monetary assets on the account of the enforcement debtor, while making a transfer of monetary assets upon an order of the public enforcement officer. The state administration authority in charge of financial affairs shall stipulate the detailed manner of implementing enforcement on monetary assets kept on the account of the enforcement debtor. Organization for forced collection shall charge a fee for implementation of enforcement against monetary assets kept on the account of the enforcement debtor, in the amount and in the manner set forth under a separate regulation, subject to the consent of the Government. Seniority of Collection Article 210 After receiving data on the balance of funds on accounts of the enforcement debtor, organization for forced collection shall order to the bank where the enforcement debtor has the largest amount of funds on the account for carrying out national payment transactions to make debt collection from that account, and if the funds on that account are not sufficient, the organization for forced collection shall order the same to other banks where enforcement debtor has accounts for carrying out national payment transactions, in the order based on the amount of funds on the accounts of the enforcement debtor, starting with the highest amount and ending with the final collection of the enforcement creditor based on the writ of enforcement.

If on the accounts of the enforcement debtor for carrying out national payment transactions there are no funds or there are no sufficient funds to satisfy the debt, organization for forced collection shall order to all banks where the enforcement debtor has funds on the accounts for carrying out international payment transactions to make debt collection from those accounts, in the order based on the amount of funds of the enforcement debtor, on such accounts starting with the highest amount and ending with the final collection of the enforcement creditor based on the writ of enforcement. Banks referred to in paragraphs 1 and 2 of this Article shall be obliged to make collection from the account of the enforcement debtor without any delay. If there are no funds or funds are insufficient on accounts referred to in paragraphs 1 and 2 of this Article, organization for forced collection shall retain the blocking of those accounts until the final collection on behalf of the enforcement creditor from inflows on any of those accounts. When enforcement is implemented against the account of the enforcement debtor for carrying out international payment transactions, where the enforcement debtor had funds in the currency other than euro, the bank shall make conversion into euro using the central exchange rate from quotation list of the Central Bank of Montenegro (hereinafter referred to as “the Central Bank”) on the day of transfer of such funds in favour of the account of the enforcement debtor. Measures against Banks Failing to Act upon Orders Article 211 If a bank fails to submit to the organization for forced collection the data on the balance on the account of the enforcement debtor, upon receiving the blocking order and no later than by the end of business day in which the bank received the blocking order, organization for forced collection shall order by way of a conclusion to the Central Bank to forthwith ban the disposal of funds on clearing account of such bank, kept in the payment system whose operator is the Central Bank, for the amount that corresponds to the total liability of the enforcement debtor set forth by the writ of enforcement. The ban of disposal over these funds shall last until the bank submits to the organization for forced collection data on the balance of funds on the account of the enforcement debtor. If, upon receiving the blocking order, a bank submit to the organization for forced collection the data on the balance on the account of the enforcement debtor, but fails to collect the funds from that account, organization for forced collection shall order by way of a conclusion to the Central Bank to forthwith ban the disposal of funds on clearing account of such bank, kept in the payment system whose operator is the Central Bank, for the amount that was to be collected from that account of the enforcement debtor. The ban on disposal over these funds shall last until the bank executes the order of then organization for forced collection. Delay and Completion of Enforcement Article 212 If the enforcement against monetary assets of the enforcement debtor is delayed, an appropriate amount of funds shall be set aside to maintain the order of collection of claims, except if the delay is ordered at the proposal of the enforcement creditor. Upon completion of the enforcement against account of the enforcement debtor, organization for forced collection shall order banks de-blocking of the account of the enforcement debtor.

Occasional Allowances Article 213 If the writ of enforcement orders to the enforcement debtor to pay occasional allowances maturing within specific time intervals (monetary annuity due to impaired or diminished health or due to loss of work ability, or resulting from a death of subsistence provider, and similar), organization for forced collection shall make payment of such allowances as they become mature without any repeated request. In the case referred to in paragraph 1 of this Article, the order of collection of all future instalments shall be calculated according to the time of receipt of the writ of enforcement. Organization for forced collection shall keep special records on writs of enforcement for collection of future occasional allowances. If at the time of maturity of allowances referred to in paragraph 1 of this Article for collection against accounts of the enforcement debtor there are no funds or funds are insufficient, provisions of Article 210 of this Law shall apply accordingly. Stay the Enforcement Article 214 After receiving the writ of enforcement against funds on the account of an enforcement debtor, organization for forced collection shall stay the enforcement, if the enforcement creditor provides evidence that he/she withdrew the enforcement petition before the public enforcement officer, or if the public enforcement officer notifies the organization for forced collection that he/she has decided that enforcement is to be implemented against other means of enforcement, until the public enforcement officer provides the organization for forced collection with the conclusion on termination of proceedings or ruling on change of the means of enforcement. Enforcement against Joint and Several Debtors Article 215 In implementation of enforcement against two or more enforcement debtors that are jointly and severally liable for obligations under an enforceable document and covered by the same writ of enforcement, organization for forced collection shall block all accounts of all joint and several enforcement debtors, while the transfer of funds shall take place in accordance with seniority stated for the joint and several debtors in the writ of enforcement, in accordance with Article 210 of this Law, until full satisfaction. Enforcement from Accounts held with the Central Bank Article 216 For the purpose of enforcement against monetary assets on the account of the enforcement debtor kept with the Central Bank, organization for forced collection shall order to the Central Bank to block immediately such account and to submit data on the balance of funds on such account. Organization for forced collection shall give orders referred to in paragraph 1 of this Article in the order of receipt of writs of enforcement.

After receiving data on the balance of funds on the account of the enforcement debtor, the enforced collection organisation shall order to the Central Bank to make collection of the debt from such account. Statement of enforcement creditor in case that a writ of enforcement is not implemented Article 216a If within 45 days from the day of service of the writ of enforcement on the organization for forced collection the payment from the funds on the account of the enforcement debtor has not started, public enforcement officer shall invite the enforcement creditor, within five days, to make his/her statement regarding the further procedure and give him/her a deadline for making such statement which cannot be longer than 15 days. If the enforcement creditor fails to make the statement referred to in paragraph 1 of this Article within the set deadline, public enforcement officer shall render a ruling to terminate enforcement procedure. Enforcement for Collection of Claims from the Account for International Payment Transactions Article 217 If obligation under the enforceable document is stated in specific foreign currency instead of in euro, the enforcement shall also be ordered, upon a petition of the enforcement creditor, on a claim that in such currency enforcement debtor has against the bank on the account for international payment transactions. The bank shall execute payment of claim in foreign currency in accordance with regulations governing operations with abroad. Exemption of Claims arising from Contributions, Taxes and Customs Article 218 Claims of Montenegro, local self-government units, funds and other legal entities established pursuant to law cannot be subject to enforcement, against obligors of contributions, taxes and custom duties. Enforcement on the basis of Bill of Exchange Article 218a –ceased to be valid￾B. ENFORCEMENT FOR COLLECTION OF NON-MONETARY CLAIM XVII. UNLIQUIDATED DAMAGES Ordering and Implementation of Payment of Unliquidated Damages Article 219 The request of the enforcement creditor for the court to bind the enforcement debtor of non-monetary obligation established by a final court ruling to pay unliquidated damages in

terms of the regulations on obligations shall be decided upon in an enforcement proceedings. Based on the final ruling on payment of unliquidated damages, upon a proposal of the enforcement creditor, the public enforcement officer shall adopt a writ of enforcement. Payment of unliquidated damages may be requested until the enforcement of the court ruling is proposed. Enforcement creditor shall not be entitled to unliquidated damages from the day of submission of the enforcement petition. XVIII. HANDING OVER MOVABLE ASSETS

1. Handing Over of Individually Determined Assets Handing over Assets Located with the Enforcement Debtor or Third Party Article 220 Enforcement for handing over one or more individually determined assets located with the enforcement debtor shall be implemented by divesting such assets from the enforcement debtor and handing it over to the enforcement creditor along with a certificate. In line with provisions of paragraph 1 of this Article, the enforcement shall be implemented even when assets are located with a third party willing to hand it over. If the third party is not willing to hand over assets, enforcement creditor may propose to the public enforcement officer to transfer to him a claim of the enforcement debtor against third party for handing over assets. Provisions of Articles 145 to 148 of this Law concerning enforcement on claims for handing over movable assets shall apply to proceedings upon proposal referred to in paragraph 3 of this Article. Acting when Assets are not Found with the Enforcement Debtor or Third Party Article 221 Where individually determined assets is not found with either the enforcement debtor or with a third party, public enforcement officer shall, upon a proposal of the enforcement creditor for enforcement debtor to pay the value of such asset, appraise value of assets and by way of a ruling order to the enforcement debtor to pay the value of such asset within a set deadline, under the threat of forced enforcement. Enforcement creditor may lodge a proposal in terms of paragraph 1 of this Article within eight days from the day of notification that assets are not found. Enforcement creditor may request the payment of statutory default interest on the amount of appraised value of assets from the day of appraisal until the day of payment. If, within the deadline referred to in paragraph 2 of this Article, the enforcement creditor fails to lodge a proposal for enforcement creditor to pay the value of assets, the public enforcement officer shall terminate enforcement.
2. Handing over of Fungible Assets Handing over Assets Located with the Enforcement Debtor or Third Party Article 222

Where enforceable document is for delivery of certain quantity of fungible assets located with the enforcement debtor or third party, the enforcement shall be implemented in the manner stipulated in Article 220 of this Law. Acting when Fungible Assets are not Found with the Enforcement Debtor or Third Party Article 223 If fungible assets are not found with the enforcement debtor or a third party, the enforcement creditor may propose that enforcement is implemented in such a way that the public enforcement officer authorises the enforcement creditor to procure such assets from another party at the expense of the enforcement debtor, within a set deadline. The enforcement creditor may lodge the proposal for assets to be procured from another party within eight days from the day of notification from the public enforcement officer that assets are not found. Public enforcement officer shall, upon a proposal of the enforcement creditor, order to the enforcement debtor by way of a conclusion to deposit the amount for procurement of assets within the set deadline, and implement the enforcement for collection of such amount with statutory default interest from the day of appraisal of asset to the day of depositing the amount with the public enforcement officer. If the enforcement creditor fails to lodge a proposal for procurement of assets from another party within the deadline referred to in paragraph 2 of this Article, the public enforcement officer shall terminate the enforcement, unless the enforcement creditor presented in a timely manner a proposal that the enforcement creditor pays him/her the value of assets he/she was suppose to hand over. XIX. VACATING AND HANDING OVER IMMOVABLE PROPERTY Manner of Implementing Enforcement Article 224 Enforcement for vacating and handing over immovable property shall be implemented by public enforcement officer handing over the immovable property to the possession of the enforcement creditor, after removing persons and assets from such immovable property. Vacating and handing over immovable property may be initiated after the expiry of eight days following the service of the writ of enforcement to the enforcement debtor, except when the writ of enforcement is rendered for enforcement of an interim relief and in such case the implementation of enforcement may start immediately upon service of the writ. If the eviction includes minors, public enforcement officers shall notify the guardianship authority. Police Administration shall be obliged to provide all necessary assistance in carrying out actions referred to in paragraph 1 of this Article, upon request of the public enforcement officer. Removal of Movable Assets Article 225 Movable assets that need to be removed shall be handed over to the enforcement debtor and if the judgment debtor is not present to an adult member of his/her household or his/her proxy.

If, at the time of executing enforcement actions, no person referred to in paragraph 1 of this Article is present, public enforcement officer shall leave the assets in the immovable property that they are located in and extend an invitation to the enforcement debtor, i.e. an adult member of his/her household or his/her proxy, to take over the assets within 15 days from receiving the invitation, at the expense of the enforcement debtor, and shall make minutes thereof. If persons referred to in paragraph 2 of this Article do not take over the movable assets within the given deadline or make a statement that they do not want to take over the movable assets, the public enforcement officer shall render a conclusion to hand over the movable assets to the enforcement creditor, i.e. to the ownership of the buyer of the immovable assets, without any compensation. Along with the invitation referred to in paragraph 2 of this Article, the public enforcement officer shall warn the enforcement debtor of the consequences of not taking over the movable assets. Sale of Movable Assets Article 226 – deleted - Enforcement for Collection of the Costs of Proceedings Article 227 Enforcement creditor may request, in the enforcement petition or during implementation of the enforcement for vacating and handing over immovable assets, that enforcement of debtor’s movable assets that are to be removed from the immovable property for collection of enforcement proceedings costs is also ordered together with such enforcement. The enforcement referred to in paragraph 1 of this Article shall be ordered and implemented based on a proposal of the enforcement creditor in accordance with Articles 81 to 101 of this Law. XX. OBLIGATION TO ACT, OMIT OR SUSTAIN Territorial Jurisdiction Article 228 If the enforcement debtor on the basis of the enforceable document is obliged to make certain action that cannot be performed by any other person instead of him or to refrain from certain action or to sustain certain actions, the court where the enforcement debtor should perform the obligation under the enforceable document shall have territorial jurisdiction for deciding upon enforcement petition and for implementing the enforcement. Action that Can Also be Performed by Another Person Article 229 On the basis of an enforceable document where the enforcement debtor is obliged to perform certain action that can be performed by another person, the enforcement shall be implemented in such a manner that the public enforcement officer authorises the

enforcement creditor to entrust another person with such action or to do it himself/herself at the expense of the enforcement debtor. Enforcement creditor may propose in the enforcement petition that the public enforcement officer orders to the enforcement debtor by way of a ruling to deposit in advance the amount required to cover the costs that will be incurred by enforcement of such action by another person or enforcement creditor. Public enforcement officer shall adopt the ruling on final amount of costs referred to in paragraph 2 of this Article, upon a proposal of the enforcement creditor or enforcement debtor. Based on the ruling referred to in paragraph 2 of this Article, the enforcement may be proposed before it becomes final, on the basis of the ruling referred to in paragraph 3 of this Article only when it becomes final. Action that Can Only be Performed by the Enforcement Debtor Article 230 If, on the basis of enforceable document, enforcement debtor is obliged to make certain action that could not be performed by another person instead of him, under law or legal transaction, the court shall allow an appropriate deadline under the writ of enforcement for the enforcement debtor to meet the obligation and threaten to impose a pecuniary fine if he/she fails to meet the obligation within the set deadline. The court shall impose, by way of a writ of enforcement, a pecuniary fine if the enforcement debtor fails to meet the obligation within the set deadline, in the amount of €200 to €2,000 for natural person and responsible person of the legal entity, i.e. €2,000 to €20,000 for legal entity, entrepreneur and authority. If the enforcement debtor fails to meet the obligation within such deadline, the court shall, ex officio, implement the enforcement of the ruling on imposed pecuniary fine. In the case referred to in paragraph 3 of this Article, the court shall at the same time render a new ruling allowing the new deadline to the enforcement debtor to meet the obligation and impose a new pecuniary fine, higher than in the previous ruling, if he/she fails to meet the obligation within such deadline as well. The court shall continue acting in the manner stipulated in paragraphs 3 and 4 of this Article, against the enforcement debtor who despite such fine fails to meet his obligation, until the debtor meets his obligation. When assessing the amount of the pecuniary fine within the stipulated limits the court shall take into account the importance of the action that the enforcement debtor was obliged to make, as well as of other circumstances of the case. Omitting and Sustaining Article 231 The enforcement shall be implemented in the manner stipulated in Article 230 of this Law even when the enforcement debtor acts contrary to the obligation to omit or to sustain undertaking of certain action. The court shall, upon a proposal of the enforcement creditor, order by way of conclusion to the enforcement debtor to deposit surety for damage if the enforcement creditor makes plausible that he/she would suffer damage by the enforcement debtor continuing to act contrary to his obligation. The court shall stipulate duration of the surety, depending on the circumstances of the case. The enforcement shall be implemented upon a petition of the enforcement creditor, based on the conclusion on depositing surety.

Reinstatement of Prior Condition Article 232 If change occurred that is not in line with the right of the enforcement creditor, as a result of the enforcement debtor’s bearing contrary to the obligation from the enforceable document, the public enforcement officer shall authorise the enforcement creditor to reinstate the prior condition upon his proposal, alone and if needed with assistance of the public enforcement officer, at the risk and costs of the enforcement debtor. Article 229 of this Law shall apply on depositing funds required for satisfying costs of reinstatement of prior condition and for establishing the final amount of such costs. Repeated Disturbance of Possession Article 233 If based on the enforceable document adopted in the proceedings upon court claim for disturbance of possession, the enforcement is implemented or the enforcement debtor voluntarily met his obligation and then repeated the disturbance of possession, which in essence is not different than the previous one, the court shall, upon a proposal of the enforcement creditor, using the same enforceable document, render a new writ of enforcement ordering a return of the assets in possession, i.e. writ of enforcement imposing a penalty for failure to perform an action that could only be performed by the enforcement debtor. The enforcement petition referred to in paragraph 1 of this Article may be lodged within 30 days following the day of learning about repeated disturbance of possession, and no later than within one year after the repeated disturbance. XXI. PARTITION OF ASSETS Physical Partition Article 234 Public enforcement officer shall order a physical partition of common assets if such partition is envisaged under the enforceable document. All participants shall be invited to take part in implementation of the physical partition. Determining the Manner of Partition Article 235 Public enforcement officer carrying out the enforcement proceedings shall decide, in accordance with regulations governing property rights, whether the partition of asset shall be done through physical partition or sale, if the enforceable document does not envisage the manner of partition, or the parties have not reached any agreement thereon or that the partition is possible only with significant reduction of the value of assets. The partition shall be made through sale if it is established in the enforcement proceedings that the physical partition determined under the enforceable document is not possible or it is possible only with significant reduction of the value of assets. Partition by Sale Article 236 If a common asset needs to be sold, based on an enforceable document, in order to be partitioned, the sale shall be carried out in accordance with provisions of this Law governing

the enforcement on movable assets or immovable property, unless parties agree otherwise in respect of specific issues. Costs of the Proceedings Article 237 All co-owners shall bear the costs of implementation of the enforcement through physical partition, in proportion to the value of their respective parts of the common asset. The co-owner who caused specific costs shall be obliged to compensate them to those co-owners that had them. XXII. HANDING OVER AND TAKING AWAY A CHILD AND MAINTAINING PERSONAL RELATIONS WITH THE CHILD Territorial Jurisdiction Article 238 The court that has general territorial jurisdiction for the enforcement creditor, as well as the court on territory where the child is located shall have jurisdiction for deciding upon an enforcement petition of a ruling ordering the handing over of a child to a parent or another person or institution the child is being entrusted with for guardianship and education. The court on territory where the child is found shall have territorial jurisdiction for implementing the enforcement. The court referred to in paragraphs 1 and 2 of this Article may decide that certain enforcement actions are entrusted to the court not having jurisdiction for implementing the enforcement. Legal Standing for Lodging a Petition Article 238a Enforcement petition referred to in Article 239 paragraph 1 of this Law may be lodged by the parent who has been entrusted to exercise parental right, other person or institution to which the child is entrusted for care and upbringing and a guardianship authority. Protection of the Interests of the Child Article 238b The court that decides about the proposal referred to in Article 238 paragraph 1 of this Law shall particularly care about the child’s best interest. If it is in the best interest of the child, the court, to decide about the petition referred to in Article 238 paragraph 1 of this Law, may schedule a hearing inviting a psychologist determined by the guardianship authority and, if needed, also court experts of appropriate expert knowledge. Psychologist, i.e. court experts referred to in paragraph 2 of this Article shall be obliged to establish the emotional status of the child, the manner in which the child reacts to stress and coping mechanisms, speed to adapt to changes, emotional relations of the child and the person that the child lives with and the person the child is to be handed over to and other facts significant for the organization of the enforcement actions, as well as to do information-counselling work with the person that the child lives with and to try achieving a voluntary handing over of the child to avoid a traumatic reaction of the child and damaging consequences for his growth and development.

Writ of Enforcement Article 239 On the basis of a court ruling on exercising parental right, enforcement may be ordered and implemented with the purpose of handing over the child regardless of whether handing over is ordered in the court ruling. The court referred to in Article 238 of this Law shall order a forced taking away and handing over the child by the writ of enforcement of the ruling referred to in paragraph 1 of this Article. Handing over of the child can be ordered by the ruling referred to in paragraph 2 of this Article to the person that the ruling referred to in paragraph 1 of this Article refers to, person on whose will the handing over of the child depends and to any other person that the child is with at the time of rendering the writ of enforcement or during the implementation of enforcement. Means of enforcement Article 239a After estimating circumstances, the court shall in the writ of enforcement determine the following means of enforcement:

1. forced taking away and handing over of the child;
2. fine;
3. prison sentence. The means referred to in paragraph 1 of this Article may be ordered and implemented against the person who, contrary to the writ of enforcement, refuses to hand over the child, person who hinders or prevents handing over of the child, person that the child is with or person on whose will the handing over of the child depends. The enforcement petition for the purpose of handing over the child does not have to contain designation of the means of enforcement, and if it is designated the court shall not be bound by it. The court may change means of enforcement until the enforcement is finalized. Fine and Prison Sentence Article 239b The fine referred to in Article 239 paragraph 1 item 2 of this Law shall be imposed and enforced in line with Article 230 of this Law. The fine referred to in Article 239a paragraph 1 item 2 of this Law may not be replaced by a prison sentence. Prison sentence referred to in Article 239a paragraph 1 item 3 of this Law may be imposed in duration of up to three months, only before the child is handed over. Continuation of Enforcement Article 240

The court shall, upon a proposal of the party being entrusted with a child, continue the enforcement under the same writ of enforcement, if the child is again found with the person from whom was taken away within the period of 60 days following the day of handing over the child. Forced Taking Away and Handing Over of the Child Article 241 If the enforcement could not have been implemented through imposing and enforcing the ruling on fine or prison sentence, enforcement shall be implemented by taking the child away from the person that the child is with and handing the child over to the parent, i.e. other person or institution that the child is entrusted to for care and upbringing. The court shall inform the party that lodged the enforcement petition and the person that the child is to be handed over to about the time and place of taking away and handing over the child, according to the rules on personal service. The child is taken away and handed over by the judge in cooperation with the psychologist appointed by the guardianship authority, school, family guidance clinic or other institutions specialised for mediation in family matters. During the process of taking away and handing over of the child, the psychologist referred to in paragraph 3 of this Article shall be obliged to follow the behaviour and reactions of the child and the person that the child is taken away from, to influence prevention of conflicts or traumatic reaction of the child, to counsel the judge how to effect taking away and handing over of the child with as little damage for the growth and development of the child as possible and to undertake himself/herself all necessary actions for these purposes and to enter his/her observations into the minutes on taking away and handing over of the child and sign it. Implementation of Enforcement if it is Ordered that the Child is to be Handed Over Immediately Article 241a Where writ of enforcement orders the child to be handed over immediately, writ of enforcement shall be given to the person that the child is taken away from within the first enforcement action. If that person is not present during the process of taking away the child, writ of enforcement shall be serviced on him subsequently. If the child is taken away from the person that the enforceable document does not refer to, such a person shall be submitted writ of enforcement and minutes on taking away the child. Absence of the person that the child is taken away from does not prevent taking away of the child. Enforcement for the Purpose of Maintaining Personal Contacts with the Child Article 241b Provisions of Article 238 to 241a of this Law shall be applied accordingly in the enforcement proceedings with the purpose of maintaining personal contacts with the child. XXIII. REINSTATMENT OF AN EMPLOYMEE Territorial Jurisdiction

Article 242 Court on the territory where the registered office of the employer is located shall have the territorial jurisdiction for deciding upon an enforcement petition and for implementation of the enforcement based on an enforceable document obliging the employer to reinstate an employee or to assign him to an appropriate job position. Deadline for Lodging the Enforcement Petition Article 243 The enforcement petition referred to in Article 242 of this Law may be lodged within the period of 60 days following the day of employee acquiring the right to lodge such petition. Manner of Implementing Enforcement Article 244 Enforcement based on an enforceable document obliging the employer to reinstate employment of an employee or to assign him to an appropriate job position shall be implemented by imposing a pecuniary fine on an employer and responsible person of the employer. The pecuniary fine shall be imposed in accordance with Article 230 of this Law. Wage Compensation in the Case of Reinstatement of an Employee Article 245 An employee who lodged a petition for reinstating his employment may propose to the court to render a ruling ordering the employer to pay monthly wage amounts due from the time the judgment became final until reinstatement of his employment. The petition for compensation referred to in paragraph 1 of this Article may be merged with an enforcement petition or may be lodged afterwards prior to the enforcement proceedings is finalised The ruling adopting the petition for compensation shall have effect of a writ of enforcement. The employer may propose to the court to abrogate the ruling referred to in paragraph 3 of this Article if merits used to adopt such ruling changed after the ruling was rendered. Compensation of monthly wage shall be determined as to correspond to the amount the employee would generate if employed. Provisions of this Article shall be without prejudice to the right of employee to achieve his claim of monthly wage compensation in a proceeding before the court with jurisdiction. If the court adopted the request to pay wage compensation in part, the employee may achieve the remaining part of the wage in a proceeding before the court with jurisdiction. XXIV. REGISTERING RIGHT ON IMMOVABLE PROPERTY IN THE IMMOVABLE PROPERTY CADASTRE Deciding upon a Petition Article 246 Public enforcement officer shall decide upon an enforcement petition for establishing rights on immovable property by registration in the immovable property cadastre, as well as for transfer, restriction of or termination of rights registered in the immovable property cadastre.

The authority making registration in the immovable property cadastre shall be in charge of implementation of enforcement. Manner of Implementing Enforcement Article 247 Enforcement referred to in Article 246 of this Law shall be implemented in such manner that registration in the immovable property cadastre shall be done for the following: establishing rights on immovable property or on transfer, restrictions of or termination of rights on immovable property. Registration of Ownership Rights when Enforcement Debtor is not Registered as Owner Article 248 Where enforcement debtor is not registered as owner of the immovable property, the enforcement by registration of rights on the immovable property may be imposed only when the enforcement creditor causes with the administration authority in charge of registration in the immovable property cadastre to change the registration of ownership rights based on evidence on ownership of the legal predecessor of the enforcement debtor. Registration of Ownership Rights when Enforcement Debtor is not Registered as Owner Article 249 When under an enforceable document the enforcement creditor is authorised to request registration of lien or another right on immovable property, except the ownership right, against a enforcement debtor, and the enforcement debtor is not registered as owner of such immovable property, the registration of another right of the enforcement creditor shall be ordered only when enforcement creditor acts in the manner stipulated in Article 248 of this Law. Registration of Rights in Other Public Records Article 250 Provisions of this chapter shall apply to the registration of rights in other public records, unless otherwise stipulated by a specific law. Declaration of Will Article 251 Obligation of making declaration of will, contained in the ruling having a capacity of an enforceable document, shall be considered met as of the day on which such ruling becomes final. Obligation of making a declaration of will, contained in settlement, shall be considered met as of the day of its maturity. When meeting the obligation referred to in paragraph 1 of this Article depends on the enforcement creditor meeting some obligations or other condition, it shall be considered that the enforcement debtor made the declaration when the enforcement creditor met his obligation or when another condition is met. Fulfilment of conditions referred to in paragraph 3 of this Article shall be proven by a public document or document authenticated in accordance with law.

Title III SECURING OF CLAIMS PROCEDURE XXV. GENERAL PROVISIONS Ruling on Securing of Claims Article 252 Securing of claims ruling shall be adopted by the court, and securing of claims shall be enforced by the court or public enforcement officer, depending on the type and character of dispute. Securing of claims ruling shall include the decision on collateral, a brief description of legal reasons for adoption of the petition for securing of claims and notice whether a complaint withholds the enforcement of the ruling and legal remedy notice. Legal Remedies Article 253 A panel of the court that adopted the ruling shall decide on a complaint against the ruling on securing of claims, as well as on a complaint against a ruling by which the petition for securing of claims is rejected or dismissed. Complaint against the ruling referred to in paragraph 1 of this Article shall be filed within three days from the day of servicing the ruling. If a public enforcement officer is in charge of implementing the securing of claims ruling, the complaint shall, at the same time, be submitted to the public enforcement officer as well. Complaint shall not be filed against a response. The complaint referred to in paragraph 1 of this Article shall not delay enforcement of the ruling on securing of claims, unless otherwise prescribed by this Law. Collaterals Article 254 The following may be used as collateral: lien on immovable property on the basis of an enforceable document, lien on immovable property and movable assets on the basis of the agreement of the parties, previous measures and interim reliefs. Inadmissibility of Securing of Claims Article 255 Securing of claims shall not be allowed against assets and rights that in accordance with this Law or other law cannot be subject to enforcement. Jurisdiction to Order Securing of Claims Ex Officio Article 256 A court that has jurisdiction to decide on the petition of the security petitioner shall have the jurisdiction for ordering of securing of claims ex officio, unless otherwise stipulated by this Law. Application of Provisions concerning Enforcement Procedure Article 257

Provisions of this Law governing the enforcement procedure shall be applied accordingly to securing of claims procedure, unless otherwise stipulated by provisions of this part of the Law. XXVI. LIEN ON IMMOVABLE PROPERTY ON THE BASIS OF ENFORCEABLE DOCUMENT Territorial Jurisdiction Article 258 A court at the territory of which the immovable property that the lien is to be registered on is located shall have jurisdiction to decide on the petition for securing a monetary claim by establishing a lien on immovable property. The administration authority in charge of registration in the immovable property cadastre shall be in charge of enforcing securing of claims. Conditions for Establishment Article 259 On the basis of an enforceable document concerning a monetary claim, a security petitioner shall be entitled to request securing of that claim by establishment of a lien immovable property of the security contester. Manner of Establishment Article 260 Lien on immovables shall be established by registration in the immovable property cadastre. When registering a lien in the immovable property cadastre, enforceability of a claim for which securing by establishment of a lien is allowed shall be stated. If a security petitioner, prior to enforceability of the claim, has already acquired a lien for that claim in the same immovable property on the basis of a contract or if pre￾registration is registered, the court shall, at the petition of the security petitioner, order the registration of enforceability of the claim in the immovable property cadastre. If a security contester is not registered in the immovable property cadastre as the owner of immovable property, a security petitioner shall be obliged to submit together with the petition for securing of claim a proof that he initiated before the administration authority in charge of registration of rights in the immovable property cadastre the procedure for registration of the change of the ownership right on the basis of a document regarding ownership of security contester. Effect of Registration Article 261 Registration of lien and registration of enforceability of claim shall have such effect that enforcement on that immovable property may be implemented also against a third person who acquired such immovable property later on. XXVII. LIEN ON IMMOVABLE PROPERTY AND MOVABLE ASSETS ON THE BASIS OF AGREEMENT BETWEEN PARTIES Territorial Jurisdiction Article 262

A court at the territory of which the immovable property is located shall have jurisdiction to decide on the petition for securing a monetary claim by establishing a lien on immovable property on the basis of an agreement of parties. The administration authority in charge of the immovable property cadastre shall be in charge of enforcing securing of claims. A court at the territory of which the movable assets is located shall have jurisdiction to decide on the petition for securing a monetary claim by establishing a lien on movable assets on the basis of an agreement of parties. Petition for Securing a Claim Article 263 For the purpose of securing a monetary claim of a security petitioner by establishing a lien on immovable property or movable asset of security contester, the security petitioner and the security contester may agree to ask the court to order registration of lien on immovable property, or to order and take inventory of movable assets of the security contester. Hearing for Petition and Agreement of the Parties Article 264 At the petition of the parties, the court shall determine a hearing at which it will take minutes about the agreement of the parties regarding the existence of monetary claim and time of its maturity and their agreement to secure the monetary claim by registering a lien on immovable property of the security contester, or by establishing a lien by taking inventory of movable assets of the security contester. The signed minutes on the agreement of the parties referred to in paragraph 1 of this Article shall have the effect of a court settlement. Ordering and Enforcement of Securing of Claim Article 265 On the basis of the agreement referred to in Article 264 of this Law, the court shall order, in the form of a ruling, the registration and shall take all necessary measures to perform registration of lien on immovable property of the security contester, or order and take inventory of movable assets of the security contester. The ruling referred to in paragraph 1 of this Article shall have the effect of a ruling on securing of claims. Application of other Provisions of the Law Article 266 Article 264 of this Law shall apply to securing of monetary claims of the security petitioner by establishing a lien on immovable property of the security contester, on the basis of the agreement between the parties. Articles 83 to 88 of this Law shall apply accordingly to securing of monetary claims of the security petitioner by establishing a lien on movable assets of the security contester, on the basis of the agreement between the parties. Sale of Immovable Property or Movable Assets of the Security Contester Article 267

At the proposal of the security petitioner, public enforcement officer shall, in the form of a ruling, when he determines that the agreement of the parties referred to in Article 264 of this Law has become enforceable, order enforcement for the purpose of satisfying a secured monetary claim of the security petitioner in accordance with Articles 155 to 198 of this Law in case of enforcement on immovable property or Articles 82 to 101 of this Law in case of enforcement on movable assets. The ruling referred to in paragraph 1 of this Article shall have the effect of a writ of enforcement. The registration of a writ of enforcement on immovable property shall have the legal effect from the day of registration of lien on immovable property in the procedure of securing of claims. The act of taking inventory of movable assets shall not be repeated, and the taken inventory of assets shall have the legal effect from the day of acquiring of security interest in the procedure of securing of claims. XXVIII. PRIOR MEASURES Territorial Jurisdiction Article 268 A court that would have jurisdiction for enforcement on asset over which the securing of claim is proposed shall have territorial jurisdiction to decide on the petition for securing of claims by prior measure. Conditions for Ordering a Prior Measure Article 269 A prior measure shall be ordered on the basis of a decision concerning the monetary claim, which has not become final or has not become enforceable, if the security petitioner makes probable a danger that without such a security the satisfaction of the claim would be prevented or significantly hampered. Provision of paragraph 1 of this Article shall apply also to settlement reached before the court or body deciding in administrative procedure under which a claim has not matured. Prior measure may be ordered on the basis of a payment order issued on the basis of a bill of exchange or cheque. Assumed Danger Article 270 It shall be considered that a danger, under Article 269 of this Law, exists if the petition for securing a claim is based on one of the following:

1. a payment order that is issued on the basis of a bill of exchange or cheque that a complaint has been timely filed against;
2. a judgment adopted in a criminal case by which property-related claim has been adopted, and against which repeating of criminal procedure is allowed;
3. a decision by which enforcement is to be implemented abroad;
4. a judgment based on recognition that has been appealed;
5. a settlement reached before the court or body deciding in administrative procedure that is contested in the manner prescribed by law. In the cases referred to in paragraph 1, items 4 and 5 of this Article, the court may, at the proposal of the security contester, condition the securing of claims through application of a prior measure by depositing a surety by the security petitioner for the damage that might be incurred to the security contester through ordering a prior measure.

Securing of Claim having Unmatured Instalments Article 271 Securing by a prior measure unmatured instalments of a claim on the basis of legal subsistence, claim on the basis of damage compensation for the subsistence lost after the death of a provider of subsistence or due to impaired health or reduced or lost capacity to work shall be ordered only for the instalments that will mature within one year. In the cases referred to in paragraph 1 of this Article, it shall be assumed that a danger exists if enforcement for the purpose of paying matured instalment already had to be implemented or such enforcement has already been proposed against the security contester. Types of Prior Measures Article 272 The court shall order the following as prior measures:

1. Taking inventory of movable assets;
2. Prohibition imposed on a debtor of the security contester to satisfy the security contester’s claim or to hand over the assets to him/her, as well as prohibition imposed on the security contester to collect the claim, to receive the assets and to dispose of them;
3. Ban imposed on the security contester’s bank to pay out from the security contester’s account to the security contester or third person, based on the order of the security contester, the monetary amount that a prior measure has been determined for;
4. Pre-registration of lien on the immovable property of the security contester or in the right registered in the immovable property;
5. Seizure of shares or holdings in a business organization. The court may, at the proposal of the security petitioner, order, taking into consideration circumstances of the case, two or more prior measures, if it is required. Ban on Disbursing Monetary Assets of the Security Contester Article 273 The amount of monetary assets of the security contester on a bank account that disbursement ban has been imposed on cannot be transferred from that account, while the ban is in effect, except for the purpose of satisfaction of the secured claim. Sale of Inventoried Assets and Transfer of Claim of the Security Contester Article 274 At the proposal of the enforcement creditor, a public enforcement officer shall order the sale of inventoried movable assets that are perishable or if there is a danger from significant drop in price of these assets. The sale of inventoried assets shall be done in accordance with Articles 93 to 96 of this Law. If a prior measure is ordered through a ban on payment of the claim, a public enforcement officer may, at the proposal of the security petitioner or security contester, order the transfer of that claim for the purpose of its collection to the security petitioner, if there is a danger that the claim, due to the delay in its satisfaction of such claim, will not be collectable or the right to redress against third person shall be lost.

The amount obtained by the sale of assets or collection of claim shall be kept with a public enforcement officer until a prior measure is terminated or until the security petitioner proposes enforcement, but at the most 30 days from the day of enforceability of the claim. Ruling on Ordering Prior Measure Article 275 Ruling ordering a prior measure must, inter alia, specify the amount of claim that is secured, with interest and costs, and the period it has been ordered for. The period referred to in paragraph 1 of this Article may not be longer than eight days after meeting the conditions for involuntary enforcement. If the period referred to in paragraph 1 of this Article expires before the decision on the basis of which a prior measure is ordered becomes final, the court shall, at the proposal of the security petitioner, prolong that period, provided that the circumstances under which the measure has been ordered are not changed. Cancellation of Prior Measure Article 276 The court shall, at the proposal of the security contester, terminate the procedure and cancel the implemented actions, if:

1. Security contester deposits with the court the amount of the claim that is being secured, with interest and costs;
2. Security contester makes probable that the claim, at the time of adopting a ruling on ordering a prior measure, has already been collected or sufficiently secured;
3. It has been determined by a final decision that the claim has not occurred or that it has ceased. The court shall terminate the procedure and cancel the implemented actions, if within 15 days from the day of expiry of the period that the prior measure has been ordered for, the conditions for involuntary enforcement are not met. In the cases referred to in paragraph 1 items 2 and 3 and paragraph 2 of this Article, a security petitioner shall be obliged to compensate the costs caused by ordering and implementing a prior measure to a security contester, while the security contester shall have also the right to compensation for incurred damage from the security petitioner. Termination of Procedure in case the Security Petitioner does not Request Enforcement Article 277 In case the conditions for involuntary enforcement are met before the expiry of the period that prior measure has been ordered for, the court shall, at the proposal of the security contester, terminate the procedure and cancel all implemented actions, if the security petitioner does not submit the enforcement petition within 15 days from the day of occurrence of such conditions. XXIX. INTERIM MEASURES

1. General Rules Territorial Jurisdiction Article 278

In case that a civil or other court procedure has not been initiated, the court that would be in charge of deciding on enforcement petition shall have territorial jurisdiction to decide on the petition for securing of claim by an interim measure. If the civil or other court procedure is initiated, the court before which the procedure has been initiated shall have jurisdiction to decide on the petition for securing a claim by an interim measure. The court that had jurisdiction to decide on the enforcement petition based on an enforceable document adopted in administrative procedure shall have jurisdiction also to decide on the petition for ordering an interim measure upon the termination of such procedure. When Can an Interim Measure be Ordered Article 279 The court may order an interim measure prior to initiation and during the court or administrative procedure, as well as upon termination of such procedures, until the enforcement is implemented. Inadmissibility of Interim Measure Article 280 Interim measure shall not be admissible if there are conditions for ordering a prior measure that can achieve the same effect. Surety instead of Interim Measure Article 281 In the petition for ordering an interim measure or later, security petitioner may state that, instead of interim measure, he accepts a security contester depositing certain amount as a surety. Depositing of surety instead of interim measure may also be ordered at the proposal of security contester. If security contester deposits a surety, the court shall terminate the procedure and cancel already implemented actions. Surety as Condition for Ordering Interim Measure Article 282 The court may, at the proposal of the security petitioner, order an interim measure also when he/she did not make the existence of claim and danger probable, if he previously deposits, within the specified deadline, the amount determined by the court as surety for damage that could be incurred to the security contester by ordering and implementing the interim measure. The court may, at the proposal of the security contester, and based on circumstances of the case, act in accordance with paragraph 1 of this Article, even when the security petitioner made the existence of claim and danger probable. Ordering Several Interim Measures

Article 283 The court may, at the proposal of the security petitioner, order, taking into consideration circumstances of the case, more interim measures, if it is required. Period that Interim Measure is Ordered for Article 284 Ruling on ordering interim measure shall specify the duration of such measure, and if the measure is ordered prior to filing a court claim or initiation of other procedure, it shall also specify the deadline within which the security petitioner must file a court claim or petition for initiation of another procedure to justify the interim measure. The court shall at the petition of the security petitioner prolong the duration of the interim measure, provided that circumstances under which such a measure was ordered have not changed. The petition referred to in paragraph 2 of this Article may be filed only before the expiry of the period that the interim measure has been ordered for. Cancellation of the Interim Measure Article 285 If the security petitioner failed to file a court claim within a specified deadline or failed to initiate other procedure to justify an interim measure or the period that the interim measure has been ordered for has expired, the court shall, at the petition of the security contester terminate the procedure of securing a claim and cancel the implemented actions. At the petition of the security contester, the procedure of securing a claim shall be terminated and implemented actions shall be cancelled, if the circumstances due to which the measure was ordered have changed later on, so that the measure is no longer necessary. The procedure of securing a claim shall be terminated and implemented actions shall be cancelled in the cases referred to in Article 276, paragraph 1 of this Law. Compensation of Damage to Security Contester Article 286 Security contester shall be entitled to compensation by security petitioner for the damage incurred to him by an interim measure for which it has been determined that it was groundless or that has not been justified by the security petitioner. 2. Interim Measures for Securing of Monetary Claim Conditions for Ordering Interim Measure Article 287 Interim measure for securing a monetary claim may be ordered if the security petitioner made probable the existence of claim and the danger that without such a measure the security contester shall prevent or significantly hamper the collection of claim, by divesting of, concealing, or disposing of his property or assets. Security petitioner does not have to prove the danger if he makes probable that by the proposed measure the security contester would suffer only insignificant damage.

It shall be considered that danger exists, if a claim should be satisfied abroad. Types of Interim Measures for Securing of Monetary Claim Article 288 For the purpose of securing a monetary claim, any measure that achieves the purpose of such a security may be ordered, and especially:

1. Ban imposed on the security contester to dispose of movable assets, as well as safekeeping of such assets;
2. Ban to dispose of and encumber shares or holdings in a business organization, with the registration of such a ban in the relevant registry;
3. Ban imposed on the security contester to divest of or encumber his immovable property or property rights registered on the immovable property in the immovable property cadastre for his benefit, with the registration of such a ban in the immovable property cadastre;
4. Ban imposed on a debtor of the security contester to satisfy the security contester’s claim or to deliver the assets, as well as a ban imposed on the security contester to receive the assets, to collect the claim, and to dispose of them;
5. Order to a bank not to make payments from the security contester’s account to the security contester or third person, based on the order of the security contester, the monetary amount that an interim measure has been ordered for. Lien shall not be acquired by an interim measure.

3. Interim Measures for Securing of Non-Monetary Claim Conditions for Ordering Interim Measure Article 289 For the purpose of securing a non-monetary claim, an interim measure may be ordered, if the security petitioner made probable the existence of claim and danger that the satisfaction of claim shall be otherwise prevented or be significantly hampered. Interim measure may be ordered also when a security petitioner makes probable that the measure is needed in order to prevent the use of force or occurrence of irreparable damage. The provisions of Article 287 of this Law shall apply to interim measure for securing a non-monetary claim. Types of Interim Measures for Securing of Non-Monetary Claim Article 290 For the purpose of securing a non-monetary claim, any measure that achieves the purpose of such a security may be ordered, and especially:

1. Ban to divest of and encumber movable assets that the claim relates to, as well as safekeeping of such assets;

2. Ban to divest of and encumber shares or holdings in a business organization that the claim relates to, with the registration of the ban in the competent public records;

3. Ban to divest of and encumber immovable property that the claim relates to, with the registration of the ban in the immovable property cadastre;

4. Ban to the security contester to take activities that may incur damage to the security petitioner, as well as ban to make changes on assets that the claim relates to;

5. Ban imposed on a debtor of the security contester to deliver to the security contester the assets that the claim relates to;

6. Payment of wage compensation to an employee during the dispute regarding illegality of the decision on termination of employment, if it is necessary to do so for his/her subsistence and subsistence of persons he/she is obliged to support in accordance with law;

7. Reinstatement of employee to work. Effect of Ruling on Ordering Certain Interim Measures Article 291 Ruling on ordering the interim measure referred to in Article 288, paragraph 1, items 1, 2, 3 and 5 and Article 290, items 1, 2 and 3 of this Law shall have the effect of a writ of enforcement. By adopting the ruling referred to in paragraph 1 of this Article, it shall be considered that the enforcement is allowed. The enforcement of the ruling referred to in paragraph 2 of this Article shall be implemented by submitting the ruling to a body in charge of registration of rights, i.e. to a bank. Title IV TRANSITIONAL AND FINAL PROVISIONS Article 292 Enforcement and securing of claims procedures started before the effective day of this Law shall be completed in accordance with the provisions of this Law. Exceptionally, if an appeal is lodged against a first-instance ruling, or a complaint is lodged against a writ of enforcement based on an authentic document, the procedure on appeal, i.e. complaint, shall be completed in accordance with provisions of the Law on Enforcement Procedure (Official Gazette of the Republic of Montenegro, 23/04). If in the case referred to in paragraph 2 of this Article, after the effective day of this Law, the first-instance ruling is cancelled or abrogated, the further procedure shall be carried out in line with this Law. Article 292a Enforcement and securing of claims procedures started before the effective day of this Law shall be completed in accordance with this Law. If before the effective date of this Law first-instance ruling was adopted completing the procedure before the court, i.e. public enforcement officer, further procedure shall be continued in line with the Law on Enforcement and Securing of Claims (Official Gazette of Montenegro, 36/11, 28/14, 20/15 and 22/17). If after effective date of this Law a ruling referred to in paragraph 2 of this Article is cancelled, further procedure shall be carried our according to the provisions of this Law. Article 293

The court shall act, in accordance with this Law, in cases where a public enforcement officer has jurisdiction for, until the commencement of work of public enforcement officers that shall be appointed in accordance with a separate law. After commencement of the work of public enforcement officers, the cases referred to in paragraph 1 of this Article, at the proposal of the enforcement creditor, shall be ceded to a public enforcement officer for further action, in accordance with this Law. Article 294 Enforcement on monetary assets on account of a legal entity or entrepreneur shall be implemented by the Central Bank, in accordance with this Law, until the establishment of the organization for forced collection. Application of provisions of Articles 205 to 211 and provisions of Articles 213 to 215 of this Law shall commence after expiry of six months following the day of coming of this Law into effect. Until the expiry of the deadline referred to in paragraph 2 of this Article, the enforcement on monetary assets on the account of a legal entity or entrepreneur shall be implemented in accordance with provisions of the Law on Enforcement Procedure (Official Gazette of the Republic of Montenegro, 23/04). Article 294a Based on a bill of exchange that was used as a ground for initiating the enforcement procedure, the bill-of-exchange creditor may request enforcement in line with Article 218a of this Law only if, with the request for enforcement based on the bill of exchange, he/she submits to the organization for forced collection the evidence that the enforcement procedure that had been initiated earlier was terminated. Article 294b The organization for forced collection shall start delivering the data about accounts referred to in Article 136 paragraph 3 of this Law to the public enforcement officers after the expiry of three months of coming of this Law into effect. Article 294c 60 days from the day of coming of this Law into effect, public enforcement officers shall be obliged to invite enforcement creditors to make statements in terms of Articles 136a and 216a of this Law, unless the payment from the funds on the account of the enforcement debtor started based on the writs of enforcement submitted to the banks before this Law came into effect. Article 295 This Law shall supersedes the Law on Enforcement Procedure (Official Gazette of the Republic of Montenegro, 23/04) on the day it enters into force, except for provisions of Articles 72, 73, 94, 131, 141, 143, 190, 202, 208, 214, 218, 232, and 237 concerning the territorial jurisdiction of the court which shall cease to have effect on the day of commencement of work of public enforcement officers. Article 295a

Provisions of Title IIIa of this Law shall be applied from the day of accession of Montenegro to the European Union. Article 296 This Law shall enter into force on the expiry of 60 days from the day of its publication in the Official Gazette of Montenegro.