Regulatory Alerts2006-01-20
Ordinance No. 35 on the Procedure for Auction Sale of Movables Placed as Collateral with a Bank
Issued by the Ministry of Justice and Legal Eurointegration and the Bulgarian National Bank, this Ordinance establishes the legal framework for banks to auction movable collateral following a loan default without court litigation. It mandates specific procedural requirements including the formation of an Auction Commission, independent valuation of assets, and strict public announcement timelines to ensure transparency. The regulation further details participant eligibility, bidding mechanics for open and sealed auctions, and the allocation of proceeds to satisfy bank claims while providing mechanisms for legal appeals.
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