“How a borrower can be threatened by a notary. What pitfalls hides new extrajudicial debt recovery procedures by banks”. The article of Samvel Karakhanyan for “Vedomosti”

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23 December 2016

“How a borrower can be threatened by a notary. What pitfalls hides new extrajudicial debt recovery procedures by banks”. The article of Samvel Karakhanyan for “Vedomosti”

Typically, banks appeal to courts in the event of non-performance or improper performance of obligations by borrowers. The right to recover arrears in court is stipulated in any credit contract. However, in mid-2016 creditor banks acquired the right for a simplified recovery of debts. The “Fundamentals of Notaryship Legislation of the Russian Federation” were amended to provide for the debt recovery under the credit contracts without recourse to the court (extrajudicial procedure): on the basis of enforcement inscription by a notary.

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