Policy of National Bureau of Enforcement of Georgia

8/2/2019 Policy of National Bureau of Enforcement of Georgia

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www.nbe.gov.ge

NATIONAL BUREAU OF ENFORCEMENTNATIONAL BUREAU OF ENFORCEMENT

ENFORCEMENT POLICYENFORCEMENT POLICY


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AIM OF THE ENFORCEMENT POLICYAIM OF THE ENFORCEMENT POLICYEnforcement Policy is a steering document, which defines main guidelines,Enforcement Policy is a steering document, which defines main guidelines,governing principles and a tudes of our organizaon by means of which ourgoverning principles and a tudes of our organizaon by means of which ourstakeholders presume us as an organizaon bearing an important public func-stakeholders presume us as an organizaon bearing an important public func-on.on.Enforcement Policy encourages our employees to carry out a more proacveEnforcement Policy encourages our employees to carry out a more proacveand effecve enforcement in favor of our stakeholders. Enforcement Policy isand effecve enforcement in favor of our stakeholders. Enforcement Policy isa prevenve mechanism which helps debtors avoid new debts.a prevenve mechanism which helps debtors avoid new debts.Enforcement Policy comes in tact with enforcement process and is a helpingEnforcement Policy comes in tact with enforcement process and is a helpingsource for enforcement offi cers which facilitates to the simplificaon of se ngsource for enforcement offi cers which facilitates to the simplificaon of se ngpriories on different stages of the enforcement process. Moreover, it helps uspriories on different stages of the enforcement process. Moreover, it helps usmaintain a uniformmaintain a uniformenforcement process.enforcement process.By the help of Enforcement Policy Naonal Bureau of Enforcement aims toBy the help of Enforcement Policy Naonal Bureau of Enforcement aims tomeet with the creditors demands and at the same me, uphold the rights ofmeet with the creditors demands and at the same me, uphold the rights ofthe debtors.the debtors.We carry out enforcement process in accordance with The Law on Enforce-We carry out enforcement process in accordance with The Law on Enforce-ment Proceedings and other by-law acts related to it. Our organizaon ensuresment Proceedings and other by-law acts related to it. Our organizaon ensuresthat all obligaons imposed on it will be fulfilled and that the high-quality ser-that all obligaons imposed on it will be fulfilled and that the high-quality ser-vice and full reporng is guaranteed.vice and full reporng is guaranteed.

PURPOSE OF AN ENFORCEMENT INSTITUTIONPURPOSE OF AN ENFORCEMENT INSTITUTIONMain purpose of an enforcement instuon is to restore violated rights of itsMain purpose of an enforcement instuon is to restore violated rights of itsstakeholders and to maintain balance between them in order to ensure thatstakeholders and to maintain balance between them in order to ensure thatjusce is guaranteed.jusce is guaranteed.Stakeholders of an enforcement instuon are private and legal persons, en-Stakeholders of an enforcement instuon are private and legal persons, en-es and the state or in other words those persons and enes whose rightses and the state or in other words those persons and enes whose rightshave been breached and the breaches are recognized in a respecve way.have been breached and the breaches are recognized in a respecve way.When a debtor fails to repay his debt or does not fulfill his obligaons, theWhen a debtor fails to repay his debt or does not fulfill his obligaons, thecreditor may apply to the only public organizaon which by the power of law,creditor may apply to the only public organizaon which by the power of law,


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is entled to use compulsory measures and help the creditor. This organiza-is entled to use compulsory measures and help the creditor. This organiza-on is the Naonal Bureau of Enforcement.on is the Naonal Bureau of Enforcement.Enforcement law imposes an important funcon on us. This funcon obligesEnforcement law imposes an important funcon on us. This funcon obligesus to act in respect to law, be just, fair, fast and daring. We bear responsibilityus to act in respect to law, be just, fair, fast and daring. We bear responsibilityfor all acons carried out by us.for all acons carried out by us.

NATIONAL BUREAU OF ENFORCEMENT NBENATIONAL BUREAU OF ENFORCEMENT NBENaonal Bureau of Enforcement is a legal person of public law under the ju-Naonal Bureau of Enforcement is a legal person of public law under the ju-risdicon of the Ministry of Jusce of Georgia. Naonal Bureau of Enforce-risdicon of the Ministry of Jusce of Georgia. Naonal Bureau of Enforce-ment, as an enty independently carrying out enforcement proceedings wasment, as an enty independently carrying out enforcement proceedings wasestablished in 2008.established in 2008.The purpose of the Naonal Bureau of Enforcement is to carry out enforce-The purpose of the Naonal Bureau of Enforcement is to carry out enforce-ment of judiciary, administrave and other legal decisions. In order to be ablement of judiciary, administrave and other legal decisions. In order to be ableto achieve this purpose Naonal Bureau of Enforcement carries out enforce-to achieve this purpose Naonal Bureau of Enforcement carries out enforce-ment procedures within which it is entled to use compulsory measures.ment procedures within which it is entled to use compulsory measures.The system of the Naonal Bureau of Enforcement consists of its territorialThe system of the Naonal Bureau of Enforcement consists of its territorialbureaus and structural enes (offi ces) that guarantee the daily flow of en-bureaus and structural enes (offi ces) that guarantee the daily flow of en-forcement proceedings.forcement proceedings.

RIGHTS AND EXPECTATIONS OF OUR STAKEHOLDERSRIGHTS AND EXPECTATIONS OF OUR STAKEHOLDERSOur stakeholders are pares a parcular claim a creditor and a debtor, asOur stakeholders are pares a parcular claim a creditor and a debtor, aswell as parcipants in the public aucons including winners in the biddingwell as parcipants in the public aucons including winners in the bidding(the buyers); instuons involved in the process of enforcement who are as(the buyers); instuons involved in the process of enforcement who are aswell responsible for the provision of all the necessary informaon regardingwell responsible for the provision of all the necessary informaon regardingthe debtors economic well-being and se ng limits on property ownershipthe debtors economic well-being and se ng limits on property ownershiprights as well as third pares whose movable property may become subjectrights as well as third pares whose movable property may become subjectto seizure.to seizure.Rights of the creditors and debtors are the following:Rights of the creditors and debtors are the following:


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Follow the whole flow of the enforcement process;Follow the whole flow of the enforcement process; Receive full informaon regarding enforcement procedures includingReceive full informaon regarding enforcement procedures includingall acons planned by the enforcement offi cer.all acons planned by the enforcement offi cer. Take part in the aucons held by us and purchase assets;Take part in the aucons held by us and purchase assets; Aend different enforcement acons and facilitate to the enforce-Aend different enforcement acons and facilitate to the enforce-ment of the verdictment of the verdict Facilitate to the effecve enforcement of a claim by means of acveFacilitate to the effecve enforcement of a claim by means of acveinvolvement in the process;involvement in the process; To receive consultaons regarding enforcement acons, condions forTo receive consultaons regarding enforcement acons, condions forthe aucon and other legal issues;the aucon and other legal issues; Before the aucon is announced creditors and debtors may:Before the aucon is announced creditors and debtors may:

Come to an agreement;Come to an agreement;Introduce people interested to purchase the property on sale;Introduce people interested to purchase the property on sale;Submit a conclusion of an independent valuaon expert on the prop-Submit a conclusion of an independent valuaon expert on the prop-erty to sell before the Naonal Bureau of Enforcement carries outerty to sell before the Naonal Bureau of Enforcement carries outvaluaon;valuaon;Take part in the aucon held by the Naonal Bureau of EnforcementTake part in the aucon held by the Naonal Bureau of Enforcementand purchase the property;and purchase the property;Choose how to appeal any act of an enforcement offi cer in courtChoose how to appeal any act of an enforcement offi cer in courtor with the Chairman of the Naonal Bureau of Enforcement whoseor with the Chairman of the Naonal Bureau of Enforcement whoserefusal to appeal may be later appealed in court.refusal to appeal may be later appealed in court.

Receive informaon regarding enforcement procedures including theReceive informaon regarding enforcement procedures including theground for the iniaon of the enforcement procedures, development ofground for the iniaon of the enforcement procedures, development ofinvesgaon, rights and obligaons of the involved pares, aucon rules,invesgaon, rights and obligaons of the involved pares, aucon rules,etc.etc. Take part in the aucons held by us and purchase assets;Take part in the aucons held by us and purchase assets; To see case documentaon if they represent legal pares of the claimTo see case documentaon if they represent legal pares of the claim


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or if this rights and interests (except documentaon that contain secretor if this rights and interests (except documentaon that contain secretinformaon and are not for public use)informaon and are not for public use) To appeal decisions made by enforcement offi cers that are perceivedTo appeal decisions made by enforcement offi cers that are perceivedto breach against their rights and interests.to breach against their rights and interests.Expectaons of our stakeholdersExpectaons of our stakeholdersAll our stakeholders expect:All our stakeholders expect:

High quality of enforcement proceedings;High quality of enforcement proceedings;Simple procedures;Simple procedures;Their me and financial resources not to be wasted;Their me and financial resources not to be wasted;Their rights to be respected and interests taken into consideraon;Their rights to be respected and interests taken into consideraon;

Treatment which is full of respect and aenon;Treatment which is full of respect and aenon;Received informaon to be reliable;Received informaon to be reliable;The possibility to use their rights.The possibility to use their rights.

Moreover, separate pares of the enforcement process creditor, debtor andMoreover, separate pares of the enforcement process creditor, debtor andparcipants in the aucon held by us, have specific expectaons:parcipants in the aucon held by us, have specific expectaons:Creditors expect:Creditors expect:

fast and effecve restoraon of their legal rights and repayment offast and effecve restoraon of their legal rights and repayment oftheir debt in the face of financial means, property or in any other ac-their debt in the face of financial means, property or in any other ac-ceptable manner;ceptable manner;receiving without delay all the necessary informaon regarding thereceiving without delay all the necessary informaon regarding theclaim or acons to be taken by the enforcement offi cer;claim or acons to be taken by the enforcement offi cer;to receive a desired result in as short a me and with as lile expensesto receive a desired result in as short a me and with as lile expensesa possible.a possible.

Debtors expect:Debtors expect:full informaon about creditors demands, addional fees and com-full informaon about creditors demands, addional fees and com-


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pulsory measures that are to be taken against them;pulsory measures that are to be taken against them;to be able to voluntarily comply with the creditors demands;to be able to voluntarily comply with the creditors demands;to be able to fulfill their financial liabilies;to be able to fulfill their financial liabilies;to have immediate and full informaon about enforcement proce-to have immediate and full informaon about enforcement proce-dures taken against them;dures taken against them;to appeal for a delay of enforcement procedures due to the unfavor-to appeal for a delay of enforcement procedures due to the unfavor-able condions in the family or regarding health;able condions in the family or regarding health;their case to be treated individually and with aenon;their case to be treated individually and with aenon;

Expectaons of the parcipants of the aucon and the buyers:Expectaons of the parcipants of the aucon and the buyers:Parcipants of the aucon and potenal buyers become involved in the en-Parcipants of the aucon and potenal buyers become involved in the en-forcement process from the date aucon is announced. They expect:forcement process from the date aucon is announced. They expect:

To receive quality aucon service with terms and condions that areTo receive quality aucon service with terms and condions that aresophiscated and easy to understand;sophiscated and easy to understand;To be able to purchase the property/assets in a favorable environ-To be able to purchase the property/assets in a favorable environ-ment;ment;To receive full informaon and be able to visually examine the assetTo receive full informaon and be able to visually examine the assetthat they are intending to bid for;that they are intending to bid for;To receive legal consultancy regarding the transfer of property rightsTo receive legal consultancy regarding the transfer of property rightsand consequences of the purchase;and consequences of the purchase;To start bidding froTo start bidding from an adequate starng price;m an adequate starng price; To take possession of the newly purchased property aer the auconTo take possession of the newly purchased property aer the auconis over;is over; To be able to use the property aer it has been purchased.To be able to use the property aer it has been purchased.


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ENFORCEMENT PROCEEDINGSENFORCEMENT PROCEEDINGSOur a tudes and approaches are uniform, but at the same me we priori-Our a tudes and approaches are uniform, but at the same me we priori-ze claims that demand immediate acon from our side. Such claims are:ze claims that demand immediate acon from our side. Such claims are:claims of new creditors, new informaon about the debtor which needsclaims of new creditors, new informaon about the debtor which needsto be carefully studied or demands compulsory acons, alimony claims;to be carefully studied or demands compulsory acons, alimony claims;claims concerning reimbursement of damages caused by criminal acvity;claims concerning reimbursement of damages caused by criminal acvity;expensive claims and claims to be enforced in favor of the state budget.expensive claims and claims to be enforced in favor of the state budget.Every new claim is a ground for new invesgaon for us. We start enforce-Every new claim is a ground for new invesgaon for us. We start enforce-ment procedures as soon as a new claim is registered. Aer registraonment procedures as soon as a new claim is registered. Aer registraonthe claim is handed over to an enforcement offi cer or an enforcementthe claim is handed over to an enforcement offi cer or an enforcementteam who plan further acons and with no delay takes measures whichteam who plan further acons and with no delay takes measures whichare vital to successful enforcement of a claim.are vital to successful enforcement of a claim.We consider that our Debtor Register is of vital importance in propertyWe consider that our Debtor Register is of vital importance in propertysearch and repayment of the debt. For this reason, enforcement processsearch and repayment of the debt. For this reason, enforcement processstarted as a result of a new claim is a base for registering new debtors instarted as a result of a new claim is a base for registering new debtors inthe Debtor Register. When registered as debtor, as provisioned by the law,the Debtor Register. When registered as debtor, as provisioned by the law,we set a packet of certain condions and limits on the debtor.we set a packet of certain condions and limits on the debtor.

In order to keep the debtor informed we send him/her a noficaon leerIn order to keep the debtor informed we send him/her a noficaon leerwhere we inform him/her how to voluntary comply with the creditors de-where we inform him/her how to voluntary comply with the creditors de-mands and avoid selling off of his/her movable and immovable property,mands and avoid selling off of his/her movable and immovable property,as well as property rights at the aucon.as well as property rights at the aucon.From the very moment enforcement process is launched we start searchFrom the very moment enforcement process is launched we start searchfor the property and aachment procedures so that we do not wait forfor the property and aachment procedures so that we do not wait forthe deadline of the period for voluntary payment by the debtor to end. Inthe deadline of the period for voluntary payment by the debtor to end. Inorder to carry out aachment of the property of the debtor, first of all, weorder to carry out aachment of the property of the debtor, first of all, weturn to:turn to:

To banking instuons in order to invesgate whether the debtorTo banking instuons in order to invesgate whether the debtorowns bank accounts we can aach;owns bank accounts we can aach;Registering bodies to invesgate and limit property rights on the im-Registering bodies to invesgate and limit property rights on the im-movable property, non-material property goods, automobiles, marinemovable property, non-material property goods, automobiles, marineand air vehicles and weapons.and air vehicles and weapons.


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The debtor and those persons who are pares of the contract whoThe debtor and those persons who are pares of the contract whomight be able to give full informaon about the debtors economicmight be able to give full informaon about the debtors economicsituaon.situaon.We visit a debtors home or if a debtor is a legal person or an organiza-We visit a debtors home or if a debtor is a legal person or an organiza-on, the work place. We describe, register and valuate the property.on, the work place. We describe, register and valuate the property.When arresng movable property, we consider that the property that is in hisWhen arresng movable property, we consider that the property that is in his

possession is owned by him, but at the same moment we study the actualpossession is owned by him, but at the same moment we study the actualownership situaon at place and register the property respecvely in the actownership situaon at place and register the property respecvely in the actof seizure. Moreover, we do not arrest the property that is of vital importanceof seizure. Moreover, we do not arrest the property that is of vital importanceto the debtors everyday life or represent his/her main income that does notto the debtors everyday life or represent his/her main income that does notexceed the living wageexceed the living wage

We turn to our valuaon experts the valuaon offi ce, when carryingWe turn to our valuaon experts the valuaon offi ce, when carryingout property valuaon, in case valuaon of a parcular piece of propertyout property valuaon, in case valuaon of a parcular piece of propertydemands a more specific experse in the field. Valuaon experts havedemands a more specific experse in the field. Valuaon experts havevaluaon limits and boom-line and receive full informaon about thevaluaon limits and boom-line and receive full informaon about theproperty including photographs from us. Enforcement offi cers assist val-property including photographs from us. Enforcement offi cers assist val-uaon offi cers while inspecng the site. We know that exact valuaon ofuaon offi cers while inspecng the site. We know that exact valuaon ofthe property is of vital importance in order to protect pares from dam-the property is of vital importance in order to protect pares from dam-ages caused by the misevaluaon and realizaon of the property. Anyages caused by the misevaluaon and realizaon of the property. Anydamage made by us to our stakeholders is a damage made to our owndamage made by us to our stakeholders is a damage made to our ownimage and financial condion. For this reason, our valuaon offi cers tryimage and financial condion. For this reason, our valuaon offi cers tryto set the esmated market price based on all the informaon includingto set the esmated market price based on all the informaon includingdata received from the enforcement offi cer as well as knowledge aboutdata received from the enforcement offi cer as well as knowledge aboutthe property acquired aer the inspecon at the address personally bythe property acquired aer the inspecon at the address personally bythe valuaon offi cer.the valuaon offi cer.We grant the debtors and creditors a possibility to submit expert valuaonWe grant the debtors and creditors a possibility to submit expert valuaonstatements by the me we make our own valuaon of the property. If westatements by the me we make our own valuaon of the property. If weconsider that valuaon statements submied by them are trustworthy,consider that valuaon statements submied by them are trustworthy,we start the realizaon process. If doubts arise, we start se ng the mar-we start the realizaon process. If doubts arise, we start se ng the mar-ket price.ket price.We strictly control the me and try to fit all enforcement procedures start-We strictly control the me and try to fit all enforcement procedures start-ing from sending a noficaon to the debtor and finishing with distribut-ing from sending a noficaon to the debtor and finishing with distribut-


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ing the money among creditors, into the melines determined by the law.ing the money among creditors, into the melines determined by the law.For this reason, we carefully plan all proceedings beforehand by deter-For this reason, we carefully plan all proceedings beforehand by deter-mining presumable period of me needed for a certain acvity and setmining presumable period of me needed for a certain acvity and setmidterm and final dates.midterm and final dates.We encourage the debtor to cover the debt within 12 months with pay-We encourage the debtor to cover the debt within 12 months with pay-ment-by-installment. The Creditors agreement is of first relevance whenment-by-installment. The Creditors agreement is of first relevance whenenforcing private claims, which is notenforcing private claims, which is not thethe case with public claims. With ad-case with public claims. With ad-ministrave claims we discuss debtors request, examine his/her financialministrave claims we discuss debtors request, examine his/her financialcondions and make decision accordingly so that neither the creditors orcondions and make decision accordingly so that neither the creditors orthe debtors rights are violated.the debtors rights are violated.We carefully carry out preparatory procedures before an aucon takesWe carefully carry out preparatory procedures before an aucon takesplace: we study physical and legal state of the property and make full in-place: we study physical and legal state of the property and make full in-formaon about the property publicly available. We let pares interestedformaon about the property publicly available. We let pares interestedin buying the property examine and see the asset at the indicated address/in buying the property examine and see the asset at the indicated address/locaon.locaon.Aer the aucon is over we make a plan for distribuon of the money be-Aer the aucon is over we make a plan for distribuon of the money be-tween the creditors in as short a me as possible. The rest of the moneytween the creditors in as short a me as possible. The rest of the moneygoes back to the debtor. In case we fail to sell the property on the aucon,goes back to the debtor. In case we fail to sell the property on the aucon,we li aachment on the property and return it back to the debtor.we li aachment on the property and return it back to the debtor.We do not limit debtors but let them sell the attached property onWe do not limit debtors but let them sell the attached property ontheir own and present persons interested in purchasing the property.their own and present persons interested in purchasing the property.In such cases it is required that the price the property has been pur-In such cases it is required that the price the property has been pur-chased at is enough to repay the debt as well as cover the NBE servicechased at is enough to repay the debt as well as cover the NBE servicefee;fee;We offer consultancy service to any person interested in legal issues re-We offer consultancy service to any person interested in legal issues re-lated to enforcement procedures and the methodology we use;lated to enforcement procedures and the methodology we use;Every employee is obliged to submit monthly report to his immediate su-Every employee is obliged to submit monthly report to his immediate su-pervisor. Heads of all internal offi ces are obliged to report to the Head ofpervisor. Heads of all internal offi ces are obliged to report to the Head ofthe Naonal Bureau of Enforcement. Reports should completely depictthe Naonal Bureau of Enforcement. Reports should completely depictwork processes and stasc. According to these reports NBE makes anwork processes and stasc. According to these reports NBE makes anannual report which is published on our website and is publicly available.annual report which is published on our website and is publicly available.


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By doing this we make enforcement process completely transparent andBy doing this we make enforcement process completely transparent andtry to deepen our trustworthiness.try to deepen our trustworthiness.

PREVENTIVE MEASURESPREVENTIVE MEASURESWe emphasize the importance prevenve measures and use various re-We emphasize the importance prevenve measures and use various re-sources in order to make informaon about the debtors obligaons avail-sources in order to make informaon about the debtors obligaons avail-able to everyone. By doing this we facilitate to the increase of the aware-able to everyone. By doing this we facilitate to the increase of the aware-ness of legal issues among our ordinary cizensness of legal issues among our ordinary cizensWe help creditors and debtors by explaining their obligaons to them soWe help creditors and debtors by explaining their obligaons to them sothat they are able to fully and mely guard their rights during the enforce-that they are able to fully and mely guard their rights during the enforce-ment process.ment process.We help creditors and debtors by explaining their rights to them so thatWe help creditors and debtors by explaining their rights to them so thatthey do not default on their own obligaons causing an unfavorable legalthey do not default on their own obligaons causing an unfavorable legalconsequence.consequence.We encourage pares of a claim to come to an agreement. We parcipateWe encourage pares of a claim to come to an agreement. We parcipatein defining condions for the agreement and present them to the court.in defining condions for the agreement and present them to the court.

FUTURE PERSPECTIVESFUTURE PERSPECTIVESIn order to enhance our acvies we make use of all possible means ofIn order to enhance our acvies we make use of all possible means ofInformaonal Technologies, the purpose of which is to simplify electronicInformaonal Technologies, the purpose of which is to simplify electroniccase management, data elaboraon process, accounng and communica-case management, data elaboraon process, accounng and communica-on.on.We believe that as an authority we can only progress through increasingWe believe that as an authority we can only progress through increasingcompetence professionalism of our employees. For this reason, we con-competence professionalism of our employees. For this reason, we con-nuously improve our internal educaon and work evaluaon.nuously improve our internal educaon and work evaluaon.Developments in the field of stascs and analysis will support evaluangDevelopments in the field of stascs and analysis will support evaluangour work processes and discovering our weaknesses in order to know inour work processes and discovering our weaknesses in order to know inwhich direcon to move further.which direcon to move further.Constant amendments and improvements made to the legislaon areConstant amendments and improvements made to the legislaon are


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aimed at compiling a well-elaborated legislave base.aimed at compiling a well-elaborated legislave base.Honesty of our staff and raising the quality of our services will enhance theHonesty of our staff and raising the quality of our services will enhance thesocietys trust, benevolent disposion and support towards us.societys trust, benevolent disposion and support towards us.

Chairman,Chairman,Naonal Bureau of EnforcementNaonal Bureau of Enforcement


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Policy of National Bureau of Enforcement of Georgia

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