Execution against movable property shall be governed by Articles 844 879 of the Code of Civil Proceedings. Provisions on execution against movable property shall apply respectively to the execution against animals unless contrary to the provisions of animal protection law (Article 844 [1] of the Code of Civil Proceedings).

In this e-note:

• The concept of movable property
• Execution against movable property

The concept of movable property

The Polish Civil Code does not define the concept of movable property. Article 46 § 1 CC defines the things that are real property. These are:

• land
• buildings permanently attached to the land
• parts of such buildings, if under special detailed legislation they constitute property separate from the land.

Anything that is not real property or a component part of real property is assumed to be movable property.

The following is not movable property:

• liquids and gases in the unbound state (water, air) - after being encased in an closed vessel, they become movable property
• unextracted mineral deposits - following extraction minerals become movable property
• wild animals living at large (birds, land animals, aquatic animals) - following domestication they become movable property
• personal property specified in Article 23 of the Civil Code
• goods that are subject to copyrights (Works of literature, scientific works, artistic creations)
• trade marks
• energy (in its various forms: nuclear, electric)
• goods specified in the industrial property law, such as industrial designs, inventions.

Execution against movable property

1. Jurisdiction of the judicial officer in execution against movable property

Execution against movable property belongs to the judicial officer of the Court in whose district

the movable property is located unless the creditor avails of the right to select a judicial officer. Such right enables the creditor to choose the judicial officer to carry out the execution outside the local jurisdiction pursuant to and within the limits set out in Article 8 of the Law on Judicial Officers and Enforcement

2. Seizure of movable property

The judicial officer shall initiate the execution against the movable property by its seizure.

The debtor's movable property subject to seizure:

• is in his/her possession,
• or in the possession of the creditor, who has provided for the execution against it,
• is in possession of a third party, but only if:
• a) the third party consents to it being seized
• b) or acknowledges that it is the property of the debtor
• c) and in cases specified in provisions of law .

In the case of enforcement against maintenance obligations, the judicial officer may also seize the movable property which is in possession of a person residing together with the debtor, without the consent of that person, unless such person provides proof that the movable property belongs to him/her.

No more than the movable property required to satisfy the claim and costs of enforcement should be seized.

3. Execution against the fractional part of movable property

Execution against the fractional part of the movable property which is owned jointly by several persons shall be carried out in the manner prescribed for the execution against movable property, provided that only the debtor's share is subject to sale. Other co-owners are jointly eligible to request that the whole property be sold. In case the co-owners of the seized movable property request that the whole property be sold, the selling price shall be divided as follows:

• the part corresponding to the debtor's share goes to the debtor
• while the remaining parts go to respective co-owners.

4. Protocol of the seizure of movable property

The judicial officer documents the seizure by entering the movable property to the seizure protocol. A copy the seizure protocol should be served to:

• the debtor
• co-owners of the seized movable property who are not debtors.

Pursuant to Article 763 CCP, the judicial officer shall notify the party of any of the actions performed, the date of which such party has not been notified of, and at which the party has not been present. In accordance with the above, a copy of the seizure protocol shall be also delivered to the creditor.

The debtor should during the seizure, or if he/she has not been present, immediately upon receipt of a copy of the seizure protocol, provide to the judicial officer in possession of his/her movable property addresses of any third parties who are entitled to exemption from the execution of such property. The judicial officer shall notify the persons indicated by the debtor about the seizure.

5. The results of the seizure of movable property

The seizure results in that the disposal of the movable property following the seizure has no bearing on any further course of the proceedings, and the enforcement against the movable property may be continued against the buyer. If the debtor has disposed of the movable property following its seizure, the judicial officer continues the enforcement against the buyer, whom he shall notify about the status of the enforcement proceedings. The judicial officer shall make a mention of the notification to the buyer in the case records. This provision shall not constitute a breach of the provisions on good-faith buyer protection.

6. Interruption in the seizure of movable property

If the judicial officer interrupts the seizure, he/she shall, where appropriate, undertake steps to prevent the removal of movable property not yet seized.

7. The presence of the creditor during the seizure

The creditor may request that the seizure is carried out in his/her presence. In such case, the judicial officer shall notify him/her of the date the seizure is to be performed. If the creditor does not appear at the date and time designated, the judicial officer shall carry out the seizure in his/her absence.

If the judicial officer, without notice to the creditor, made the seizure in his/her absence, the creditor may request verification of the seizure with his/her participation.

8. Repeated seizure against movable property

If the movable property once seized is to be seized in satisfaction of other claims, the judicial officer shall perform a new seizure by making an entry to that effect in the first seizure protocol. The creditor may require the judicial officer to verify the movable property seized under the protocol; the judicial officer shall document such verification in the protocol.

9. Seizure of money

Out of the seized money the judicial officer shall satisfy the creditors, and if the amount is not sufficient to meet all the creditors, he/she shall deposit it in the deposit account of the Court in order to divide it. Depositing the money in the deposit account of the Court shall be done also in the event an objection has been raised that a third party has a claim to the money seized, which constitutes an obstacle to the money being handed over to the creditor. The Court shall rule whether to hand the money over to the creditor, unless within one month from it being deposited into the deposit account of the Court a decision by the competent court is filed that would exempt it from seizure or that would stay the handing over of the money. The court ruling ordering the money to be handed over is subject to appeal. The ruling is enforceable only upon becoming final.

10. Assessment of seized movable property

Unless a special provision provides otherwise, the judicial officer assess the value of the seized movable property and enters it in the seizure protocol. The judicial officer performs the assessment of the value of the seized movable property during the seizure. The value of each item of the movable property should be entered into the seizure protocol individually. The judicial officer shall not make a collective assessment of seized movable property. The judicial officer shall make the assessment on his/her own, guided by his/her own expertise. If the circumstances preclude an independent assessment by the judicial officer (lack of specialized expertise), the assessment shall be performed by an expert.

The judicial officer is obliged to appoint an expert in the following cases:

• the debtor or the creditor is objecting to the assessment of the movable property (as being underestimated or overestimated)
• assessment of seized items of historic or artistic value
• assessment of items made of gold or platinum, with the exception of everyday items.

The expert performing the assessment of the seized movable property shall be only a regular court appointed expert from the list of court appointed experts maintained by the President of the district court. If the list of regular court appointed experts does not include an expert of the specialty required, the judicial officer shall request that the Court appoint an expert and swear him/her in.

The assessment made by the judicial officer may be subject to a complaint. The complaint shall be lodged with the judicial officer during the seizure of the movable property, and if that is not possible, by the day of the auction. The complaint thus lodged results in the requirement to appoint an expert to perform the assessment. The assessment performed by the court appointed expert may be subject to a complaint to the district court against the judicial officer's action. The parties entitled to filing a complaint are:

• creditor
• debtor
• public prosecutor, the Ombudsman, a social organization.

11. Designating the seized movable property

Each item of movable property shall be marked by the judicial officer with a mark outwardly designating its seizure, and if that is not possible, he/she shall make it known by other means.

12. Supervision of the seized movable property

The judicial officer shall leave the seized property to be held by the person, from whom it was seized. However, for important reasons, the judicial officer may at any stage of the proceedings hand over the seized movable property to another person, including the creditor, even if it necessitates the transfer of the property. Such persons shall perform the duty of a caretaker. The judicial officer shall serve them with the seizure protocol.

The duties of the caretaker of the seized movable property

The caretaker or the debtor who have been entrusted with the holding of the movable property is required to hold it with such diligence as to prevent their losing value, and to hand it over at the request of the judicial officer, as required by the court, or at the joint request of both parties. If, at the request to surrender the movable property, the caretaker or the debtor does not hand it over, the judicial officer takes it away from him/her.

The caretaker is obligated to inform the judicial officer of an intended change in the location of the movable property.

Responsibility of the caretaker

The caretaker is not responsible for any:- deterioration,

• failure,
• destruction, or
• loss of the seized movables, if he/she conducted supervisory duties with such care, so as to prevent their loss of value. The debtor is not eligible to seek redress against the creditor due to damage or loss of the movables seized during their transportation, shipping or storage with the caretaker.

Remuneration of the caretaker of seized movable property

The caretaker may require:

• reimbursement of expenses associated with the holding
• and remuneration for caretaking, in accordance with the inconvenience sustained.

The right to remuneration for the exercise of caretaking duties and to a reimbursement of any expenses associated with holding of the movables is not due to:

• the debtor
• the family residing at the location of the debtor
• any third party with whom the movable property has been seized.

The amount of reimbursement and remuneration due shall be established by the judicial officer, who shall notify the parties and the caretaker of such reimbursement and remuneration. The decision of the court as to the reimbursement of expenses and remuneration shall be subject to an appeal by the caretaker.

Change of the caretaker of the seized movable property

For valid reasons the judicial officer may release the caretaker and establish another one.

The change of the caretaker shall be established by the judicial officer after hearing the parties, unless an immediate change is necessary.

Supervision of the debtor and of a third party over the seized movable property

If the seized movables have been left in the room belonging to the debtor and the supervision has been entrusted to himself/herself, or a member of his/her family residing with him/her, they have the right to exercise normal use of the movable property, as long as it does not lose its value because of such use. Also, a third party under whose supervision the judicial officer has left the seized movable property of the debtor may use it, if he/she is entitled to do so.

Account of income

If the property placed under supervision of a person not entitled to use it (a person other than the one listed in point 12.5) is generating income, the caretaker is required to submit to the judicial officer an account of such income upon the termination of his/her supervision. The net income after deducting expenses shall be deposited in the court's deposit account. The income thus obtained goes primarily to pay for the caretaker's remuneration, and the remainder is added to the amount obtained from the execution and, in case of discontinuance of the execution, shall be paid to the debtor.

13. SALE OF MOVABLE PROPERTY

Sale of the movable property seized may not take place earlier than on the seventh day from the date of the seizure.

The sale of the seized movables may occur directly following the seizure, if:

• the movable property is easily spoiled or if exercising supervision over it or holding of it would result in excessive costs;
• the seized property is livestock and the debtor has refused to hold it under supervision.

The sale directly following seizure is an exceptional situation. The judicial officer shall assess whether circumstances exist to enable such a sale.

In accordance with the applicable legislation we distinguish several ways to sell seized movable property. These are:

• sale by private treaty
• sale to a trade company
• sale on commission
• an auction
• taking ownership of movable property by the creditor with an enforcement title.

Seized movables may be subject to sale by means of several successive ways, depending on the type of movable property involved, requests submitted or decisions of the judicial officer.

The manner of sale is decided by the following:

• type of movable property
• a requirement to file a request by the party or no need thereof
• the result of the sale method used that enables another mode of sale.

Sale requiring a request being filed:

1) sale to a trade company:

• at the request of the creditor
• or at the request of the debtor

2) sale on commission:

• at the request of the creditor

3) Taking ownership of movable property by the creditor with an enforcement title:

• at the request of the creditor

Sale requiring the consent of the parties:

sale by private treaty

• consent of the debtor
• consent of creditors

Sale by private treaty - Article 864 [1] of the Code of Civil Proceedings

The judicial officer may sell the movables by private treaty, if the debtor has given his/her consent to such a sale and specified a minimum selling price. The sale may not take place earlier than after fourteen days from the date of the assessment of movable property. The sale can be completed only if the creditors have given their consent to it. In practice, sale by private treaty is not a common form of sale.

The following are not subject to sale by private treaty:

• movables prone to spoilage
• movables over which the exercise of supervision or holding of which would result in excessive costs
• livestock if the debtor has refused to exercise supervision over it
• objects made of gold or platinum with the exception of everyday items
• objects made of gold or platinum of no utilitarian value
• foreign currency seized in the course of execution
• Conditions for sale by private treaty are specified in Article 864 [1] CCP. Sale by private treaty is possible when:
• the debtor has consented to such form of sale
• the debtor has specified a minimum selling price
• creditors have consented to such form of sale.

It should be emphasized that the above conditions apply only in a situation where the law does not preclude sale by private treaty of the movable property involved.

Remarks:

• the judicial officer may sell movables by private treaty that are either used or unused
• the consent of the debtor and creditor to sale by private treaty should be given in writing (may also be made in the protocol drawn by the judicial officer)
• provisions of the Code of the Civil Proceedings do not provide for the exact manner in which the debtor establishes the minimum price, nor indicate the limits of the purchasing price
• movables that have not been sold by private treaty are sold by the judicial officer by way of a public auction

Sale as specified in Article 865 § 1 CCP - sale to a trade enterprise

Movable property seized:

• unused, and
• being an article of trade (the conditions set out in point 1 and 2 must both be met) can at the request of a party be sold by the judicial officer to an operator engaged in trade of such movables. The sale is conducted at wholesale prices, and when such prices are not documented, at prices 25% lower than the estimated value of the movable property. The estimated value is assessed by the judicial officer during the seizure of the movable property. It may also be the result of an appraisal prepared by a court appointed expert. It should be noted that for this form of sale a request from a party is required. The judicial officer cannot conduct such sale ex officio.

The movables unsold to the commercial undertaking are subject to a public auction, unless the creditor makes a request for a sale on commission.

Sale of seized movables requiring a licence - Article 866 [1] of the Code of Civil Proceedings

The judicial officer shall sell movable property that requires a licence sales (e.g., alcoholic beverages, weapons, ammunition, pharmaceuticals, medicines):

• through the company that has such a licence
• or to such a company.

The sale is conducted at wholesale prices, and when such prices are not documented, at prices 25% lower than the estimated value of the movable property. The estimated value is assessed by the judicial officer during the seizure of the movable property. It may also be the result of an appraisal prepared by a court appointed expert.

Movables requiring a licence cannot not be sold:

• through sale by private treaty
• through public auction.

The movable property requiring a licence , may be sold through sale on commission. The consignee must be licensed to conduct the sale of such movable property.

Sale of movable property of historical or artistic value - Article 866 [2] § 1 CCP, and objects made of gold and platinum (with the exception of everyday objects) - Article 866 [2] § 2 of the Code of Civil Proceedings.

Objects of historical or artistic value can be sold through a company engaged in such trade or to a state museum, library, archive or to a research and documentation center. They can also be sold by private treaty in accordance with Article 864 [1] of the Code of Civil Proceedings. If the sale by private treaty has been ineffective, the judicial officer may send the objects of historical or artistic value to be sold on commission (if the creditor submits such a request) or use the auction sale.
The judicial officer appoints an expert to estimate the seized objects of historic or artistic value.

This form of sale applies to:

• unused objects of historical or artistic value
• used objects of historical or artistic value.

Movables of historical or artistic value may also be sold through:

• sale by private treaty
• sale on commission
• public auction when the judicial officer failed to sell them through the trading company engaged in trade of such movables or to a public museum, library, archive or center of research and documentation.

The judicial officer shall sell objects made of gold or platinum, with the exception of everyday objects, and objects made of gold or platinum of no utilitarian value to:

• a jeweler company
• or to another company trading in or processing precious metals.Sale of the above-mentioned movables is possible only with the above-mentioned entities; sale by private treaty or auction sale shall be ruled out.

As to the selling price, the applicable provision shall be Article 865 § 1 CCP, which indicates that the judicial officer may sell gold and platinum articles to an entrepreneur trading in such movables at wholesale prices, and when such prices are not documented, at prices 25% lower than the estimated value of the movable property. The judicial officer is bound by law to appoint an expert to estimate the value of objects made of gold and platinum.

Sale of seized foreign currency - Article 866 [2] § 3 of the Code of Civil Proceedings

Securities and other documents used as a legal tender, issued in foreign currencies constitute foreign currency. - Foreign Exchange Law Act of 27 July 2002. (Journal of Laws No. 141, item 1178). The judicial officer sells the seized foreign currency:

• to the bank, or
• to another entrepreneur who deals in purchasing such valuables - currency exchange is a regulated undertaking consisting in purchase and sale of currency brokering their purchase and sales. The sale requires entry in the register.The selling price may not be lower than the purchase rate of the foreign currency in zloty by the Polish National Bank on the day preceding the date of sale. Seized currency can be sold only to entities referred to in point 1 and point 2.

Sale on commission of seized movable property - Article 867 § 4 of the Code of Civil Proceedings)

The following movables can be subject to sale on commission:

• not specified in Article 865 § 1 CCP (i.e., unused movables that are subject to trade circulation and used movables that are and are not subject to trade circulation),
• unsold through the form of sale provided for in Article 865 § 1 CCP (i.e., unused movables that are subject to trade circulation unsold to a trading company).

Sale on commission is optional. It requires a request of the creditor. The request by the creditor may occur at any stage of enforcement against movable property. The price for which the movable property is to be sold shall be established as its estimated value. If the movable property is not sold at that price sold during one month, the commissioning agent may lower the selling price by 25%. From the resulting selling price the commission is deducted.

The provisions of the Code of Civil Proceedings do not indicate any criteria for the choice of a consignment store. The creditor shall have the right to select the consignment store.

The movable property requiring a licence can be sold through this form of sale. The consignee must in such case be licensed to conduct sales.

Auction sale of seized movable property

It is the most common way of selling movable property. Sale through public auction shall apply to:

• movables unsold through sale by private treaty
• unused movables that are not subject to trade
• used movables that are and are not subject to trade
• unused movables that are subject to trade and have not been sold to an entrepreneur conducting trade of such movables
• movables which are admitted to be sold on commission in accordance with provisions of law but the creditor has not submitted a request for such sale
• movables which are admitted to be sold on commission in accordance with provisions of law but have not been sold through such sale
• objects of historical or artistic value that have not been sold through a company engaged in trade of such objects or to a state museum, library, archive, or a research and documentation center.
• objects of historical or artistic value that have not been sold on commission .

Auction sale does not require a request by the creditor. The judicial officer ex officio shall establish whether the movable property is eligible for sale through auction.

General principles of the public auction

Principles and procedures for conducting a public auction shall be governed by the Regulation of the Minister of Justice on Actions of Judicial Officers of 9 March 1968 (§ 80 - § 105 of the Regulation) and the provisions of the Code of Civil Proceedings.

Place of the auction

1. The auction shall take place as far as possible outside the place where the movables are located.

2. The judicial officer cannot designate that the auction is to take place away from the location where the movable property is located, if the creditor is opposed to it.

3. The auction of items that have not been sold by the consignment shop may be designated at that shop, after prior agreement with the shop manager.

Transporting goods to the auction

If the auction is to take place outside the place where the movable property is located, the judicial officer shall order the movables to be transported there.

Date of the auction

The date of the auction should be appointed as soon as possible, however, there should be at least a week between the announcement and the date of auction. This period may be shortened if circumstances specified in Article 864 § 2 obtain (movable property prone to spoilage or livestock, where the debtor has refused to hold it under his/her supervision).

Notice of the auction

1. The judicial officer shall make an announcement that includes the following:

• place and time of the auction,
• movables to be sold, specifying the type and amount of assessment of individual movables,
• time and place where the movables can be viewed.

2. If the auction is for a considerable amount of movable property, the notice should generally specify its type and total amount of assessed value, and in addition indicate the type and amount of assessment for more valuable items.

Posting notice of the auction, service of the notice

The announcement is carried out at the time a copy of the notice has been served upon the parties and the caretaker of the seized movable property, and by posting the notice inside the building of the district court of proper jurisdiction for the location of sale. The notice shall remain posted until the auction date.

The judicial officer shall notify the debtor of the time and place of the auction no later than three days before the auction.

The notice shall be served on the debtor prior to the commencement of the auction in case of the following:

• movables prone to spoilage or if supervision over them or their holding would involve excessive costs, or
• when the seized property is livestock, and the debtor has refused to hold it under supervision.

Dissemination of information about the auction

In order to disseminate information about the auction, the judicial officer shall order that the announcement be made in the manner commonly accepted in that location.

Publication about the auction in the press

If the value of the movable property covered by a single notice of the auction has been established as more than the amount of fifteen thousand zloty, the judicial officer may also place a one-time notice to be published in a newspaper of wide circulation in that location or notify the public through other mass media.

Exclusion from participation in the auction

The following may not participate in the auction:

• the debtor
• the judicial officer
• spouses of the debtor or the judicial officer
• children of the judicial officer
• personnel of the consignment store where the auction takes place
• and persons present at the auction in an official capacity.

Date of the auction

The auction should start at the time designated in the notice, but no later than two hours after that time.

The auction procedure

Prior to the auction, the judicial officer shall announce to the participants that the buyer of the auctioned item should be the bidder who offers the highest price. The judicial officer shall also provide instructions on payment of the purchase price and tax on the acquisition of property rights, as well as on the contents of Article 872 CCP (the principles of payment of the purchase price and the consequences of failure to pay).

Display of goods subject to the auction

The judicial officer should provide the participants the opportunity to see the movables put up for auction.

The starting price at the first and second auction

The auction starts with naming of the starting price specified in the Article 867 § 2 of the Code of Civil Proceedings. The starting price on the first date of the public auction shall be three quarters of the estimated value. If the auction does not take place on the first date, the seized movables may be sold at the auction on the second date. The starting price on the second auction date shall be half of the estimated value. That price is the lowest price at which the movable property can be disposed of at an auction.

Bidders

One bidder is sufficient for the auction to take place.

The principle of oral bidding

The bidding is conducted orally.

Bidding sequence of seized movable property

The judicial officer shall put up for bid subsequent articles of movable property or groups of movables of the same kind, each time listing both the estimated value and the starting price. The debtor may require that the movables be put up for bid in the order indicated by him/her.

Call for bids

A call for bids is made by the judicial officer by calling out three times the latest price increment accompanied by the question: "who will bid more". No further bids are stated by the judicial officer by announcing: "No one".

Higher bid

The bid price offered shall cease to apply from the moment when another participant offers a higher bid.

Failure of coming into effect of the auction

If, after the starting bid, no one has offered a bid equal to at least the starting price, the judicial officer shall enter in the protocol that the auction has not come into effect.

Discontinuation of the auction

If the amount obtained from the sale of a portion of the movable property seized is sufficient to satisfy enforced claims and the enforcement costs, the judicial officer shall interrupt the auction and release the remaining movable property from seizure.

Payment execution from the buyer

If the buyer of movable property at a public auction does not remit payment for the purchase price, the judicial officer shall file for the court to issue an enforcement decision against the delinquent buyer pursuant to Article 872 § 3 of the Code of Civil Proceedings.

Taking possession of movable property; notice of receipt

While transferring movable property to the buyer, the judicial officer shall collect from him/her a notice of receipt to file with the documentation of the auction.

Return of goods to the debtor

If seized movable property has not been sold and the creditor has not taken possession of it, the judicial officer shall return them to the debtor. For that purpose the judicial officer shall request the debtor to take possession of the seized movable property within 14 days, subject to penalties as specified in the provisions for liquidation of unclaimed deposits and uncollected goods.

Winning bid, complaints against the winning bid

The judicial officer shall announce the winning bid of the bidder offering the highest price, if after the third call for a higher bid, no further bids have been offered.

The announcement of the highest bid concludes the sale of the movable property for the benefit of the buyer. From that moment the buyer shall acquire the usufruct to the movable property.

The judicial officer shall record the highest bid in the auction protocol by entering the first and last name, and place of residence of the buyer.

The creditor or the debtor may lay a complaint against the highest bid in case of the non-compliance with the legislation:

• on the public character of the auction
• on the lowest purchase price
• on the exclusion from participation in the bidding.

The complaint shall be entered into the auction protocol. There shall be no objection raised to the highest bid for movable property prone to rapid spoilage. The court decision shall be subject to a complaint. If within two weeks, the complaint is not resolved, the buyer may within the following week disclaim the acquisition of the movable property and be reimbursed for the amount paid. When the buyer avails of that right, or if the court does not validate the highest bid, the auction shall be deemed canceled. Following the entering of the highest bid and remittance of the whole amount of the price, the bidder shall become the owner of the movable property purchased. If the Court refuses to validate the highest bid, the price remitted is subject to refund.

Remittance of purchase price

The buyer is responsible for payment of the purchase price immediately after his/her highest bid has been granted. If however the price exceeds five hundred zloty, the responsibility of the buyer shall be limited to making an immediate deposit of one-fifth of the price, however no less than five hundred zloty, while the balance should be remitted by noon of the following day. The buyer, who within the prescribed period has not paid the price in whole or in part, shall forfeit rights arising from being the highest bidder. If the buyer has not remitted in a timely manner the amount payable immediately on being recognized as the highest bidder, the judicial officer shall resume the bidding of the same movable property with the starting bid, and the delinquent buyer may not continue to participate in the auction. In the event the payment of balance due on the day following the auction is not remitted in a timely manner, a next auction shall be announced on the same conditions as the first. From the buyer who has not complied with the obligation to pay the price, or its part, within the period stipulated, the judicial officer shall execute the amount corresponding to one-tenth of the total purchase price, against which the amount already remitted by the buyer shall be recognized. The amount executed from the buyer shall be used to cover the auction costs. The surplus shall be paid to the court cashier for the benefit of the state treasury. The enforcement action against the buyer is decided by the court. The court decision shall be subject to complaint.

Second auction of movable property, taking ownership of unsold movable property

If the first auction has been canceled, the creditor may, within two weeks from the receipt of the judicial officer's notification, request that:

• a second auction is scheduled, or
• take ownership of the movable property offered for sale, or some of it, at a price no lower than the starting bid.

If the execution is conducted by several creditors, the priority in taking ownership of the movable property goes to the one among them who has offered the highest price, and with the tie, to the one at whose request the movable property has been seized earliest. The declaration of taking ownership shall be acknowledged only if the creditor remits the entire price amount along with the request. The ownership of the movable property shall be transferred to the creditor upon notifying him/her about granting him the goods seized.

If some from among the creditors request an auction while the others want to take ownership of the movable property, a second auction shall be scheduled.

If the second auction has been canceled, within two weeks from receiving the notification from the judicial officer, the creditor should also be entitled to take ownership of the movable property for a price no lesser than the starting bid.

Inclusion of the claim in the purchase price

If the buyer is the only creditor with an execution title, or if the purchase price is sufficient to satisfy all creditors with execution titles and the execution costs, the buyer may include its executable claim in the purchase price.

Discontinuance of proceedings against unsold movable property

The judicial officer shall discontinue proceedings against the unsold movable property:

following the first auction - in the event of failure by the creditor to file, within two weeks

• from the receipt of the notification by the judicial officer, a request to schedule a second auction or a declaration about taking ownership of the movable property
• following the second auction - in the event of failure by the creditor to file, within two weeks from the receipt of the notification by the judicial officer, a declaration about taking ownership of the movable property.

If the creditor has not availed of the right to take ownership of the movable property, the judicial officer shall discontinue proceedings against goods not sold or not taken ownership of.

14. Taking possession of movable property by the buyer

If the debtor or the caretaker refuses to hand over the goods to the buyer, the judicial officer at the request of the buyer shall follow the course of enforcement as with non-monetary claims. The judicial officer shall take the goods from the debtor and deliver them to the buyer in accordance with the wording of Article 1041 of the Code of Civil Proceedings. Such action shall require a request by the buyer. The handing over of the goods shall be carried out as part of the proceedings against the movable property. An execution title is not required.

15. Results of movable property acquisition

Anyone purchasing goods pursuant to the provisions of Article 844-849 CCP shall become their owner without any encumbrances and should take possession of such goods immediately.

The acquisition is primary in character. The previous owner shall lose his/her ownership rights.

The buyer shall acquire the right of ownership without any encumbrances.

Purchaser shall not be entitled to claims for defects.

No objection can be raised against the buyer as to the validity of the acquisition.