In this e-note:

• Execution against compensation for work
• Execution against a bank account
• Execution against other claims
• Execution against other property rights

Execution against compensation for work

Execution against compensation for work is regulated by the provisions of Articles 880 and 888 of the Polish Code of Civil Proceedings.

1. Jurisdiction of the enforcement authority

A judicial officer attached to a district court of general jurisdiction for the debtor is competent to conduct execution against compensation for work. Pursuant to Article 8 §6 of the Law on Judicial Officers and Enforcement , the creditor has the right to choose a judicial officer in the territory of the Republic of Poland to conduct execution against compensation for work.

2. Attachment of earnings

The judicial officer conducts execution against compensation for work by attachment thereof.

The judicial officer notifies the debtor that the debtor must not collect his earnings, apart from the part free of attachment, or dispose of it in any other manner, to the amount of the performance being executed and until the full amount of the debt is covered. It applies but is not limited to periodic compensation for work and remuneration for commissioned work, as well as to awards and bonuses to which the debtor is entitled for the period of his or her employment, and to the profit or share in the company's fund related to the employment relationship, and in any other funds which are related to the employment relationship.

The judicial officer orders the employer not to pay any compensation, with the exception of the part free of attachment and within the above extent, to the debtor, but to:

• 1) Transfer the attached earnings directly to the executing creditor and advise the judicial officer of the first payment, or
• 2) Transfer the attached earnings to the judicial officer where the remuneration is or will be, in the course of the execution proceedings, subject to another execution, or the executed part of the compensation is not sufficient to cover all performances due being executed.

At the same time, the judicial officer instructs the employer in the consequences of a failure to comply with the order.

Depending on circumstances, the judicial officer may order the employer to transfer the remuneration directly to the judicial officer.

By attaching the earnings, the judicial officer also orders the employer to, within a week:

• 1) Present a statement of the debtor's periodic compensation for work for three months preceding the attachment, for each month separately, and a separate statement of the debtor's any other income;
• 2) Provide the amounts and dates of transferring the attached earnings to the creditor;
• 3) In the event of any other impediments to pay compensation for work, to make a declaration on the type of such impediments, and in particular to provide information whether other parties have any claims, whether any action is pending before any court, and whether other creditors pursue execution against the attached earnings and for what claims.

The employer is obliged to immediately notify the judicial officer and the creditor of any change in the above circumstances.

3. The moment of attachment

Attachment is effected upon service of the order to the debtor of the attached claim.

4. Principle of continuity of attachment

Attachment remains in effect, even if after the attachment, a new employment or mandatory relationship is concluded, or even if the workplace is transferred to another person, if the person knew about the attachment.

If the employment relationship with the debtor is terminated and the former employer mentions the attachment of earnings in the employment certificate issued to the debtor, and if the new employer of the debtor is known to the former employer, the former employer sends to the new employer the judicial officer's notice and documents related to the attachment of earnings, and notifies the judicial officer and the debtor against whom the enforcement procedure is pending thereof. The note in the employment certificate should include the code of the judicial officer who attached the amount due and the execution case number, as well as indicate the amounts that has been already deducted. Sending the notice to the judicial officer results in attachment of the debtor's debt in the new workplace upon the receipt of the notice by the new employer. The new employer who will be presented with the employment certificate with a note on attachment of claims shall notify the employer who issued the certificate and the judicial officer indicated in the note that the employee has been hired. If the new employer who was not presented with the employment certificate by the employee becomes aware of the place where the employee was previously employed, the new employer is obliged to notify the previous employer of hiring the employee, unless the employee presents a certificate from that workplace stating that the employee's debts were not attached.

The debtor shall also have the obligation to notify the judicial officer of any change of the employer. When the debtor is notified of attachment of earnings, the debtor should be instructed in this obligation and effects of a failure to meet it.

5. Effects of attachment of earnings

Attachment has such an effect that, in relation to the executing creditor, all dispositions of the earnings which exceed the part free of attachment, carried out after their attachment and also before their attachment are invalid, if the earnings are due after the attachment.

6. Fine

The judicial officer may impose a fine on an employer, who did not make the declaration required by law or failed to send a notice or documents on attachment of earnings to the new employer of the debtor within the prescribed time limit, in the amount of up to five hundred Polish zlotys. The fine may be repeated if the employer evades performing these actions in an additional time limit set.

If the employer is not an individual, the fine is imposed on the employee or the shareholder who is responsible for making the declaration and sending the notice or documents on attachment to the new employer, and if such employee is not assigned or it is not possible to identify them - on persons who are authorized to represent the employer. If the employer is a civil law partnership, the fine is imposed on any of the partners.

The employer that failed to notify the judicial officer or otherwise breached the obligations under the attachment, or failed to make the declaration or made a false declaration, or paid the attached part of earnings to the debtor, shall be liable for damage incurred by the creditor thereby.

The fine shall also be imposed on the debtor if he or she did not notify the judicial officer of a change of the employer.

7. Deduction from compensation for work

Upon deduction of social insurance contributions and personal income tax advances, only the following amounts due shall be deducted from compensation for work:

• 1) Amounts executed under writs of execution to cover maintenance obligations,
• 2) Amounts executed under writs of execution to cover amounts due other than maintenance obligations,
• 3) Cash advances paid to the employee,
• 4) Cash penalties for the employee's failure to comply with occupational health and safety regulations and fire regulations, for leaving work without giving reasons, and coming to work under the influence of alcohol or for alcohol consumption during work.

Deductions are made in the order given in Clauses 1 - 4.

The deductions may be made within the following limits:

• 1) In the case of execution of maintenance obligations - up to three-fifths of remuneration,
• 2) In the case of execution of other amounts due or deduction of cash advances - up to a half of remuneration.

An award from the company award fund, additional annual compensation and any amounts to which employees are entitled under their share in profit or balance-sheet surplus are subject to execution for payment of maintenance obligations to the full amount thereof.

In a month in which the components of remuneration are paid for periods longer than 1 month, debts are deducted from the employee's remuneration from the total amount of remuneration, including these components of remuneration.

8. Amounts exempt from execution in the case of execution against compensation for work

This issue is regulated by the provisions of the Polish Labour Code (Articles 87 [1] and 88 of the Polish Labour Code).

The following amount of compensation for work is free from legal deductions:

• 1) The minimum salary, determined pursuant to separate provisions and to which full-time employees are entitled, after deduction of social insurance contributions and personal income tax advances, with deductions of amounts executed under writs of execution to cover debts other than maintenance obligations ,
• 2) 75% of the minimum salary - with deduction of cash advances granted to the employee,
• 3) 90% of the minimum salary - with deduction of cash penalties for the employee's failure to comply with occupational health and safety regulations and fire regulations, for leaving work without giving reasons, and coming to work under the influence of alcohol, or for alcohol consumption during work.

If the employee is employed on a part-time basis, the above amounts shall be decreased in proportion to the employee's FTE.

9. Deductions for payment of maintenance obligations without enforcement proceedings

In compliance with the rules laid down in the Polish Labour Code, an employer also shall make deductions for maintenance obligations without any execution proceedings, except for when:

• 1) Maintenance obligations may be deducted for a few creditors and their total deductible amount is not sufficient to fully cover all maintenance obligations due,
• 2) The remuneration was attached under a judicial or administrative decision.

The above deductions are made by the employer upon a request of the creditor made under a writ of execution presented by the creditor.

10. Discontinuance of executory proceedings as regards performances which are due in the future

The debtor may request an execution of performances due in the future to be discontinued, if he pays all performances due and places the amount equivalent to the amount of periodic performances over a six-month period in the court deposit, authorizing the judicial officer to withdraw this amount. The judicial officer will use the authorization when he finds that the debtor has fallen into arrears of performances due; at the same time, the judicial officer starts execution ex officio.

Execution against a bank account

Execution against a bank account is regulated under Articles 889 - 893[4] of the Polish Code of Civil Proceedings.

1 Jurisdiction of the judicial officer

The judicial officer competent to conduct execution against a bank account is a judicial officer of general jurisdiction, i.e., competent for the place of residence or registered office of the debtor. Pursuant to Article 8 § 6 of the Law on Judicial Officers and Enforcement, the creditor has the right to choose a judicial officer in the territory of the Republic of Poland to conduct execution against a bank account.

2. Attachment of a bank account

In order to conduct execution of debts against a bank account, including a bank account with a savings deposit, the judicial officer:

• 1) Sends to a branch or other business unit of the bank, in which the debtor holds an account, a notification of the attachment of the debtor's monetary debt resulting from holding a bank account, including a back account with a savings deposit, up to the amount of debt, subject to the execution plus execution costs, and orders the bank not to make any payments from the account without the judicial officer's consent up to the amount of the executable claim, but to immediately transfer the amount attached to pay the debt, or to notify the judicial officer within seven days of any obstacle that prevents transfer of the attached amount; the notice is also effective when a bank account, including a bank account with a savings deposit is not provided;
• 2) Notifies the debtor of attachment of his debt from the bank account, including a bank account with a savings deposit, by serving the debtor a copy of the notice addressed to the bank on the prohibition to make payments from a bank account, including a bank account with a savings deposit.

At the same time, the judicial officer sends to the creditor a copy of the notice sent to the bank.

If a debt from a bank account, including a bank account with a savings deposit was attached under two or more execution proceedings, and the amount held in the account is not sufficient to satisfy all the creditors, the bank postpones payment of attached amounts notifying the judicial officers who conduct the enforcement thereof. The bank pays the attached debts after transferring all the matters pursuant to art. 773 [1] CCP, to the judicial officer who conducts further execution.

Attachment of debts against a bank account, including a bank account with a savings deposit, of the debtor, takes place at the time of serving the bank with a notice on prohibition to make payments from the account and also includes amounts which were not held on a bank account, including a bank account with a savings deposit at the time of attachment thereof and were paid into the account after its attachment. The prohibition to make payments from a bank account under attachment of this bank account does not apply to current remuneration payments together with taxes and other statutory duties, and payments for adjudicated maintenance obligations, and maintenance annuities adjudicated as damages - to the amount of the average salary from the previous quarter published by the President of the Central Statistical Office in the Official Journal of the Republic of Poland "Monitor Polski". Payment of remuneration takes place upon submitting with the judicial officer a copy of the payroll or other authoritative proof, and in the case of payment for maintenance obligations, and maintenance annuities - a writ of execution stating the debtor's obligation to pay maintenance, or an annuity.

The Bank makes the above payments under permission by the judicial officer. Payments for maintenance obligations and maintenance annuities are made to the person entitled to these performances.

3. Attachment of a joint account

Under a writ of execution issued against the debtor, debts may be attached from a joint account maintained for the debtor and third parties. Further execution activities will be carried out against the debtor's share in the joint account pursuant to the agreement that regulates maintenance of the account and which the debtor has the obligation to submit to the judicial officer within a week as of the attachment. The provisions on disclosure of assets are applied accordingly. If the agreement does not set forth the share in the joint account, or when the debtor does not submit the agreement, it is presumed that the shares are equal. After the share of the debtor is determined, the other shares are exempt from execution.

If a joint account for partners of a civil law partnership is attached, the judicial officer notifies the other partners thereof.

4. Joint account of spouses

Under a writ of execution issued against a debtor who is married, execution may be carried out against the joint account of the debtor and the debtor's spouse.

The above situation does not exclude the possibility of defending the debtor's spouse under an action for exemption from execution, if funds which do not come from the debtor's personal assets, or funds which do not come from the debtor's compensation for work, income obtained by the debtor from other profit-making activity, or from gains under copyrights and related rights, industrial property rights and other author's rights are accumulated in the joint account of spouses.

5. Liability for damage

A bank which violated the provisions concerning the bank's obligations related to execution against bank accounts, including bank accounts with a savings deposit, is held liable for any damage suffered by the creditor therefrom. The provisions on imposing a penalty are applied accordingly to the bank's employees who are guilty of making an illegal payment from an attached bank account, including a bank account with a savings deposit.

6. Funds in an account which are exempt from execution

The issue of protection of funds in a bank account is regulated under the Banking Law of 29 August 1997.

Article 54 of the Banking Law states that any funds which are in:

• 1) Savings accounts,
• 2) Current and savings accounts
• 3) And in fixed term deposit accounts of one person, regardless of the number of agreements concluded, are exempt from execution under a judicial or administrative writ of execution to the amount of three times the average salary in the private sector, without payment of awards from profits, published by the President of the Central Statistical Office for the period directly preceding the date of the writ of execution.

Funds accumulated in a savings account, current and savings account and a fixed term deposit account maintained for a few individuals are exempt from attachment to the above amount, regardless of the number of co-owners of such an account.

Execution against other claims

Execution against other claims is regulated under Articles 895 - 908 of the Polish Code of Civil Proceedings.

1. Jurisdiction of the judicial officer

A judicial officer of the court of general jurisdiction for the debtor against whom the execution proceedings are being conducted is competent to carry out execution against other claims, and if there are no grounds for its designation - a judicial officer of the court of general jurisdiction for the person who bears an obligation to the debtor. If no such person exists, a judicial officer of the court in whose region the object of a performance or right is located is competent to carry out execution. If the exercise of a right is connected with possession of a document, a judicial officer of the court in whose region the document is located is competent to carry out execution. Pursuant to Article 8 § 6 of the Law of Judicial Officers and Enforcement, the creditor has the right to choose a judicial officer in the territory of the Republic of Poland to conduct execution against other claims. On the basis of an application for initiating execution against real estate, the judicial officer will also attach claims or other property rights related to possession of a document, if the document is in the possession of the debtor.

2. Attachment

• A judicial officer carries out execution against a claim by attachment thereof. In order to attach a claim, the judicial officer: 1) Notifies the debtor that he or she must not accept any declaration, or dispose of the attached claim, and the security established on it;
• 2) Orders the debtor of the claim not to pay the performance due from it to the debtor but to place it with the judicial officer, or into the court deposit.

Simultaneously with attachment of the claim, the judicial officer shall order the debtor to make, within a week, a declaration on:

• 1) Whether and to what amount the debtor is entitled to the attached claim, or whether the debtor refuses to pay and for what reason;
• 2) Whether other persons have any claims to the claim, and whether and before which court or body an action for the attached claim is or was pending, and whether and for which claim execution was carried out by other creditors against the attached claim.

3. Moment of attachment

Attachment is effected upon service of the order to the debtor of the attached claim. If an entry in the land and mortgage register is necessary, the claim is attached at the moment of making an entry or submission of the judicial officer's application to the files. However, also in this case, attachment is effective at the moment of serving the order to the debtor of the attached claim, if the service took place earlier.

Attachment of amounts which are paid periodically shall also include future payments.

4. Attachment of a claim which preservation is disclosed by making an entry in the land and mortgage register or by submitting a document to the records

In order to attach a claim which preservation is disclosed by an entry in the land and mortgage register or by submitting a document to the file, the judicial officer, simultaneously with the notification and the order to the execution debtor and the debtor of the attached claim, sends to the court competent to keep the land and mortgage register an application for making an entry therein or submitting the application to the files.

If the land and mortgage register contains any entries, or the records contain any documents that prevent the application from being accepted, the court competent to keep the land and mortgage register shall notify the creditor and the judicial officer thereof and shall set them a time limit to remove the obstacle. The creditor is responsible for removing the obstacle. In order to do so, the creditor may exercise the rights of the debtor. Upon the creditor's request, the judicial officer will collect the necessary documents from the debtor.

After an ineffective expiration of the set time limit, the court will dismiss the application of the judicial officer, and the judicial officer will discontinue the execution. However, if the creditor will, within the time limit set by the court, take action in order to remove the obstacle, the application may not be dismissed and the execution may not be discontinued before the final dismissal of the action.

If an entry in the land and mortgage register is required to preserve the attached claim, the judicial officer will collect from the debtor the documents necessary to make the entry and will submit an application for an entry for the debtor, as well as a simultaneous entry of the attachment.

5. Attachment of a claim preserved with a guarantee, a pledge or a registered pledge

When attaching a claim preserved with a guarantee, a pledge or a registered pledge, the judicial officer, upon the creditor's request, also notifies the guarantor or the owner of the object encumbered with the right of pledge, that the debtor must not pay the performance from the preserved claim.

6. Attachment of pecuniary claim related to a document

A claim related to possession of a document is attached by collecting the document from:

• 1) The debtor
• 2) Or a third party.

Without possession of a relevant document, attachment against a claim is not possible.

Shares, bonds, promissory notes, cheques and mortgage bonds are examples of such documents.

A claim related to possession of a document is attached by collecting the document from the debtor or a third party. Such a claim is further attached by making an entry in the report from the first attachment. The judicial officer will notify the creditor of the debtor against whom the execution proceedings are pending and the debtor of the attached claim of the attachment, and will also notify previous creditors thereof at further attachments. The judicial officer will request the debtor of the attached claim related to possession of a document to pay the amount sought, and if the claim is due upon termination, the debtor will carry out the termination. Upon a request of the creditor, the debtor or ex officio, the judicial officer will also perform preventive actions, if it is necessary. Pledged securities which are not entered into a security account may be sold by the judicial officer through an investment company. Sales under this procedure may take place within a month from the date of attachment. Upon the debtor's consent, the sale may also take place after this period. An expert shall be appointed to determine the selling price. Upon the debtor's request, the sale may take place at a price indicated by the debtor. If the obligor under a promissory note does not pay the amount sought, the judicial officer will sell the promissory note. The endorsement made by the judicial officer has effects of endorsement written by the obligor. If the promissory note bears the words "non-endorsable" or other equally reserved, the judicial officer may transfer the promissory note to the buyer only in the form and with the effect provided for in the provisions on transfer of claims.

7. Attachment of a claim whose object is performance under an alternative obligation with the right of choice reserved for the debtor

If a claim, whose object was a performance under an alternative obligation with the right of choice reserved for the debtor against whom the execution proceedings are being conducted, has been attached, the right shall be transferred to the creditor, if the debtor called by the judicial officer to make a choice, will not exercise this right within a week.

8. Attachment of a claim depending on a mutual performance of the debtor against whom the execution proceedings to release the object which is in the debtor's possession are being conducted

If the obligation of the debtor of the attached claim depends on a mutual performance of the debtor against whom the execution proceedings to release an object which is in their possession are being conducted, and the obligation to release the object was adjudicated with a valid judgment or stated in another writ of execution, the judicial officer will collect the writ of execution from the debtor of the attached claim, and upon obtaining an enforcement clause on it, will collect the object from the debtor against whom the execution proceedings are being conducted, if it is necessary in order to obtain the performance from the debtor of the attached claim.

9. Sale of other claims

There are 2 procedures for selling other claims:

• 1) At an auction
• 2) Sale by private treaty.

The above procedures are applied when the claim is difficult to recover. The nature of the claim must make it possible to sell it. The claim is sold upon the creditor's request.

Sale of other claim at an auction

A claim is sold at an auction conducted in accordance with the provisions on execution against real estate. The starting price amounts to a half of the amount made up of the claim being executed and the interest due calculated on it from its due date to the date of the auction. The purchase may not take place below the starting price.

Sale by private treaty of other claim

Grounds for sale by private treaty of other claim

• 1) Creditor's request
• 2) Indication by the debtor of a price for which the claim is to be sold
• 3) The debtor's consent to a sale by private treaty is not necessary when the claim was due before the date of attachment. In this case, the selling price may not be lower than 60% of the assessment together with interest calculated to the sale date.

10. Appointment of a trustee or administrator

If, after the attachment of a claim, the due performance of the debtor's or creditor's requires a trustee or administrator be appointed, the court will, upon the debtor's or the creditor's request, appoint a trustee or an administrator, or will order a right to be sold, accordingly. The court's decision may be appealed against. The provisions on administration under the procedure of execution against real estate and on the sale of real estate shall apply accordingly.

Execution against other property rights

Execution against other property rights is regulated under Articles 909 - 912 of the Polish Code of Civil Proceedings.

1. Jurisdiction of the judicial officer

The provisions on execution against claims are applied accordingly to execution against other property rights, unless separate provisions provide otherwise. Execution against other property rights is an independent manner of execution. A judicial officer of the court of general jurisdiction for the debtor against whom the execution proceedings are being conducted is competent to carry out execution against other property rights, and if there are no grounds for its designation - a judicial officer of the court of general jurisdiction for the person who bears an obligation to the debtor. If no such person exists, a judicial officer of the court in whose region the object of a performance or a right is located is competent to carry out the execution. If the execution of a right is connected with possession of a document, a judicial officer of the court in whose region the document is located is competent to carry out the execution. Pursuant to Article 8 §6 of the Law on Judicial Officers and Enforcement , the creditor has the right to choose a judicial officer in the territory of the Republic of Poland to conduct execution against other claims.

The objects of execution against other property rights are the following rights:

• Transferable rights
• Other than a claim.

Note that the provisions on execution against other property rights do not apply to property rights execution against which it is regulated by separate provisions. Execution against real estate, movable property and perpetual usufruct may serve as example here.

Execution against other property rights applies to sale of shares in a limited liability company, sale of rights incorporated in shares (issued by joint stock companies and limited joint-stock partnership), rights incorporated in obligations, mortgage bonds, copyrights, patent rights, right to protection of a utility design, a right under registration of a decorative pattern, right under registration of a trademark, a right under registration of an integrated circuit topography, a right to which the debtor is entitled under withdrawal from a civil law partnership or dissolution of a civil law partnership; a right under which the debtor may request distribution of assets.

2. Attachment of a right

A judicial officer will carry out execution against property rights by attachment of a right. In order to do it, the judicial officer will:

• 1) Notify the debtor that he or she must not dispose of, encumber or exercise the attached right, or receive any performance to which the debtor is entitled under the attached right;
• 2) Notify the person who has a responsibility to the debtor under the attached right that it may not perform this obligation to the debtor and should pay any performances arising from that right to the judicial officer or into the court's deposit account, and orders the person to submit within a week a statement whether any other persons have any claims to attach the right, whether and before which court or body an action for the attached right is or was pending, as well as whether and for which claim execution against the attached right is carried out.

The right becomes attached at the time of serving a notice to the person who has an obligation to the debtor under the attached right. However, if the notice on attachment has been served to the debtor earlier, the effects of attachment arise for the debtor at the time of delivery the notice of attachment to the debtor.

If the property right to be attached is such that there is no designated person who has obligation to the debtor, attachment is effected at the time of delivery of the notice to the debtor.

In relation to any person who knew about initiation of the execution, the effects of attachment arise at the time the person learned about the execution, even if the above notice has not been served yet.

3. Attachment of a patent right

When attaching a patent right, a right of protection for an industrial model, a right under registration of a decorative pattern, a right under registration of a trademark, a right under registration of an integrated circuit topography, the judicial officer sends to the Patent Office of the Republic of Poland an application for entering information on attachment into a relevant register.

4. Rights under an attached right

By virtue of attachment, the creditor may exercise any property rights of the debtor under the attached right which are necessary to satisfy the creditor by way of execution. The creditor may also undertake any actions which are necessary to retain the right.

If it is necessary to exercise rights under the attached right other than those listed above, the court will appoint an administrator upon the debtor's or the creditor's request, or ex officio. The provisions on administration in execution against real estate will apply to the administrator accordingly.

5. Scope of attachment

Attachment of a right also covers other debts and claims to which the debtor has the right under the attached right, even if they arose after the attachment.

6. Notification of attachment to the court register

When attaching a shareholder's share in a commercial company or partnership, or a shareholder's rights under a share in such a company which the shareholder may dispose of, as well as property rights of a shareholder, the judicial officer will notify the company of the attachment and will report the attachment to the register court. .

7. Assessment of an attached right

The judicial officer appoints an expert to assess the attached right. An expert's assessment is not necessary if the parties agreed on the value of the attached right, or if, within three months before attachment, the attached right was assessed for trading or its value was determined under a contract for trading. In this case, the value of the right is assumed to be the value of the right determined unanimously by the parties, or in any earlier agreement or assessment.

8. Description of an attached right

Upon the creditor's request, the judicial officer will draw up a description of the attached property right.

The description drawn up by the judicial officer will include but not be limited to:

• 1) Type of attached right;
• 2) Designation of authorized persons and the type of their rights, or statement on the lack of information of existence thereof;
• 3) Designation of obliged persons, if any, and type of their obligations;
• 4) If there is a dispute over the contents of the right or type of rights - the type of the dispute, persons who pursue these claims or designation of the court or other body before which the dispute is pending.

9. Satisfaction of the creditor

By fulfilment of a performance under an attached right

If a performance due arises from the attached right, the judicial officer will call upon the debtor of the attached claim to fulfil the performance for the creditor or the judicial officer.

From income

Satisfaction of the creditor under the attached right takes place from income, if the attached right generates income. Compensation for use of an attached patent may serve as an example here. Satisfaction from income takes place by ordering the debtor of the attached claim to transfer the income generated by the attached right. If it is not possible, satisfaction from income takes place by way of execution by a mandatory administrator.

From exercise of a right

The creditor may be satisfied from an attached right by way of exercising the right. The right is usually exercised by ordering the debtor of the attached claim to satisfy the claim under the attached right. If it is not possible, satisfaction takes place by way of execution by a mandatory administrator.

From sale of an attached right

At a public auction

A right is sold at an auction conducted in accordance with the provisions on execution against real estate.

Sale by private treaty

If special provisions do not state otherwise, the judicial officer may sell the attached right by way of a private sale at a price no lower than 75% of the estimated price. The sale may not take place earlier than on the fourteenth day from the assessment.

Upon the debtor's request and the creditor's consent, the sale may take place without the right being assessed. The sale may take place at the price indicated by the debtor if it has not infringed the interests of the creditors. The debtor should indicate the minimum price below which the sale may not take place. The debtor may designate the buyer or designate a few persons authorized to buy and the order in which they have the right to buy.

If the sale does not take place within a week from the date on which the creditor agreed to the sale, the judicial officer sells the attached right at an auction, unless the creditor agrees to a new private sale.

10. Execution against securities

1) The judicial officer will conduct execution against financial instruments entered into a securities account or other account by way of attachment. In order to do so, the judicial officer will:

• a) Notify the debtor that the debtor may not accept any monetary consideration from the attached financial instruments or assets accumulated in the account, or dispose of them, apart from orders referred to in Clause 2,;
• b) Order the brokerage business where the debtor has an account not to perform the debtor's orders, apart from orders referred to in Clause 2, or not to pay cash deposited in the debtor's account to the debtor, but to release the attached amounts to the judicial officer or deposit them in the court's deposit account to the amount of the executed claim.

2) If the amounts deposited in the debtor's account are not sufficient to cover the executed claim, the brokerage business where the debtor has his or her account will immediately order the debtor to place a sell order within three days in order to satisfy the creditor for a month, indicating which of the deposited financial instruments are to be subject to the sell order. If the attached financial instruments had already been attached based on an injunctive relief , the debtor's instruction concerning the order to sell them will be carried out after attachment in execution, if the sell order itself was placed by the debtor within 3 months.

3) If the debtor does not perform the action referred to in Clause 2, or despite the fact that the action has been performed, the sale of financial instruments did not take place, the entity that operates the account notifies the creditor within three days through the judicial officer of which financial instruments are deposited in the account. The creditor places an order for sale of selected financial instruments.

If the creditor does not place the order referred to in Clause 3 within two weeks, or if the sale ordered by the creditor did not take place within a year, the execution is discontinued.

If the attachment was carried out for two or more creditors, the order referred to in Clause 3 is placed by a judicial officer appointed under Article 908 of the Polish Code of Civil Proceedings, unless the creditors file a unanimous application for sale of the financial instruments. If a trustee is appointed, the two-week period starts as of the appointment date of the trustee.

11. Execution from a right to distribution of assets

If the attached right under which the debtor may request distribution of assets was attached, the attachment includes everything that is attributable to the debtor under the distribution. If the debtor receives real estate or a fraction thereof as result of the distribution, the court, after conducting the distribution, will notify the court competent to keep the land and mortgage register of the attachment in order to enter the attachment into the land and mortgage register or to submit the notification to the records. If the creditor did not request execution against the property attributable to the debtor within a month from the completion of the distribution, the assets against which the creditor did not request execution will be free of attachment. The judicial officer will notify the persons indicated by the creditor and against whom the debtor has the right to request distribution of the attachment of the right under which the debtor may request distribution.