Section III. Execution Against Claims and Other Property Rights
402. (Meaning of execution against claims and execution court)
1. An “execution against a claim” refers to execution against a claim having the
object of payment of money or delivery of movables.
2. The debtor of the claim to be attached is called the “third party debtor”.
3. The court of first instance having jurisdiction over the district of the debtor
prescribed in Article 8 (Jurisdiction conferred by address, etc.), or if there is no
such district, the court of first instance having jurisdiction over the district of the
third party debtor prescribed in Article 8 (Jurisdiction conferred by address, etc.),
shall be the execution court having jurisdiction over execution against a claim.
4. If a further attachment ruling is issued in respect of an attached claim, the
execution court can transfer the case to another execution court if a different
execution court has issued the attachment ruling.
403. (The attachment ruling)
1. A motion for execution against a claim shall be filed at the execution court.
2. Except in cases noted in Article 349 (Form of motions for execution), the motion
for execution against a claim shall indicate the name of the third party debtor.
3. Where the motion is for execution against only a portion of a claim, the creditor in
execution shall clearly specify the scope of execution in the motion for execution
of claim.
4. Execution against a claim commences by way of an attachment ruling by the
execution court.
5. In the attachment ruling, the execution court shall enjoin the debtor in execution
from collecting or otherwise dealing with the claim, and shall enjoin the third
party debtor from paying the debtor in execution.
6. The attachment ruling shall be issued without examination of the debtor in
execution and the third party debtor.
7. The attachment ruling shall be served on the debtor in execution and the third
party debtor.
8. Attachment shall come into effect upon service of the attachment ruling on the
third party debtor.
9. Once the ruling of execution is served on the debtor and the third party debtor, the
bailiff shall notify the creditor in execution of that fact and of the date of service.
10. Once a ruling of execution against a claim secured by a registered hypothec or
other security comes into effect, the court clerk shall order the registrar to note in
the register the fact that the claim has been attached.
11. A Chomtoah appeal may be filed against an adjudication concerning a motion for
execution against movables.
404. (The scope of attachment)
1. The execution court can issue an attachment ruling in respect of the whole of the
claim to be attached.
2. If the value of the attached claim(s) exceeds the total of the creditor in execution’s
claim and the execution costs, the execution court shall not attach any other claim.
3. If a portion of a claim has been attached or if provisional execution has been made
against a portion of a claim, and if an attachment ruling has been issues which
exceeds the remaining portion of the claim, the effect of each attachment or
provisional attachment shall extend to the whole of the claim. The same shall
apply if the whole of a claim has been attached or subjected to provisional
attachment and then other attachment orders are issued in respect of a portion of
such claim.
405. (Notice to third party debtor to give statement)
1. Upon motion by the creditor in execution, at the time of service of the ruling for
execution, the execution court shall notify the third party debtor to state within
two weeks of the date of service the following matters:
(a) whether the attached claim exists or not, and if so, the type, amount and
details thereof;
(b) whether the third party debtor intends to make payment, the scope of
payment or the reasons for not paying, as the case may be;
(c) if there is any person having rights with priority over those of the creditor in
execution in respect of the claim in question, a description of such person
and of the type and scope of such priority rights; and/or
(d) whether there has been any attachment or provisional attachment execution
by other creditors.
2. If the third party debtor intentionally or negligently fails to make a statement or
makes a false statement, he will liable to compensate any loss incurred thereby.
406. (Delivery of claim certificate)
1. If a certificate exists for the attached claim, the debtor in execution shall deliver up
such certificate to the creditor in execution.
2. The creditor in execution can have the certificate referred to in paragraph 1
delivered by using the method of execution for delivery of movables as prescribed
in Article 525 (Execution of delivery of movables), based on an attachment ruling.
407. (Attachment of continuing payments)
The effect of attachment of salaries and other claims for continuing payments shall
extend to payments to be received after the attachment, up to a limit being the total of
the claim and execution costs.
408. (Notice of withdrawal of motion, etc.)
1. If a motion for execution against a claim has been withdrawn, the court clerk shall
give notice to this effect to all third party debtors who have been served with
rulings of attachment.
2. If a ruling for cancellation of execution proceedings has been made, the court
clerk shall give notice to all third party debtors who have been served with rulings
of attachment.
409. (Demand for distribution)
1. Any creditor holding an authenticated copy of enforceable title of execution or
who has submitted documentary proof of holding a lien can submit a demand for
distribution.
2. Upon the submission of a demand for distribution described in Paragraph 1, the
execution court shall serve written notice thereof on the third party debtors.
3. A Chomtoah appeal can be made against a ruling that dismisses a demand for
distribution.
410. (Collection of claims having the objective of payment of money)
1. Once a creditor has attached a claim having the objective of payment of money,
such creditor can collect said claim after a week has passed from the day on which
the ruling of attachment is served on the debtor in execution; provided that
payment in excess of the total of the creditor in execution's claim and the
Execution costs cannot be collected.
2. Where the creditor in execution has received payment from a third party debtor,
the claim and Execution costs in question shall be deemed to have been paid to the
extent of such payment received.
3. Where the creditor in execution receives payment under Paragraph 2, it shall
report this fact immediately to the execution court.
4. The creditor in execution shall have a duty to compensate the debtor in execution
for any loss arising from the failure of the creditor in execution to exercise the
attached rights.
411. (Deposit by third party debtor)
1. A third party debtor shall be entitled to deposit with the execution court the
attached amount, or the whole amount of the claim, when a claim having the
objective of monetary payment is attached.
2. In the cases described below, the third party debtor must deposit the amounts
prescribed below with the execution court:
(a) If a ruling of attachment or provisional attachment has
been issued in excess of the portion of the claim that has
not been attached, and if this ruling has been served by
the time that the third party debtor receives the written
complaint of a suite set forth in Article 412 (Collection
Suits) Par. 1 ; or
The whole amount of the
claim
(b) If the third party debtor has been served with a written
notice that a demand for distribution has been made
The portion of the claim that
has been attached
3. If a third party debtor has made a deposit described in Paragraphs 1 or 2, the third
party debtor must give notice of the circumstances to the execution court.
412. (Collection Suits)
1. If a creditor in execution has filed a suit against a third party debtor demanding
payment under a claim that has been attached, upon motion by the third party
debtor, the court that has accepted such suit may, by ruling, order any other
creditors that have attached the aforesaid claim by the time of service of the
complaint [in the collection suit first mentioned] to participate in said suit as joint
plaintiffs.
2. The effect of judgment in a suit described in Paragraph 1 shall extend to creditors
in execution who have been ordered to participate in a collection suit under that
Paragraph, even where they have not actually so participated.
3. In the case of suit under Paragraph 1 against a third party debtor who is subject to
a deposit obligation under Paragraph 2 of Article 411 (Deposit by third party
debtor), if the plaintiff's claim is admitted, the court hearing the collection suit
shall include an order in the binding and main text of its judgment that payment of
the amount of such claim shall be by way of deposit.
413. (Ruling ordering sale)
1. If the attached claim is subject to a condition precedent or a time stipulation, is
linked to counter-performance or for other reason is difficult to collect, the
execution court, upon motion by the creditor in execution, can issue a ruling
ordering the bailiff to sell the claim in the manner prescribed by the court and to
submit the proceeds of sale to the court.
2. In making a ruling under Paragraph 1, the execution court shall examine the
debtor in execution, except where the debtor in execution is overseas or his/her/its
address is unknown.
3. The execution court shall not issue an order described in Paragraph 1 if there is no
prospect of a surplus after applying the proceeds of sale to satisfaction of any
claim having priority over the claim(s) of the creditor(s) in execution and the
Procedural Costs.
4. A Chomtoah appeal may be filed against a ruling on a motion under Paragraph 1.
5. A ruling on a motion under Paragraph 1 shall have no effect unless it becomes
final and binding.
6. If it deems fit, when issuing a ruling under Paragraph 1, the execution court may
select a valuer and order a valuation of the claim.
7. The bailiff shall not sell the claim unless it of sufficient value to leave a surplus
after satisfying any claims having priority over the claim(s) of the creditor(s) in
execution and the Procedural Costs.
8. The debtor in execution is not permitted to make an offer to buy in any sale under
Paragraph 1.
9. At the time of sale of a claim, in lieu of the debtor in execution, the bailiff shall
deliver an officially dated notice of assignment to the third party debtor.
10. When sale has been completed under Paragraph 1 of this Article of a claim
described in Paragraph 10 of Article 403 (The attachment ruling), the court shall,
on motion by the purchaser who acquired the claim, direct the registrar for the
benefit of the purchaser to register the transfer of any hypothec or other security
right, and to strike out any registration [of the fact of attachment] that has been
carried out under Paragraph 10 of Article 403 (The attachment ruling).
414. (Execution of ruling of attachment of right to demand delivery of movables)
1. After the passage of one week after the service of the motion for attachment on the
debtor in execution, a creditor in execution who has attached a right to demand
delivery of movables can demand that the third party debtor deliver up such
movables to the bailiff who has received the motion from the creditor in execution.
2. The bailiff to whom the movables are delivered shall sell them in accordance with
the procedures for sale of movables and pay the sales proceeds into the execution
court.
415. (Scope of creditors eligible for distribution)
Creditors eligible for distribution shall be those who have carried out attachment or
provisional attachment or made a demand for distribution not later than the times set
forth below:
(a) the time at which a third party debtor has made payment into court (deposit)
under Paragraph 1 or 2 of Article 411 (Deposit by third party debtor);
(b) the time at which the complaint in a collection suit has been served on the
third party debtor;
(c) the time at which the proceeds of sale pursuant to a ruling ordering sale are
delivered to the bailiff; and/or
(d) the time at which movables are delivered up to the bailiff in a case of
attachment of a right to demand delivery of movables.
416. (Execution against other property)
Except where specifically provided otherwise, execution against property other than
immovables, vessels, movables and claims shall follow the example of execution
against claims.
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