Filenews 5 July 2023 - by Eleftheria Paizanou
The bill for the so-called Foreclosure Court, to which borrowers will be able to appeal in cases of a financial nature, including foreclosures, reveals today "F".
The bill is expected to be finally approved today by the Council of Ministers and provides, among other things, that the Supreme Court, in cases it deems necessary, has the ability to issue instructions for the president of a District Court to appoint a specific number of judges who will hear such cases.
The bill adds a new article to the Basic Law, which determines which cases will be heard.
In particular, the court will hear disputes between a borrower, guarantor, collateral provider with a creditor, concerning the debit balance of the credit facility that is past due or exceeded and which has been terminated.
At the same time, the judges appointed will hear any other dispute between the above persons arising out of or in relation to the credit facility, guarantees and collateral.
At the same time, they will consider disputes regarding the sale of mortgaged property, which is a credit facility security, under the Transfer and Mortgage Act, i.e. the law on foreclosures.
The bill also included transitional provisions, in relation to disputes that will be examined by the competent court.
Among other things, it is provided that cases pending before the District Court on the date of commencement of this law, which fall within the disputes to be heard by the court, are forwarded for the continuation of the court proceedings and the issuance of a decision before the judges to be appointed, provided that the hearing of the case has not begun, otherwise they continue and conclude in the court before which they are pending.
According to the text of the bill, the President of the District Court has the power, with the approval of the Supreme Court, to replace a judge if necessary due to a justified absence and other reasoned impediment.
The bill does not include a provision for the time during which these cases will be heard, as this would be considered an unconstitutional interference with the judiciary.
At the same time, the sale will not be suspended for as long as the trial lasts, as this is considered by the Government to cause negative effects on the economy and the banking system.
This bill alone does not provide full protection to borrowers, which is why it will be combined with the package of measures that the Government will propose to Parliament.
