Property Mortgaged or Pledged with Banks Proclamation (No. 97/1998).

This Proclamation amends the Civil Code concerning the sale of property mortgaged or pledged with banks in order to create a conducive environment to economic development by enabling banks to collect their debts from debtors efficiently and thereby promoting a good business culture. It declares contracts authorizing a creditor bank with which a property has been mortgaged or pledged and whose claim is not paid within the time stipulated in the contract, to sell the property by auction upon giving a prior notice of at least 30 days to the debtor and to transfer the ownership of the property to the buyer, to be valid. It also provides for some other matters relative to the recovery of debts related to land-based credit.