Order No. 9789 of 2024: Forced Execution and Guarantee

The Order No. 9789 of April 11, 2024, issued by the Court of Cassation, provides an important interpretation regarding forced execution on the assets of guarantors. This ruling is situated within a complex legal context, where the rules concerning asset guarantees and the rights of creditors intertwine. In particular, the order analyzes the issue of whether a mortgage creditor can act on the assets of the guarantor in the presence of mortgages registered on the assets of the principal debtor.

The Regulatory Context

The central issue is based on Article 2911 of the Civil Code, which establishes specific rules regarding forced executions and priorities among creditors. This provision, in fact, deals with the conflict between mortgage creditors and unsecured creditors, but the Court has clarified that it does not apply in the case of different jointly liable co-debtors. Therefore, in the event that the creditor holds a mortgage on the assets of the principal debtor, they have the authority to proceed with forced execution on the assets of the guarantors as well.

Summary of the Ruling

The execution on the assets of the guarantor by the creditor holding a mortgage on the assets of the principal debtor is not subject to the prohibition set forth in Article 2911 of the Civil Code, an exceptional norm, not susceptible to extensive or analogical interpretation, which governs the potential conflict between different categories of creditors (mortgage and unsecured) acting on the assets of the sole debtor, rather than the case of different jointly liable co-debtors, holding distinct assets, which can be independently pursued at the discretion of the mortgage creditor.

This summary is crucial for understanding the significance of the ruling. It establishes that the prohibition provided by Article 2911 of the Civil Code does not apply to guarantors, who can be independently pursued by the mortgage creditor. In other words, the creditor has the freedom to choose which assets to pursue, whether those of the principal debtor or those of the guarantor, without incurring the limitations set for unsecured creditors.

Practical Implications

The implications of this ruling are manifold:

  • Strengthening the position of mortgage creditors, who can more directly seek recourse on the assets of the guarantors.
  • The necessity for guarantors to be aware of the risks associated with their guarantee, as their assets may be subject to forced execution.
  • Clarity on the dynamics between different co-debtors, who can now be pursued separately by the creditor.

In summary, Order No. 9789 of 2024 clarifies an important aspect of forced execution law, outlining a regulatory framework that favors mortgage creditors in their debt recovery actions.

Conclusions

In conclusion, the Court of Cassation has provided a decisive interpretation regarding the possibility of forced execution on the assets of guarantors. This ruling not only clarifies the applications of Article 2911 of the Civil Code but also offers a broader view on the relationships between creditors and debtors, emphasizing the importance of informed asset planning by those who choose to act as guarantors.

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