The reward for traders of distrained property

Independent Association of Banks of Ukraine (IABU) asked the Constitutional Court of Ukraine (CCU) to give an authoritative interpretation of the Law of Ukraine «On Enforcement Proceedings» regarding reward for specialized trading organizations that sell the arrested property, the press service of the IABU informs.

IABU said in the request to the Constitutional Court that the Law from 02.10.2012 «On Enforcement Proceedings» was amended with fact that the costs associated with selling the property of the debtor shall not exceed 5 % of the value of the property.

However, the Ministry of Justice distinguished the concept of «cost» and «commission» and made changes to their regulations so that the reward for trading organizations remains at 15 %, which totally cancelled the effect from approved changes. Thus, creditors and debtors have unproductive costs, which affect the process of settlement of bad debts and repayment of credit in the banking system of Ukraine.

IABU stressed that the Cabinet of Ministers of Ukraine as a subject of legislative initiatives and the Verkhovna Rada of Ukraine, as the legislature, had intended to decrease the reward to specialized trading organizations that sell the arrested property from 15 to 5%.

In this regard, IABU asks Constitutional Court of Ukraine to interpret § 12 art. 62 and Part 4.66 of the Law of Ukraine «On Enforcement Proceedings” (№ 606 -XIV from 21.04.1999), namely, whether as a result of changes made to the following articles of the Law, the total reward for specialized trading organizations should be limited to 5 % of the sale of the property, including all costs associated with the organization and the sale of property.