The Constitutional Court (CC) of Moldova will ask Parliament to set a clearer mechanism for notifying debtors of the creditors’ intention to use the realty guarantees for the raised loan if this is not repaid on time. The Court will insist on a mechanism that can ensure the observance of the rights of both of the sides.
Such a decision was taken on September 27 following the examination of a challenge submitted by a group of persons and a limited liability company, represented by two lawyers. These said the law is not clear enough. On the one hand, the Mortgage Law provides that the notification must be ensured by a recommended letter, with the confirmation of the receipt. On the other hand, the notification is considered received in seven days of the sending of information.
The Court ruled that the notification by the creditor represents a stage that is prior to the execution of the realty guarantees. The text of the challenged law is imprecise and unclear and needs to be reviewed.
The people or lawyers who are involved in a trial and consider that their constitutional right is violated can go to the CC. Such a procedure is called exception of unconstitutionality as it is considered that the laws passed by Parliament and the Government Decisions as well as other acts comply with the Constitution.
