Draft Law of Ukraine

"On Amendment of Some Laws of Ukraine (Related to Protection of Creditor’s Rights)"

The goal of this draft is to make amendments to procedural codes of Ukraine and a series of current laws of Ukraine.

Amendments suggested to the Law On Execution Procedure stipulate that the State Execution Service shall have the right to satisfy creditor’s claim provided this claim has been recognized by the debtor in accordance with the established order. Execution fee (exacted from the debtor for the enforced execution of the decision) will be collected only after the claimant’s requirements are satisfied. According to this draft the state executor will have the right to seize, at his sole discretion, owed funds from any debtor’s bank account that becomes known to participants of the execution procedure.

According to the amendments proposed to the Commercial Procedural Code of Ukraine and to the Civil Procedural Code of Ukraine court cases shall be considered per the location (place of residence) of the plaintiff if the defendant is a non-resident of Ukraine and has no representation in Ukraine.

Amendments to the Law On the Procedure of Repayment of Taxpayers’ Liabilities to Budgets and State Special Purpose Funds determine that assets to be used as collateral in tax pledge shall not exceed double sum of agreed tax liabilities. Control body shall determine which assets may be in tax pledge.

Amendments to the Law On Taxation System stipulate that a payer of taxes and fees (mandatory payments) shall have the right to receive, free of charge, information from control bodies on payment of taxes, fees (mandatory payments) by other taxpayers.

Amendments to the Law On Pledge provide for obligatory assessment of real estate prior to its pledging if the value of this real estate exceeds 300 minimum wages (over USD 9, 167.00)

Adoption of this draft will facilitate protection of creditor’s rights in the event of forced execution of decisions issued by courts or other bodies, allow to reduce the value of assets which can be in tax pledge. At the same time, this draft law, if adopted, will give the right to taxpayers to get needed information from control bodies concerning payment of taxes, fees (mandatory payments) by other taxpayers.