ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
The lender may be entitled to enforce the relevant securities. In Italy, restrictions introduced during the COVID-19 pandemic that limited creditors’ ability to execute foreclosures or realise collateral on real estate have been removed. In addition, the market for the sale of non-performing notes is active in Italy, where spe - cialised players purchase and manage these loans, thereby improving liquidity and supporting the indus - try’s recovery. 3.7 Subordinating Existing Debt to Newly Created Debt Banks and companies’ shareholders (or funds’ unitholders) can enter into a subordination agreement, establishing one debt as ranking behind another in priority for collecting repayment from a borrower. A second-in-line creditor collects only when the priority creditor has been fully paid. When a lender accepts a subordination agreement, it acknowledges that another party’s claim or interest will take precedence over its own in the insolvency, winding-up or liquidation of the borrower. 3.8 Lenders’ Liability Under Environmental Laws Lenders are not legally liable for environmental issues affecting borrowers. 3.9 Effects of a Borrower Becoming Insolvent Legislative Decree No 14/2019 of 12 January 2019 (the “Insolvency Law”) regulates the borrower’s crisis and insolvency situations. The asset and financial imbalance of mutual funds and liquidation in cases of insolvency, in particular, is regulated by Article 57 (6-bis) and Article 57 (6-bis.1) of Legislative Decree No 58/1998 of 24 February 1998 (the “TUF”). Article 57 (6-bis) of the TUF provides that if the assets are insufficient to satisfy the fund’s obligations and there is no reasonable prospect that this situation can be overcome, the creditors or the management com - pany can request the fund’s judicial liquidation.
In order to protect the holders of financial instruments issued in securitisation transactions, Article 4 of Law No 130/1999 of 30 April 1999 expressly excludes pay - ments made by the assigned debtors in favour of the assignee company from the application of the bank - ruptcy claw-back action, pursuant to the Insolvency Law. The borrower’s insolvency is one of the situations giving rise to a default event and could lead to the Under Decree No 601/1973, some loans can be exempt from taxes otherwise applicable to the loan agreement and the security package (ie, registration tax, stamp duty, mortgage and cadastral taxes and taxes on government concessions). The parties may expressly exercise the option to apply the substitute tax regime (0.25% of the princi - pal amount of the loan) instead of the ordinary taxation under the facility agreement. The substitute tax applies upon option to: acceleration of the loan. 3.10 Taxes on Loans • transactions related to medium and long-term financing (carried out for more than 18 months by banks); • financing transactions, which last for more than 18 months and are set up by securitisation SPVs, EU insurance companies and EU undertakings for collective investment in transferable securities or UCITSs; and • securities of any kind, by anyone and at any time given in connection with financing transactions structured as issues of bonds or bond-like securi - ties.
4. Planning and Zoning 4.1 Planning and Zoning Framework
Land use, development, and construction in Italy are governed by a multi-level regulatory framework that combines national, regional and municipal legislation. At the national level, the main reference is Presidential Decree No 380/2001, which regulates building proce - dures, construction titles and enforcement measures.
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