TAIWAN Law and Practice Contributed by: Yafen Lin, Peng-Kwang Chen, I-Ming Chen and Weiyu Chiang, Formosa Transnational
• a formative judgment (ie, a court decision directly creating, altering or ending legal relations between the parties). Of the three types of final judgment, only a judgment of performance is enforceable. Declaratory and form - ative judgments are not enforceable because their declarative or formative effect takes force automati - cally upon such a judgment becoming final. Other Enforceable Titles Other enforceable titles include: • preliminary relief such as provisional attachment, provisional injunction, or provisional enforcement; • settlement or mediation pursuant to the Taiwan Code of Civil Procedure, ie, where made in court or initiated through petition to the court; • a notarised document authorising the compulsory enforcement; • a ruling of the court permitting auction of mort - gaged or pledged collateral; • a ruling of the court granting compulsory enforce - ment of a promissory note; • a payment order; and • juvenile court fines, prosecutors’ execution orders, and town, city, and district office mediation orders. 2.2 Enforcement of Domestic Judgments Monetary Claims The enforcement procedure applicable to mone - tary claims depends on the nature of the subject of enforcement. • Where the asset to be enforced is movable proper - ty, the compulsory enforcement shall be carried out by means of attachment, auction, or sale (Article 45 of the Compulsory Enforcement Act). • Where the asset to be enforced is immovable prop - erty, the compulsory enforcement shall be carried out by means of attachment, auction, and compul - sory administration (Article 75 (1) of the Compul - sory Enforcement Act). • Where the asset to be enforced is a vessel or an aircraft, compulsory enforcement of immovable property shall apply mutatis mutandis (Article 114 (1) of the Compulsory Enforcement Act).
• Where the asset to be enforced is a receivable claim against a third party, the court shall render a seizure (attachment) order to prohibit the debtor from collecting/disposing of such claim and to pro - hibit the third party from repaying the debtor. At its discretion, the court may further issue the follow - ing types of orders (Article 115 of the Compulsory Enforcement Act): (a) a court order to allow the creditor to collect or transfer the claim to the creditor; or (b) a court order to require a third party to pay a receivable owed to the debtor to the court instead, following which the court will forward such payment to the creditor. Despite the foregoing, assets such as welfare ben - efits, social assistance, and subsidy receivables of a debtor shall not be subject to compulsory enforce - ment proceedings. Further, a seizure order rendered by the court over the salary of a debtor shall not exceed one-third of such salary. Non-monetary Claims Non-monetary claims include: (i) claims for the deliv - ery of things; and (ii) claims for action and no action. In respect of claims for the delivery of things, if the asset to be enforced is a movable property, where a debtor fails to observe the court order requiring deliv - ery of such property, the court may seize the property and deliver it directly to a creditor. If, upon a court order, it is immovable property that must be delivered, then where a debtor fails to comply with such order, the court may remove the property from the debtor’s possession and allow the creditor to take possession thereof. In practice, a court clerk will be present at the location of the real property to be enforced, usually together with local police officers, to take physical control of such immovable property from the debtor. Where the enforceable title is related to claims for action and no-action, the court may impose a default surcharge (ie, a sum of money as penalty for non- compliance) on a debtor or even place him/her into custody if such claims cannot be carried out by a third party instead.
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