GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Aris Sifakis, Sardelas Petsa Law Firm
• the secured debt has become due, either by its terms or through acceleration events (eg, breach of contract, non-payment); • the lender possesses an enforceable title, such as a court judgment, a payment order, an arbitration award or a notary deed; and • a formal demand for payment has been made, and the debtor fails to pay within a specified grace period (typically three days from notification, vary - ing with security type). The method of enforcement depends on the type of collateral. For most types, enforcement necessitates a court-supervised public auction, initiated by a bail - iff. The procedure includes determining the auction date with a notary, preparing a foreclosure report and notifying the debtor. Enforcement against a guarantor usually requires ini - tiating a judicial action to obtain a court judgment. In commercial guarantees, standard civil law defences (eg, benefit of discussion) are often waived in the rel - evant agreements. Greek Law 5123/2024 has streamlined the enforce - ment of pledged claims, allowing the pledgee to col - lect the claim without court procedure after a ten- day grace period from the date the secured claim becomes overdue. Financial collateral also benefits from a more expedit - ed process. No enforcement title or waiting period is required, and the creditor can enforce through appro - priation (acquiring ownership and setting off the value against the debt) or direct sale of the collateral, as per the agreement. Concerns for non-bank lenders include the following. • Greek law does not recognise the notion of a trust for security over local assets. A bondholders’ agent is, however, a recognised role within the bond loan framework. • Non-bank entities acquiring non-performing loans (NPLs) must appoint a credit-servicing firm licensed by the BoG to manage and enforce those claims.
In a typical private credit restructuring, the primary security interests enforced are those providing direct control over the business or key assets (such as share pledges, pledges over claims and mortgages, or non- possessory pledges over machinery or equipment). 6.2 Foreign Law and Jurisdiction As a general rule, a choice of foreign law, a submission to a foreign jurisdiction, and a waiver of immunity will be upheld and recognised in Greece. More specifi - cally, the following are worth noting. For contracts entered into after 17 December 2009, the Greek courts determine the applicable law based on Regulation (EC) No 593/2008 (the “Rome I Regula - tion”), which generally provides that the law chosen by the parties will apply. Bond loans Choice of Foreign Law Governing framework Article 74 paragraph 1 of the Company Law provides that the possibility of choosing the applicable law cov - ers all contractual obligations related to bond loans. Article 74 of the Company Law further clarifies that any matters not falling within the scope of the Rome I Regulation are governed by Article 25 of the Greek Civil Code, which provides that obligations arising from a contract are governed by the law to which the parties have subjected the contract. Limitations The choice of foreign law cannot override mandatory Greek law provisions or Greek public policy. Submission to a Foreign Jurisdiction EU courts Under Regulation (EC) 1215/2012, Greek courts are generally obligated to decline jurisdiction and recog - nise the chosen foreign EU court as having exclusive jurisdiction, provided the agreement is clear and in writing. Non-EU courts The validity is assessed under Greek private interna - tional law rules and relevant international conventions. Greek courts still typically respect the choice of juris - diction unless there is a strong reason not to (eg, the
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