GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
Specifically, for collateral for bond loans, a flat fee of EUR100 currently applies for each reg - istration of security interests with the relevant public registries. As regards hypothecation deeds, where a public notary needs to be involved, the notarial fees are in the range of 0.2%–1% of the secured amount. However, if the notarial hypothecation deed is provided as collateral for a bond loan financ - ing, then only a fee amounting to EUR2,500 per deed will apply. With regard to pre-notation of hypothecation, the legal costs for the application and issuance of the court order for each hypoth - ecation pre-notation amount to approximately The enforcement of security involves notary fees, court fees (if enforcement actions require court proceedings), registration fees (Land Reg - istry or Cadastre Office) and transfer tax, which is calculated as a percentage of the value of the transaction. Legal fees for the services of law - yers in enforcing the security agreements should be considered. 3.5 Legal Requirements Before an Entity Can Give Valid Security Perfection requirements must be complied with for the valid establishment of a security, mainly involving registrations in the competent Land Registry or Cadastre. Granting of security by corporate entities in the form of sociétés anonymes is further subject to potential related party transaction approvals and financial assistance restrictions. In particular, a special approval process for related party trans - actions is provided under Articles 99 to 101 of Law 4548/2018 for sociétés anonymes , which require approvals from the board of directors and EUR600, excluding VAT. Enforcement of Security
potentially from the general meeting of share - holders, which are subject to publication for - malities before the execution of the transaction. Financial assistance rules include restrictions on the granting of guarantees or other security interests in favour of purported acquirers or affili - ate entities, and whitewash resolutions involve positive corporate benefit assessments. 3.6 Formalities When a Borrower Is in Default • Formalities: The process of enforcing real estate security in Greece requires a court pro - cedure and potentially a judicial sale by auc - tion. The lender must ensure that the security is validly created and perfected. For security interests established under Legislative Decree 17.7/13.8.1923, with regard to companies under the legal form of a société anonyme , for the benefit of credit institutions, enforcement is more streamlined: no enforceable title is required, while secured creditors may publish a notice for the public auction of the pledged assets immediately, bypassing the three-day waiting period that applies in the standard enforcement procedure. The most expedited and straightforward enforcement process is set out for the realisation of security in the form of financial collateral. Aside from not requiring an enforcement title or the three-day waiting period, the financial collateral can be sold directly by the creditor, or the creditor may acquire ownership of the collateral and set off its value against the financial obliga - tions owed by the debtor. • Priority: The lender’s priority is determined by the timing of the registration of the secu - rity interest in the relevant registry, and the general rule “first in time, first in right” ( prior tempore, potior jure ). There is a ranking of creditors with preferences, such as the prefer - ential rights of the public (eg, tax authorities),
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