Legal tip 375. Bankruptcy and Bank Guarantees
Friday, October 22, 2010 @ 10:01 AM
Just a reminder and clarification for those of you interested on this hard topic, even on a Friday :)
Bank Guarantees of Law 57/68 cover the return of funds advanced in off plan developments plus legal interests for those cases where the developer does not start or finish the works on time.
Of course these Guarantees keep being valid and enforceable if a developers enter into Administration or goes bust, as far as there is no First Occupation License in place.
So: if your developer is under creditor´s meeting, and you have a Bank Guarantee, DO NOT CARE too much about the developer´s situation and creditor´s meeting procedures..., if the developer has breached the contract due to delay or once he does it... go and execute your Bank Guarantee. This is simple.
The non so simple matter is if you were not granted a Bank Guarantee. For these cases, if money was deposited in a Bank account under a developer/ development´s name.... you need to act out of provision 1.2 of Law 57/68.
This last one is a harder fight....
Best wishes for the weekend.... I am trying to rest ;)
Maria
Gibraltar from Castellar Castle by Roberto Pecino at Flickr.com