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March 4, 2024
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Business Press Release Romanian News

Financial Instruments in Romania: Promissory Note

Business relationships between professionals in Romania can bring several advantages and various inconveniences. The latter is often caused by non-compliance with financial obligations, so the parties involved may be enforced.

When is the promissory note used in Romania?

To be implemented in Romania, it is necessary to go through some steps to obtain an enforceable title. To prevent this problematic procedure, any parties wishing to benefit from a guaranteed payment obligation in Romania can provide a guarantee by requesting a promissory note/cheque/bill of exchange from the other party and signing these enforceable titles by a guarantor debtor. Pavel Mărgărit & Associates Romanian Law Firm recommends using a lawyer specialised in commercial law and enforcement proceedings/ foreclosure in Romania to guide you in choosing a type of commercial guarantee suitable for your business and may also offer you guidance in rejecting any foreclosure/ enforcement proceedings or cancellation of the summons received, by filing the enforcement appeal in the form of opposition to the warrant in Romania.

The bill of exchange, the cheque and especially the promissory note represent enforceable titles used by professionals to guarantee payment obligations in Romania. In most cases, the amounts provided are guaranteed by natural or legal persons who acquire the status of debtor’s guarantors’ report of a payment obligation. Therefore, by ensuring these titles, a guarantee of fulfilling the obligations assumed by the persons in question is offered. The guarantor can be forced to be executed in Romania to pay the amount mentioned on the bill of exchange cheque promissory note.

If you have established such a guarantee in Romania, it is possible that if the principal debtor does not pay, you may be forced to act as a guarantor debtor.

As in the case of common law enforcement, the enforcement of a bill of exchange begins with the transmission of an account of an exchange order, which precedes any enforcement action. This must include the exact transcript of the statement of exchange / promissory note and the other documents from which the amount expected results. Because Law no. 58/1934 on the bill of exchange and a promissory note in Romania provides a concise term for the enforcement appeal, namely, five days, Pavel Mărgărit and Associates Romanian Law Firm recommend appealing to a lawyer specialised in commercial law and forced execution in Romania necessary defences when the guarantor debtor is illegally executed in Romania and who can analyse if the issued executory title has been duly completed and within the legal term, following the special legal provisions in the matter in Romania.

A lawyer specialising in commercial litigation and forced execution in Romania will be able to analyse the applicability of specific categories of defences, such as those regarding the nullity of the title and those arising from commercial relations before or after the issuance of the tags and any other procedural exceptions.

About Pavel, Margarit & Associates

Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm’s clients are foreign and top local companies and high worth individuals. In 2022, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked third place in Romania by the Legal 500 magazine. The Romanian law firm is also recognised by IFLR 1000 Financial and Corporate Guide 2022. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm can be found on their website.

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