The Saeima1 has adopted and
the President has proclaimed the following law:
Law on
Execution of Confiscation of Criminally Acquired Property
Chapter I
General Provisions for the Execution of Confiscation of
Criminally Acquired Property
Section 1. Purpose and Legal
Framework of the Law
(1) The purpose of the Law shall be ensuring an efficient
execution of confiscation of criminally acquired property
(hereinafter - the property) by satisfying the claims of victims
which are substantiated by enforcement documents submitted to the
record-keeping of a sworn bailiff.
(2) When enforcing a court ruling or a public prosecutor's
decision or penal order on confiscation of the property, the Law
on Bailiffs and the Civil Procedure Law shall be applied in so
far as it is otherwise provided for in this Law.
Section 2. Grounds for the Execution
of the Property Confiscation
A writ of execution or an extract of public prosecutor's
decision or penal order on the property confiscation (hereinafter
- the enforcement document) shall serve as the grounds for the
execution of the property confiscation.
Section 3. Limitation Period of the
Ruling on the Execution of the Property Confiscation
The ruling on the execution of the property confiscation shall
have no limitation period.
Section 4. Initiation of an
Enforcement Case
(1) A sworn bailiff, having received the enforcement document
and documents appended thereto according to the Criminal
Procedure Law, shall initiate an enforcement case.
(2) If the enforcement document and documents appended thereto
according to the Criminal Procedure Law do not contain the
information provided for in the Criminal Procedure Law, the sworn
bailiff shall determine a time period for rectification of
deficiencies, and it may not be less than 10 days. If the
deficiencies are rectified within the determined time period, the
sworn bailiff shall initiate the enforcement case.
(3) If the deficiencies are not rectified within the
determined time period, the sworn bailiff shall return the
documents to the court or the public prosecutor from whom he or
she has received such documents.
(4) The death of the debtor, capacity limitations, initiation
of the legal protection process, an extrajudicial legal
protection proceedings, or declaring of insolvency proceedings,
or termination of the debtor's operation shall not serve as an
obstacle for initiating the enforcement case and shall not serve
as the grounds for suspension or termination of the initiated
enforcement proceedings.
Section 5. Expenses of the Execution
of the Property Confiscation
The expenses of the execution of the property confiscation
shall be determined pursuant to the provisions of the Civil
Procedure Law regarding expenses of a judgement enforcement.
Section 6. Change of the Subject of
the Execution of the Property Confiscation
(1) Before initiating the enforcement case or during the
enforcement proceedings, the sworn bailiff may transfer the
enforcement document along with documents appended thereto
according to the Criminal Procedure Law to the State Revenue
Service for execution if the following is detected:
1) the property has no value;
2) the selling of the property might be impossible;
3) the value of the property has significantly decreased in
comparison to the value of the property indicated in the
statement or the decision on the property seizure;
4) the expenses of the ruling enforcement might considerably
exceed the amount of money to be received from the sale.
(2) The sworn bailiff shall notify to the court or the public
prosecutor who has sent the enforcement document to him or her
for execution regarding transfer of the enforcement document to
the State Revenue Service for execution.
Section 7. Delivery of Documents
Documents referred to in this Law shall be delivered to the
person in accordance with the procedures laid down in the Civil
Procedure Law. The documents shall be delivered by electronic
mail item if the person has notified the sworn bailiff that he or
she agrees to use electronic mail for communication with the
sworn bailiff. In such case, the sworn bailiff shall send the
documents to the electronic mail address indicated by the person.
If the sworn bailiff finds any technical barriers to the delivery
of judicial documents by electronic mail item, the documents
shall be delivered in accordance with the procedures laid down in
the Civil Procedure Law.
Section 8. Examination of Premises
during the Execution of the Property Confiscation
(1) Immediately after initiating the enforcement case, the
sworn bailiff shall verify the existence of the confiscated
property indicated in the enforcement document.
(2) If an adult person refuses to let the sworn bailiff in the
confiscated immovable property, premises or storage facilities
regarding of which there is an information that the confiscated
property might be located therein, the sworn bailiff shall invite
a police representative, in the presence of which she or he shall
enter into the immovable property, the premises or the storage
facilities and take the necessary steps.
(3) If the sworn bailiff detects that the immovable property,
the premises or the storage facilities are locked up or no adult
person is present therein, he or she shall leave a notification
at the respective immovable property, premises or storage
facilities regarding the obligation to provide entering of the
sworn bailiff into the immovable property, the premises or the
storage facilities on the determined date and time by specifying
that in case it is not provided, a forced opening of the
immovable property, the premises or the storage facilities will
be carried out in presence of the police. If the confiscated
property is located in premises or storage facilities owned by
third parties, the notification shall be sent to the relevant
persons as a postal item.
(4) If entering of the sworn bailiff into the immovable
property, the premises or the storage facilities is not provided
in the time indicated in the notification, a forced opening of
the immovable property, the premises or the storage facilities in
presence of the police shall be carried out. If no adult person
is present in the immovable property, the premises or the storage
facilities after opening thereof, the sworn bailiff, after the
forced opening of the premises, shall provide safe closing and
sealing thereof. The sworn bailiff shall leave a notification at
the respective immovable property, premises or storage facilities
with summons to arrive at the sworn bailiff's office to receive
the keys of the premises.
(5) The sworn bailiff shall draw up a statement on carrying
out the activities referred to in this Section.
Section 9. Action in the Case when
the Confiscated Property is Not Found
If the execution of the property confiscation is not possible
because the confiscated property is not found, the sworn bailiff
shall notify the court or the public prosecutor who has sent the
enforcement document for execution regarding termination of the
enforcement case without execution by specifying that the
confiscated property was not found.
Section 10. Postponement of
Enforcement Activities
The sworn bailiff may postpone the enforcement activity if it
is not possible due to technical or other reasons out of his or
her control.
Section 11. Termination of
Enforcement Proceedings
(1) Enforcement proceedings shall be terminated if the ruling
to be executed has become invalid.
(2) When terminating enforcement proceedings, the sworn
bailiff shall repeal the applied enforcement means.
(3) The sworn bailiff shall notify the court or the public
prosecutor who has sent the enforcement document for execution
regarding termination of the enforcement proceedings.
Section 12. Inclusions in Purchase
Price
(1) If the final ruling has taken effect in the criminal
procedure, the victim who has bidden, purchased without auction
or kept the confiscated movable property or immovable property
shall be allowed to include in the purchase price his or her
claim that is substantiated by the enforcement document.
(2) If the amount received from the sale is not sufficient to
satisfy all the claims of the victims, the victim may include in
the purchase price his or her claims only in the amount of such
sum owed to him or her in accordance with the calculation.
Section 13. Contracts Concluded on
the Confiscated Property
(1) If the person whose property is subject to execution of
confiscation has concluded a contract the subject of which is the
relevant property, such contract shall not be binding to the
person who has bidden or purchased without an auction, or kept
the property after an auction that has not taken place in
accordance with the procedures laid down in this Law (hereinafter
- the acquirer).
(2) Residential area rental agreements concluded by the
previous owner shall be binding to the acquirer of the immovable
property. If during the execution of the property confiscation
the sworn bailiff has a doubt regarding the legitimacy of the
rental agreement concluded by the previous owner, he or she shall
submit an application to the Public Prosecutor's Office asking to
conduct an examination.
(3) Debt obligations, burdens and pledge notations registered
for the confiscated property shall not serve as an obstacle for
execution of the confiscation. The person whose rights are
affected by the property confiscation can apply to the court in
accordance with general procedures against the person who owns,
possesses or holds such property (hereinafter - the debtor),
however he or she cannot claim for the confiscated property or
money obtained by the execution of confiscation.
(4) The confiscated property shall not be reclaimed with a
property claim.
Section 14. Appealing Activities of
a Sworn Bailiff
Activities of the sworn bailiff taken within the execution of
confiscation can be appealed in the cases and in accordance with
the procedures laid down in this Law.
Chapter
II
Execution of Confiscation of Financial Resources and Movable
Property
Section 15. Execution of
Confiscation of Financial Resources
If any financial resources are confiscated, the sworn bailiff
shall give an order to a State or local government authority in
the account of which such financial resources are placed to
transfer them to his or her deposit account. If the confiscated
financial resources are in the account of another person, the
sworn bailiff shall give the order to credit institution on
transferring thereof to the deposit account of the sworn bailiff.
The order of the sworn bailiff shall be executed immediately.
Section 16. Seizure of Movable
Property
(1) After initiating the enforcement case, the sworn bailiff
shall examine the status of the movable property in its location.
If contents or value of the property indicated in the enforcement
document has changed considerably or if there are any other
circumstances due to which seizure of the property is required,
the sworn bailiff shall seize the property.
(2) Seizure of the movable property means inventory,
photo-fixating, appraisal and guarding such property.
Section 17. Inventory,
Photo-Fixating and Appraisal of the Property
(1) The sworn bailiff shall notify the property custodian
appointed within the framework of the criminal procedure
regarding the inventory of the property. If the property
custodian does not participate in inventory of the property, the
sworn bailiff shall inventor the property without his or her
presence.
(2) In inventorying the property, its individual
characteristics and quantity shall be indicated, the new articles
shall be separated from the used ones, and the property shall be
photo-fixated.
(3) In inventorying precious metals, official hallmarks (assay
marks) shall be indicated, if such are known. When articles
decked with jewels are inventoried, the number and colour of
stones along with size and name shall be indicated, if known.
(4) In inventorying articles, and also articles and materials
kept in article packaging, the numbers or symbols on their
packaging and the names and description of the articles to be
kept in such packaging shall be indicated.
(5) The sworn bailiff may pack items of one kind in packages
by specifying the single name of the packed items in the property
inventory statement. Separate items can be packed in packages by
specifying the names of inventoried items on the packing.
(6) The property shall be appraised by the sworn bailiff
according to the existing local prices considering depreciation
of the property. The sworn bailiff may invite an expert for
appraisal of the property.
Section 18. Property Inventory
Statement
(1) The following shall be indicated in a property inventory
statement:
1) the time and place of drawing up the statement;
2) the official appointment location of the sworn bailiff and
location of his or her practice, and the given name and surname
of the sworn bailiff;
3) the court or public prosecutor ruling on the confiscation
of the property which is being executed;
4) the given name and surname of witnesses, if any participate
in the inventory, his or her declared place of residence and
additional address indicated in the declaration, but if none -
the place of residence, regarding an official - the given name,
surname and position;
5) the name of each item inventoried and its individual
features (Section 17), the appraisal of each individual item and
the value of the entire inventoried property;
6) the given name, surname and declared place of residence,
the additional address indicated in the declaration, but if none
- the place of residence of the person to whom the property has
been transferred for storage;
7) the place of the property storing;
8) confirmation that the procedures regarding storage of the
inventoried property, his or her civil liability, and also
criminal liability if the property transferred for storage is
embezzled, alienated, concealed or substituted, has been
explained to the person who stores the property;
9) the remarks and objections made by the victim, debtor, or
other persons present at the inventorying of the property.
(2) Photos obtained during photo-fixating of the movable
property shall be stored in the enforcement case register.
(3) A property inventory statement shall be signed by a sworn
bailiff and the person who is storing the property, if he or she
has taken part in the inventorying of the property.
Section 19. Guarding of the Movable
Property
(1) If the sworn bailiff detects that the person storing the
property cannot continue fulfilment of his or her obligations,
does not fulfil the sworn bailiff's orders or does not provide
proper storing of the property, the sworn bailiff, at any stage
of the execution of confiscation, may withdraw the property and
transfer it for storage to another person against the signature.
The sworn bailiff shall draw up a statement on the replacement of
the person storing the property and the location of the
property.
(2) The property cannot be transferred for storage to a person
who is the debtor in the execution case of the property
confiscation, or a person in respect of whom the ruling taken
within framework of criminal procedure on the property
confiscation is being executed, or who is recognized as a
suspected person, an accused or a convicted.
(3) When receiving the property for storage, the person
storing the property shall certify with his or her signature
that:
1) the property will not be alienated, pledged and used, and
expenses related to the property storage will not be
unjustifiably increased;
2) he or she is aware that he or she can be held criminally
liable for embezzling, alienation, concealing or substituting of
the property.
(4) The person storing the property may change the place of
storing of the seized items upon a prior co-ordination thereof
with the sworn bailiff.
(5) Upon request of the sworn bailiff, the person storing the
property shall present the seized property transferred to him or
her for storage in time and place determined by the sworn
bailiff.
(6) The person storing the property shall receive a
remuneration for storage of the property.
(7) The sworn bailiff shall withdraw the confiscated movable
property from the person storing the property:
1) to transfer it for sale in the commission;
2) prior to selling at an auction, if necessary;
3) for transferring it to the acquirer or the State Revenue
Service.
(8) The sworn bailiff shall draw up a statement on performance
of the activities indicated in Paragraph seven of this Section;
and it shall be signed by the person storing the property and the
sworn bailiff.
Section 20. Procedures for Seizure
and Selling Intangible Assets
(1) The sworn bailiff shall take a decision to seize a share
of equity or stocks of a commercial company or debentures of a
cooperative partnership, and indicate the seized articles and
their appraisal in the decision. The sworn bailiff shall
determine the forced sale value of debentures and share of equity
or stocks according to prices existing in the relevant region but
it shall not be lower than the nominal value of debenture, share
of equity or stock. Where necessary, on his or her own
initiative, the sworn bailiff may invite an expert for
determining the forced sale value.
(2) Along with the decision to seize shares of equity of a
commercial company, the sworn bailiff shall issue an order for
the board of directors of the commercial company and the
commercial register authority to comply with the prohibition to
alienate or pledge the confiscated shares of equity, or burden
them with other property rights or rights regarding
obligations.
(3) Along with decision to seize debentures or stocks of a
commercial company, the sworn bailiff shall issue an order for
the board of directors of the cooperative partnership or
commercial company respectively to comply with the prohibition to
alienate or pledge the confiscated debentures or stocks, or
burden them with other property rights or rights regarding
obligations.
(4) The sworn bailiff shall take decision to seize securities
or other financial instruments admitted to public circulation, in
which he or she specifies the seized financial instruments and
market price thereof that is specified to such instruments on the
website of the regulated market operator on the day of the
decision-taking.
(5) Along with decision to seize securities or other financial
instruments admitted to public circulation, the sworn bailiff
shall issue an order to the credit institution or the investment
service provider, who acts with its financial instruments on
behalf of the debtor, according to which he or she prohibits to
alienate or pledge the confiscated financial instruments, or
burden them with other property rights or rights regarding
obligations. If the seized financial instruments are in the
original register of the Latvian Central Depository, such order
shall be issued to the Latvian Central Depository.
(6) Only paper-form securities shall be inventoried. When
inventorying securities, their quantity, class, number and
nominal value shall be indicated, if known. The sworn bailiff
shall withdraw the inventoried securities and, if their
maintaining cannot be provided, such securities can be
transferred to a credit institution for storing.
(7) The sworn bailiff shall sell shares of equity, stocks and
debentures of a commercial company, and also paper-form
securities and financial instruments, which are not admitted for
sale at a place of trading of financial instruments, in an
auction; but, if it has failed and nobody has applied for keeping
them after an auction that has not taken place in accordance with
the procedures laid down in this Law, they can also be sold
without an auction. After alienation of shares of equity, stock
or debentures, the sworn bailiff shall notify the board of
directors of the commercial company or the cooperative
partnership and the commercial register regarding revocation of
the seizure.
(8) The sworn bailiff shall assign the selling of stocks in
public circulation and other financial instruments admitted for
sale at a place of trading of financial instruments to an
investment brokerage firm, which acts with the confiscated
financial instruments on behalf of the debtor, or to a credit
institution by giving an order to sell the confiscated financial
instruments at a place of trading of financial instruments for
market price and transfer the obtained funds to the deposit
account of the sworn bailiff within a month. If selling of
financial instruments within the time-limit determined by the
sworn bailiff has failed, the sworn bailiff may prolong the sales
time-limit.
Section 21. General Provisions for
the Sale of Movable Property
(1) The sworn bailiff, at his or her discretion, shall sell
the property in one auction, transfer it to a trading company for
selling according to the commission provisions or sell it without
auction in accordance with the procedures laid down in this
Law.
(2) The starting sales price of the property shall be the
property value indicated in the statement or the decision to
arrest the property or, if the property is seized - the property
value determined by the sworn bailiff according the prices
existing in the relevant region, but if the appraisal was carried
out by an expert - the price determined by the expert.
(3) The sworn bailiff can sell the property as one item if
equal articles or aggregation of articles is confiscated or if a
separate selling of the confiscated articles is inexpedient.
(4) After selling of the property, the sworn bailiff shall
give an order to the relevant public register to revoke the
arrest imposed by the person directing the proceedings, and also
to cancel encumbrances, pledge notations and pledge rights
registered to the property or, if possible, shall cancel pledges,
pledge and encumbrance notations including the notations on
arresting the property by using online regime.
Section 22. Sales of Movable
Property in Commission
(1) The movable property shall be sold in commission through a
trading company.
(2) Within 30 days from the day of transferring of the
property for commission, the trading company shall pay the
received amounts into the deposit account of the sworn bailiff.
The trading undertaking shall receive remuneration in accordance
with the terms of the contract.
(3) The sworn bailiff shall reappraise the property, which is
not sold within 30 days from the day of its transferring to the
trading company, but the price cannot be reduced for more than 50
per cent from the starting price of the property.
(4) If the property is not sold within 30 days from the day of
its reappraisal, the sworn bailiff shall invite the victim to
keep the property for himself or herself for the reappraisal
price. The victim has the right to notify the sworn bailiff
regarding keeping the property for himself or herself within 14
days from the day of sending out the invitation.
(5) If several victims wish to keep the seized property for
themselves for the reappraisal sum, an auction shall be held
among these persons. Bidding shall be started from the
reappraisal sum. The sworn bailiff shall notify the time and the
place of the auction to the persons in writing seven days in
advance. If an invited person does arrive at the auction, it
shall be considered that he or she has waived the rights to keep
the property for himself or herself. If only one person arrives
at the auction, he or she can keep the property for the
reappraisal price without bidding.
(6) If none of the victims keeps the property or nobody
arrives at the auction referred to in Paragraph five of this
Section, the sworn bailiff shall sell the property in another
manner provided for in this Chapter or transfer it to the State
Revenue Service.
Section 23. Sale of Movable Property
in Auction
(1) The sworn bailiff shall sell the movable property in an
auction in accordance with the procedures regarding the sale of
the movable property in auction laid down in the Civil Procedure
Law, insofar as it is otherwise provided for in this Law.
(2) Auction announcement shall contain the property to be sold
and its starting price, the amount of security that has to be
paid to the deposit account of the sworn bailiff, the place and
the time of the sale, given name, surname, the official
appointment location and the deposit account number of the sworn
bailiff, and also that the auction is being organized in an
enforcement case on confiscation of criminally acquired
property.
(3) The sworn bailiff shall notify the victim regarding the
auction.
(4) The security paid by the person who has bidden the
property to be sold shall be included in the purchase price.
Within seven days from the auction day, the security paid by
other participants of the auction, except the last outbidden
bidder, shall be returned. The security paid by the last
outbidden bidder shall be returned to him or her immediately
after the full bidden amount is paid by the highest bidder. If
the last outbidden bidder keeps the property after an auction
that has not taken place, the security paid by him or her shall
be included in the purchase price.
(5) The auction shall be deemed to have been effected even if
only one bidder participates. In such case, he or she can keep
the property for the starting price without bidding.
Section 24. Participants who are Not
Entitled to participate in the Auction and Sale of the Property
without Auction
Participation in auction of the confiscated property and also
buying the confiscated property without an auction is prohibited
for the sworn bailiff who carries out the execution of the
specific property confiscation, the expert who has carried out
the appraisal referred to in Section 17, Paragraph six of this
Law, the debtor, and the person who is admitted suspect, accused
or convicted in the criminal procedure within the framework of
which the ruling on the property confiscation is being
executed.
Section 25. Announcement of an
Auction as not Having Taken Place and Consequences of the Auction
that Has not Taken Place
(1) A sworn bailiff shall announce an auction as not having
taken place if:
1) the bidders have failed to attend the auction;
2) the highest bidder, within the time limit set, does not pay
the whole amount due from him or her.
(2) The sworn bailiff shall draw up a statement on the fact
that the auction has been admitted as having not taken place in
case referred to in Paragraph one, Clause 1 of this Section and,
within three days after the auction, shall notify the victim by
inviting him or her to keep the property for himself or herself
for the starting price of the auction that has not taken place.
The victim has the right to notify the sworn bailiff regarding
keeping the property for himself or herself for the starting
price of the auction that has not taken place within 14 days from
the day of sending out the sworn bailiff's invitation.
(3) If several victims wish to keep the property for
themselves for the starting price of the auction that has not
taken place, an auction shall be held among these persons.
Bidding shall start with a starting price of the auction that has
not taken place. The sworn bailiff shall notify the time and the
place of the auction to the persons in writing seven days in
advance. If an invited person does arrive at the auction, it
shall be considered that he or she has waived the rights to keep
the property for himself or herself. If only one auction
participant arrives at the auction, he or she can keep the
property for the starting price without bidding.
(4) If no victim's application for keeping the property is
received, the sworn bailiff may sell the property in another
manner provided for in this Chapter or transfer it to the State
Revenue Service.
(5) The sworn bailiff shall draw up a statement on the fact
that the auction has been admitted as having not taken place in
the case referred to in Paragraph one, Clause 12 of this Section
and, within three days after the auction, shall notify the
highest bigger, the last overbidden bidder and the victim by
inviting the last overbidden bidder to keep the property for the
highest price bidden by him or her. The last overbidden bidder is
entitled to notify the sworn bailiff about keeping the property
for himself or herself for the highest price bidden by him or her
within 14 days from the day of sending out the sworn bailiff's
invitation. If the last bidder has failed to give a notice about
keeping the property for himself or herself within the time limit
provided for in the Law or has refused to keep the property, the
sworn bailiff shall announce a repeated auction immediately.
(6) If the security paid in the case referred to in Paragraph
one, Clause 2 of this Section is not returned, it shall be added
to the total sum received for the property. The paid security
shall be added to the total sum also in the case when the highest
bidder did not have the right to participate in the auction and
if the last overbidden bidder has not notified regarding keeping
the property for himself or herself for the highest price offered
by him or has refused to keep it.
(7) The person who keeps the property for himself or herself,
shall make the payment and receive the property in accordance
with the procedures laid down in the Civil Procedure Law.
Section 26. Sale of Movable Property
without Auction
(1) The sworn bailiff may sell the confiscated property to a
specific person (a buyer) without an auction if the sale of the
confiscated property might be impossible or if the sale in the
auction has failed , and also in the cases provided for in this
Law. The sworn bailiff shall decide on sale of the confiscated
property without an auction and specify in such decision the
circumstances which admit the sale of the property without an
auction. The decision shall be sent to the victim by a registered
postal item, and the victim may appeal the decision in accordance
with the procedures laid down in Section 632 of the Civil
Procedure Law.
(2) When the time limit set for appeal of the decision drawn
up by the sworn bailiff is expired, but if it has been appealed -
when the court ruling by which the complaint was declined has
come into effect, the sworn bailiff shall notify the buyer
indicated in the decision regarding the time limit that may not
exceed one month within which the purchase price has to be paid
to the deposit account of the sworn bailiff.
(3) If several persons have expressed a wish to buy the
confiscated property, an auction shall be organized.
(4) If the buyer indicated in the decision of sale of the
property without an auction does not pay the purchase price to
the deposit account of the sworn bailiff within the time limit,
the sworn bailiff may take decision to sell the property in
another manner provided for in this Chapter or, if he or she
considers that the sale of the property will not be possible,
transfer it to the State Revenue Service.
Section 27. Declaration of an
Auction as Invalid
(1) Participants of the auction may appeal an action of the
sworn bailiff that gives the grounds to recognise the auction to
be invalid in accordance with the procedures laid down in Section
632 of the Civil Procedure Law.
(2) A court shall recognise an auction to be invalid, if:
1) any person has not been allowed to participate in the
auction unjustifiably, or a higher bid has been refused
wrongly;
2) the property was bought by a person who was not entitled to
participate in the auction;
3) the sworn bailiff or bidder has demonstrated bad faith.
(3) If the auction is declared to be invalid, a repeated
auction shall be organized.
Chapter
III
Execution of Immovable Property Confiscation
Section 28. General Provisions for
the Sale of Immovable Property
(1) The sworn bailiff shall sell the confiscated immovable
property in the same auction, but if it has failed, the
confiscated immovable property may be sold without an auction in
accordance with the procedures laid down in this Law.
(2) The starting price of the immovable property sale shall be
the property value indicated in the statement or the decision on
arrest, or if the immovable property has been appraised, the
forced sale value of the immovable property determined by a
certified immovable property appraiser.
(3) The sworn bailiff shall sell the immovable property in an
auction in accordance with the procedures for the sale of the
immovable property in auction laid down in the Civil Procedure
Law, in so far it is otherwise provided for in this Law.
Section 29. Notification Regarding
the Execution of the Immovable Property Confiscation
(1) The sworn bailiff shall send a registered postal item
regarding the execution of the immovable property confiscation to
the co-owner of the immovable property (except co-owners of the
residential house that is not divided in residential properties,
and also co-owners of garages and the land under multi-apartment
residential house) and the local government, in the
administrative territory of which the immovable property or a
part thereof is located.
(2) When sending the notification referred to in Paragraph one
of this Section to a local government, the sworn bailiff shall
require from the local government the following:
1) information regarding the tax debt of the immovable
property and the decision of the tax debt recovery, if there is
any;
2) the notification on immovable property tax amount for the
taxation year.
(3) The local government shall submit to the bailiff the
documents referred to in Paragraph two of this Section not later
than seven days before the auction closing date indicated in the
auction announcement. If the period for which the immovable
property tax has to be paid in accordance with the law continues
in the next taxation year as well, the local government shall
additionally send the notification regarding the amount of the
immovable property tax to the sworn bailiff for the next taxation
year until 15 January of such year.
Section 30. Inventory and Appraisal
of the Immovable Property
(1) After initiating the enforcement case, the sworn bailiff
shall examine the condition of the immovable property. If there
are circumstances that require inventory of the property, the
sworn bailiff may carry out the inventory of the immovable
property.
(2) If the value of the immovable property differs
significantly from the value of the property indicated in the
statement or the decision to impose an arrest, upon request of
the sworn bailiff, the immovable property shall be appraised by a
certified immovable property appraiser by determining the forced
sale value of the immovable property.
Section 31. Administration of
Immovable Property
(1) Inventoried immovable property shall, until the transfer
to the new owner, remain in the administration of the former
possessor or manager.
(2) The sworn bailiff, at his or her own discretion, may
appoint an immovable property manager who has the same liability
as the person storing the movable property laid down in this Law.
The manager shall receive a remuneration for administering of the
immovable property except when he or she is a relative of the
debtor, the suspect, the accused or the convicted, or a tenant or
a lessee of the immovable property.
(3) The possessor or manager of the property shall preserve
the inventoried immovable property in the condition in which it
was at the moment of inventorying. If the sworn bailiff
establishes that the possessor or the manager of the immovable
property cannot carry on the performance of his or her duties, or
does not provide a proper property administration, the sworn
bailiff may take decision to replace the property manager at any
stage of execution of the ruling. The sworn bailiff shall draw up
a statement on replacement of the immovable property manager.
(4) The possessor or the manager of the immovable property
shall provide an accounting to the sworn bailiff regarding the
period of administration of the property. The possessor or the
manager of the immovable property shall transfer income received
from the immovable property to the sworn bailiff and such income
shall be added to the amount received from the sale of such
property.
Section 32. Announcement of an
Auction of Immovable Property
(1) Provisions of Section 606 of the Civil Procedure Law shall
be applied to the announcement of an auction of immovable
property, in so far it is otherwise provided for in this
Section.
(2) The following shall be set out in a notice regarding an
auction of immovable property:
1) the given name and surname of the debtor; for legal persons
- their name and legal address;
2) the given name, surname, official appointment location and
location of practice of the sworn bailiff;
3) a short description, location and cadastre number of the
immovable property;
4) an appraisal of the immovable property;
5) the initial auction price and the bid increment;
6) the start date and final date and time of the auction;
7) the amount of security to be paid into the deposit account
of the sworn bailiff;
8) the date until which a person who wishes to participate in
the auction may pay in the amount of security and ask the sworn
bailiff to authorise it for participation in the auction;
9) indication to a website where the information regarding
procedures and provisions for registration of persons for
participation in the auction and participation in bidding is
available;
10) information that the auction is being organized in an
enforcement case regarding confiscation of criminally acquired
property.
(3) Concurrently with sending a notice of an auction of
immovable property for publication in the official gazette
Latvijas Vēstnesis, the sworn bailiff shall notify the
victim and the co-owner of the immovable property, if any (except
co-owners of a residential house that is not divided in
residential properties, and also co-owners of garages and the
land under multi-apartment residential house), regarding the
auction by a registered postal item.
Section 33. Security of Purchase of
the Immovable Property
The amount of the security of purchase of the immovable
property, the procedures for the payment thereof, and also
provisions and procedures for returning thereof shall be
determined in accordance with the Civil Procedure Law.
Section 34. Restrictions for
Acquisition of the Confiscated Immovable Property
The sworn bailiff who carries out the execution of the
specific immovable property confiscation has no right to
participate in auction of the confiscated immovable property and
also to buy the immovable property without an auction for the
person who has carried out the appraisal of the immovable
property referred to in Section 30 of this Law, the debtor and
the person who is admitted suspect, the accused or the convicted
in the criminal procedure within the framework of which the
ruling on the property confiscation is being executed. Compliance
with restrictions regarding purchase of immovable property laid
down in other laws and regulation shall be under responsibility
of the auction participants themselves.
Section 35. Procedures for and
Consequences of an Auction
(1) Authorization of auctions' participants for an auction of
immovable property, the course of the auction and the
consequences of the auction shall be determined in accordance
with the Civil Procedure Law, in so far it is otherwise provided
for in this Law.
(2) Security which has been paid by a person who has bought
the immovable property at auction shall be included in the
purchase price. Within seven days from the auction closing day,
the security paid by other participants of the auction, except
the last outbidden bidder, shall be returned. The security paid
by the last outbidden bidder shall be returned to him or her
immediately after the full bidden amount is paid by the highest
bidder. If the last outbidden bidder keeps the property after an
auction that has not taken place, the security paid by him or her
shall be included in the purchase price.
Section 36. Approval of a Statement
on Auction of Immovable Property
The application for corroboration of the immovable property in
the acquirer's name shall be submitted and the statement of the
auction shall be approved in accordance with the procedures laid
down in the Civil Procedure Law. The court shall notify the sworn
bailiff, the acquirer of the immovable property and the person
who has submitted a complaint in accordance with the procedures
laid down in the Civil Procedure Law asking to admit the auction
to be invalid, regarding examination of the case.
Section 37. Announcement of an
Auction as not having Taken Place and Consequences of the Auction
the has not Taken Place
(1) A sworn bailiff shall announce an auction as not having
taken place if:
1) no participant is authorised for the auction;
2) no person of those who have been authorised for the auction
bids more than the starting price;
3) the highest bidder does not pay the whole amount due from
him or her within the laid down time limit;
4) a notification from the security manager of a site of
electronic auctions regarding significant technical failures
which may influence the result of the auction and may serve as
grounds for announcing the auction as not having taken place in
accordance with the Civil Procedure Law has been received in
accordance with the procedures laid down in the Civil Procedure
Law.
(2) The sworn bailiff shall draw up the statement and give
notice to the victim and co-owners of the immovable property, if
any, that the auction has been announced as not having taken
place in accordance with Clause 1, 2 or 4 of Paragraph one of
this Section. The notification regarding recognition of the
auction as not having taken place shall be sent to participants
who have been authorised for the participation in the auction by
using a site of electronic auction. The sworn bailiff shall draw
up the statement and give notice to the highest bidder and the
last overbidden bidder that the auction has been announced as not
having taken place in accordance with Clause 3 of Paragraph one
of this Section.
(3) If the auction has been announced as not having taken
place in cases referred to in Clause 1 or 2 of Paragraph one of
this Section, the sworn bailiff, without any delay, shall invite
the victim or co-owners of the immovable property, if any, to
keep the immovable property for the starting price of the auction
that has not taken place. Such persons have the right to notify
the sworn bailiff regarding keeping the immovable property for
themselves for the starting price of the auction that has not
taken place within 14 days from the day of sending out the sworn
bailiff's invitation.
(4) If several persons wish to keep the property for
themselves, an auction shall be organized among these persons and
the bidding shall be started from the starting price of the
auction that has not taken place. The sworn bailiff shall notify
the time and the place of the auction to the persons in writing
seven days in advance. If the person does not arrive at the
auction or the security in the amount of 10 per cent is not paid,
it shall be considered that he or she has waived the rights to
participate in the bidding. If only one auction participant
arrives at the auction, he or she can keep the immovable property
for the starting price without bidding.
(5) If the auction has been announced as not have taken place
in the case referred in Clause 3 of Paragraph one of this
Section, the sworn bailiff, without any delay, shall invite the
last overbidden bidder to keep the immovable property for the
highest price offered by him or her. The last overbidden bidder
is entitled to notify the sworn bailiff regarding keeping the
immovable property for himself or herself for the highest price
bidden by him or her within 14 days from the day of sending out
the sworn bailiff's invitation.
(6) If the last bidder has failed to notify regarding keeping
the immovable property for himself or herself within the time
limit laid down in the Law or has refused to keep the immovable
property, the sworn bailiff shall immediately announce a repeated
auction.
(7) In the case referred to in Clause 3 of Paragraph one of
this Section, the paid security shall not be returned; instead,
it shall be added to the total amount received for the immovable
property. The paid security shall be added to the total sum also
in case when the court admits that the highest bidder did not
have the right to participate in the auction and if the last
overbidden bidder has not notified regarding keeping the property
for himself or herself for the highest price offered by him or
has refused to keep it.
(8) Having received the notification referred to in Clause 4
of Paragraph one of this Section, the sworn bailiff shall act in
accordance with the procedures laid down in Section 614 and
Section 615, Paragraph 2.1 of the Civil procedure
Law.
(9) The person who keeps the immovable property for himself or
herself, within a month from the day of sending the notification
on keeping the immovable property referred to in Paragraph three
or five of this Section, or the highest bidder within a month
from the auction day referred to in Paragraph four of this
Section, shall pay the State fee for application for
corroboration of the immovable property in the name of the
acquirer laid down in Section 34, Paragraph one, Clause 15 of the
Civil Procedure Law, the State and the office fee indicated in
the laws and regulations regarding corroboration of property
rights in the Land Register, and also the amount indicated in
Paragraph three, four or five of this Section to the deposit
account of the sworn bailiff.
(10) After paying of the amount referred to in Paragraph nine
of this Section, the sworn bailiff shall submit an application
for corroboration of the immovable property in the name of the
acquirer in accordance with the procedures laid down in the Civil
Procedure Law. If the amount referred to in Paragraph nine of
this Section is not paid in the deposit account of the sworn
bailiff within the time limit, the security paid by the person
shall not be returned; instead, it shall be added to the total
amount received for the immovable property.
(11) If no one has applied for keeping of the immovable
property for himself or herself, he or she has not paid the
security or has not paid the amount due to him or her in
accordance with the procedures provided for in Paragraph nine of
this Section, the sworn bailiff shall decide on sale of the
immovable property without auction or transferring of the
immovable property to the State Revenue Service.
(12) The sworn bailiff shall transfer the immovable property
to the State Revenue Service with a statement on transfer and
acceptance. This statement shall serve as the grounds to ask the
State Revenue Service to cancel the debt liabilities, pledge
rights, claim security notations, insolvency notations, recovery
notations, prohibitions imposed by person directing the
proceedings, encumbrances accepted as a precondition in acquiring
the property and recorded in the Land Register with the immovable
property, and also entries and notations on rent, maintenance and
inheritance agreements except the agreements on rent of
residential premises.
Section 38. Announcement of an
Auction to be Invalid
(1) A court shall announce an auction to be invalid in the
cases and in accordance with the procedures laid down in the
Civil Procedure Law.
(2) If the auction is announced to be invalid, a repeated
auction shall be organized.
Section 39. Procedures for the Sale
of Immovable Property without an Auction
(1) A sworn bailiff may sell the confiscated immovable
property to a specific person (buyer) without an auction, if the
sale thereof in the auction has failed. The sworn bailiff shall
decide on sale of the immovable property without an auction and
indicate in such decision the circumstances, which admit the sale
of the immovable property without an auction. The decision shall
be sent to the victim and co-owners of the immovable property, if
any, by a registered postal item. The victim or a co-owner of the
immovable property may appeal to the decision in accordance with
the procedures laid down in Section 632 of the Civil Procedure
Law.
(2) The price, at which the sale of the confiscated immovable
property without an auction is allowed, shall not be reduced for
more than 75 per cent from the starting price of the immovable
property sale.
(3) When the time limit set for appeal of the decision drawn
up by the sworn bailiff is expired, but if it has been appealed -
when the court ruling by which the complaint was declined has
come into effect, the sworn bailiff shall notify the buyer
indicated in the decision regarding the time limit within which
the purchase price has to be paid to the deposit account of the
sworn bailiff along with the State fee for corroboration of the
immovable property in the name of the acquirer laid down in the
Civil Procedure Law, and also the State and the office fee laid
down in the laws and regulations regarding corroboration of the
property rights in the Land Register. The determined time limit
for payment of the purchase price may not exceed one month.
(4) When the buyer has paid the amounts indicated in Paragraph
three of this Section to the deposit account of the sworn
bailiff, the sworn bailiff shall draw up a statement on the sale
of the immovable property without an auction and submit it to a
court for approval.
(5) If several persons have expressed a wish to buy the
confiscated property, an auction shall be organized.
(6) If the buyer indicated in the decision on the sale of the
immovable property without an auction does not transfer the
purchase price to the deposit account of the sworn bailiff within
the time limit, the sworn bailiff shall take decision on repeated
sale of the immovable property without an auction or the sale of
the immovable property in an auction, or, if he or she considers
that the sale of the property will not be possible, transfer it
to the State Revenue Service in accordance with the procedures
laid down in Section 37, Paragraph twelve of this Law.
Section 40. Approval of the
Statement on the Sale of the Immovable Property without an
Auction
The sworn bailiff shall submit the application for
corroboration of the immovable property in the name of the
acquirer and the court shall approve the statement on the sale of
the immovable property without an auction in accordance with the
procedures laid down in the Civil Procedure Law. The court shall
notify the sworn bailiff and the acquirer of the immovable
property regarding examination of the case.
Section 41. Sale of Immovable
Property Held Jointly
(1) When selling one or several undivided joint properties, if
such property is being inventoried, it shall be inventoried in
its entirety but only the confiscated undivided share, without
prior separation thereof, shall be sold at the auction.
(2) Immovable property held jointly may also be sold in its
entirety, if all co-owners wish it. The money received from the
sale shall be divided among the owners of the immovable property
but the amount due from the sale of the part of the confiscated
property shall be divided in accordance with the procedures laid
down in this Law.
Chapter
IV
Expenses for Execution of the Ruling and Distribution of the
Received Amounts
Section 42. Money Distribution
Calculation
(1) If there are several victims and if the amounts received
from the confiscated financial resources or the sale of the
confiscated property are insufficient for complete satisfaction
of claims of victims, the sworn bailiff shall draw up a
calculation for distribution of the money among victims and send
it to them.
(2) If the auction has been announced as not having taken
place and the victim, a co-owner or the last overbidden bidder
has expressed his or her wish to keep the immovable property or
the movable property for himself or herself, the sworn bailiff
shall draw up a calculation in order to establish the amount due
from the relevant person.
(3) The victim and the person who has expressed a wish to keep
the immovable property for himself or herself can appeal the
calculation drawn up by the sworn bailiff in accordance with the
procedures laid down in Section 632 of the Civil Procedure Law.
An ancillary complaint may be submitted regarding the decision of
the court.
Section 43. Procedures for Use of
the Proceeds from the Sale of Confiscated Property
(1) The sworn bailiff shall disburse the confiscated financial
resources and the money received from the sale of the confiscated
property according to the following sequence:
1) shall cover the compensation for the damage incurred to
victim which is substantiated by the writ of execution submitted
to this sworn bailiff for execution;
2) shall cover the adjudication enforcement expenses incurred
in the enforcement cases on confiscation of criminally acquired
property, recovery of compensation for damages incurred to the
victim and recovery of the tax debt of the immovable
property;
3) on the grounds of the notification on the amount of the
immovable property tax for taxation year, shall pay the immovable
property tax to the budget of the relevant local government for
the period from the next month after coming into effect of the
court ruling on confiscation of criminally acquired property
until the next month after coming into effect of the court ruling
by which the statement on the auction of the immovable property,
the statement on keeping of the immovable property after an
auction that had not taken place or the statement on the sale of
the immovable property has been approved;
4) covers the tax debt of the immovable property, which is
substantiated by a decision on the tax debt recovery submitted to
this sworn bailiff;
5)shall transfer the remaining financial resources to the
State budget.
(2) If the State is one of the victims, its claim for the
damage compensation shall be covered after covering of the ruling
execution expenses.
(3) If several enforcement cases have been put in regarding
the ruling by which the criminally acquired property was
confiscated, the sworn bailiff who sold the property, before
disbursement of the compensation, shall notify the relevant sworn
bailiff the record-keeping of which contains the enforcement
document, regarding disbursement of the compensation and the
amount thereof.
(4) If the financial resources received from the sale of the
confiscated property are insufficient for complete satisfaction
of all claims of victims according to the enforcement documents
contained in the record-keeping of this sworn bailiff, the claims
shall be satisfied in proportion to the amount owed to each
victim.
(5) If the financial resources received from the sale of the
confiscated property are insufficient for covering of the
remuneration for the sworn bailiff's work and expenses required
for performance of execution activities, it shall be covered from
the State budget in accordance with the procedures laid down by
the Cabinet.
Section 44. Sale of the Confiscated
Property before the Final Ruling
(1) If while enforcing the court decision on the property
confiscation taken in accordance with the procedures laid down in
Section 59 of the Criminal Procedure Law the sworn bailiff has
sold the confiscated criminally acquired property before the
final ruling has come into effect, the sworn bailiff shall store
the financial resources, and also the confiscated proceeds from
crime, from which the ruling enforcement expenses are deducted,
in the deposit account of the sworn bailiff until the time when
he or she receives the information regarding the person directing
proceedings regarding the final ruling in the criminal case and
the action with the financial resources stored in the account of
the sworn bailiff.
(2) The deposited financial resources shall be paid to the
victim and to the State in accordance with the procedures laid
down in Section 43 of this Law.
Chapter V
Acts with Confiscated Proceeds from Crime Transferred to the
State Budget
Section 45. Funding of Measures for
Combating Financial and Economic Crimes and Providing Support to
Crime Victims
Half of the confiscated proceeds from crime transferred to the
State Budget but not more than two million euro in a financial
year shall be transferred to a separate budget programme of the
Ministry of Justice in order to implement the required measures
for combating financial and economic crimes and providing support
to crime victims. The procedures for funding, distribution and
use of the funds of the budget program of the Ministry of Justice
shall be determined by the Cabinet.
Transitional
Provisions
1. Enforcement cases initiated before 31 July 2017 shall be
completed in accordance with the procedures laid down in the
Civil Procedure Law.
2. Paragraphs one and five of Section 43 of this Law shall
come into force on 1 January 2019.
3. Section 45 of this Law shall come into force on 1 January
2018.
4. Until the day of coming into force of Paragraphs one and
five of Section 43 of this Law, the sworn bailiff shall disburse
the confiscated financial resources and the financial resources
received from the sale of the confiscated property in the
following sequence:
1) shall cover the ruling enforcement expenses incurred in the
enforcement cases on confiscation of criminally acquired
property, recovery of compensation for damages incurred to the
victim and levy of the immovable property tax debt;
2) shall cover the compensation for the damages incurred to
victim which is substantiated by the writ of execution in the
record-keeping of this sworn bailiff;
3) on the grounds of the notification on the amount of the
immovable property tax for the taxation year, shall pay the
immovable property tax to the budget of the relevant local
government for the period from the next month after coming into
effect of the court ruling on confiscation of criminally acquired
property until the next month after coming into effect of the
court ruling by which the statement on the auction of the
immovable property, the statement on keeping the immovable
property after an auction that has not taken place or the
statement on the sale of the immovable property without an
auction has been approved;
4) shall cover the unpaid tax debt of the immovable property
which is substantiated by a decision to recover the tax debt
submitted to this sworn bailiff;
5) shall transfer the remaining financial resources to the
State budget.
Informative
Reference to European Union Directive
The Law includes legal norms arising from Directive 2014/42/EU
of the European Parliament and of the Council of 3 April 2014 on
the freezing and confiscation of instrumentalities and proceeds
of crime in the European Union.
This Law shall come into force on 1 August 2017.
The Law has been adopted by the Saeima on 22 June
2017.
President R. Vējonis
Riga, 5 July 2017
1 The Parliament of the Republic of
Latvia
Translation © 2017 Valsts valodas centrs (State
Language Centre)