Proclamation No. 65/1997 Civil Code (Amendment) Proclamation | GOALGOOLE | Because you need Information for your goals !
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Proclamation No. 65/1997 Civil Code (Amendment) Proclamation

PROCLAMATION NO. 65/1997
A PROCLAMATION TO AMEND
THE CIVIL CODE

WHEREAS, it needs to make the collection of loan amounts, that banks provide for various commercial and industrial development activities, efficient and thereby create a conducive atmosphere for economic transactions;
WHEREAS, it takes rather too long a time to obtain judgement, from courts of law, for the sale of bank collateral and to subsequently have it executed;
WHEREAS, consequently, banking business, sustaining on interest payments on loans it provides from public monies received by way of saving deposits, has been adversely affected;
WHEREAS, it is necessary to amend the Civil Code with respect to the sale of bank collateral;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1.    Short Title
This Proclamation may be cited as the “Civil Code (Amendment) Proclamation No. 65/1997.”
2.    Amendment
The 1960 Civil Code is amended as follows:
1)    The following new sub-Articles (3), (4), (5) and (6) are added after sub-Article (2) of Article 2851:
“3) Notwithstanding the provisions of sub-Articles (1) and (2) of this Article, an agreement authorizing a lending bank to sell, by public auction, a pledge given to secure its loans, upon giving a prior notice of at least 30 days to the pledger and to transfer ownership of the pledge to the buyer shall be valid.
4) The sale of a pledge by the lending bank pursuant to sub-Article (3) of this Article shall be deemed executed by an authorized agent of the pledger.
5) The provisions of Articles 394-449 of the civil Procedure Code shall, mutatis mutandis, be applicable while the bank is exercising its power to sell the pledge.
6) The bank shall be liable for any damages sustained by the pledger owing to its failure, in selling the pledge, to observe the relevant provisions of the Civil Procedure Code referred to in sub-Article (5) of this Article.”
2)    The following new sub-Articles (3), (4), (5) and (6) are added after sub-Article (2) of Article 3060.
“3) Notwithstanding the provisions of sub-Articles (1) and (2) of this Article, an agreement authorizing a lending bank to sell, by public auction, an immovable mortgaged to secure its loans, upon giving a prior notice of at least 30 days to the mortgagor and to transfer ownership of the immovable to the buyer shall be valid.
4) The sale of an immovable by the lending bank pursuant to sub-Article (3) of this Article shall be deemed executed by an authorized agent of the mortgagor.
5)  The provisions of Articles 394-449 shall, mutatis mutandis, be applicable while the bank is exercising its power to sell the mortgaged immovable.
6)  The bank shall be liable for any damages sustained by the mortgagor owing to its failure, in selling the immovable, to observe the relevant provisions of the Civil Procedure Code referred to in sub-Article (5) of this Article.”
3.    Effective Date
This Proclamation shall enter into force as of the 27th day of February, 1997.
Done at Addis Ababa, this 27th day of February, 1997.

NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA