Commercial Code of Mexico - Book Five - Third Title - Trials of the Executive

COMERCIAL CODE OF MEXICO

BOOK FIVE

THIRD TITLE

Trials of the Executive

Article 1391.- The executive procedure takes place when the petition was based on document entailing execution.

Has coincided with implementation:

I. The final sentence or passed on res judicata and arbitration is final, pursuant to Article 1346, observing the provisions of the 1348;

II. Public instruments, as well as testimonies and certified copies of the same issued by the notary public;

III. The judicial confession of the debtor, according to art. 1288;

IV. The credits;

V. Insurance policies under the law of matter;

VI. The decision of the experts appointed in insurance to fix the amount of the claim, observing the requirements of law on the subject;

VII. Invoices, accounts and any other trade agreements signed and legally recognized by the debtor, and

VIII. Other documents that provision of the law have the character of executive or which by their nature bring with them running.

Article 1392.- Presented by actor accompanied his claim enforceable car will be provided with effect from command as to whether the debtor is required to pay and is not doing enough to seize assets to cover the debt, costs and expenses, putting under the responsibility of the creditor, in trust person appointed by it.

Article 1393.- Not finding a debtor to search the property first noted by the actor, but satisfied to be the home of the former, he will subpoena fijándole business hours within a period between six and seventy-two hours, and if not waiting, they will perform due diligence of attachment to relatives, employees or household of the applicant, or any other person living at the address following the rules of the Federal Code of Civil Procedure regarding foreclosures.

Article 1394.- But the diligence will start with the payment to the debtor, his representative or the person who understands, listed in the preceding article of not getting payment, require the defendant, his representative or the person who understands the proceedings, to bring enough assets to guarantee the performance claimed, warning that otherwise the goods will go right to point to the actor. Then the defendant will be located.

In all cases, the defendant will be given card that are contained in the attachment order was decreed against him, leaving a copy of the inquiry, been served with a copy of complaint in the basic documents of the action and others are sorted by Article 1061.

The diligence of attachment shall not be suspended for any reason, it will be carried out to completion, leaving the debtor his rights except to assert that as desired during the trial.

The judge, in no case, suspend its jurisdiction to make to resolve all matters relating to the seizure, its registration in the corresponding Public Registry, replevin, accountability by the depositary for administration expenses and other urgent measures, provisional or otherwise, regarding the above.

Article 1395.- The garnishment will continue this order:

I. Goods;

II. Loans of easy and early payment to the satisfaction of the creditor;

III. Other furniture of the debtor;

IV. Properties;

V. Other shares and rights to have the defendant.

Any difficulties raised in order to be followed, shall not prevent the seizure. The executor of pave, wisely preferring to create more realizable except as determined by the judge.

In the case of seizure of property, at the request of the plaintiff, the court shall require that the defendant exhibited the contract or contracts entered into before the transfer involving the use or possession thereof to third parties. We only accept contracts that comply with all applicable legal and administrative requirements.

Once locked on, however, the debtor can not alter in any way the property attached, or contracts involving the use of it without prior permission of the judge, deciding who should seek the opinion of the performer. But that is the registered, any transfer of rights to the property on which you have not locked in any way alter the legal status of the data in relation to the right, if any, corresponds to attaching to obtain payment of your credit with the proceeds of auction of such property, right to take against the third to the same extent and under the same terms surtiría against the garnishee, if he had not operated transmission.

Commits the crime of disobedience to forward the executed use of the property attached without prior judicial authorization.

Section 1396 .- Made, however, continuous act notified to the debtor or the person who has practiced diligently to make within a period of eight days, which is calculated in terms of section 1075 of this Code, the debtor appear in court to trowel to pay the amount claimed and costs, or that hath objecting to it.

Article 1397.- In the case of sentence, shall be permitted except that the execution of payment if requested within one hundred eighty days, if that term has passed, but no more than a year, also admitted the trading, clearing and commitment referees, and after more than a year, will be eligible for renewal also, included in this waiting, removes the covenant not to ask and any other agreement that modifies the obligation, and of forgery of instrument, if the implementation are not required under enforceable agreement or trial constant cars. All these exceptions, no understanding of falsehood, must be after the decision, agreement or trial, and recorded a public instrument, by legally recognized document or judicial confession.

Article 1398.- The terms set forth in the preceding article, shall be counted from the date of the award or agreement, unless they are fixed in time for the fulfillment of the obligation, in which case the term is counted from the day he won the period or since the last provision could be required due, in the case of periodic benefits.

Article 1399. Within eight days following the demand of payment, but in your case, and the location, the defendant must answer the complaint, referring specifically to each fact, opposing only exceptions allowed by law in Article 1403 of the Code and credits in the case of the Article 8 of the General Law on Negotiable Instruments and Credit Operations, and provide the same written tests related to the facts and accompanying documents required by law for exceptions.

Article 1400.- If the defendant fails to comply with the provisions of section 1061 of this ordinance regarding the documentary that blends its exceptions, the judge will admit, except those that are supervenient.

Where the defendant has exhibited the respective documentary or complied with Article 1061 which orders of this ordinance shall be taken by opposing the exceptions permitted by law, with which the actor will be seen for three days to manifest and provide evidence that his rights.

Article 1401.- In the statement of claim, defense and relief of view of this, the parties offered their evidence, relating to the issues in dispute, providing the name and address of witnesses who have mentioned in the writings mentioned at the beginning of this article, as well as those of their experts, and the kind of expert concerned with the questionnaire to be resolved, and all the other evidence permitted by law.

If the witnesses have not been mentioned with their names written in fixing the litigation, the judge may not admit even offered by the parties subsequently imported unless a supervening exception.

Upon conclusion of the hearing or after the deadline for doing so, the judge allowed the evidence to prepare and send to proceed in accordance with the Code of Civil Procedure, opening the evidentiary trial, for up to fifteen days, within which shall take all necessary steps for relief, stating the dates required for reception.

Tests received after the period allowed by the judge, or extension if any declared, will be under the responsibility, who, however, may send them to conclude a single audience indifference to be held within ten days.

Article 1402.- In the case of bills of lading, which shall address to art. 583.

Article 1403.- Against any other commercial document entailing execution are acceptable except:

I. Misrepresentation of the contract title or content therein;

II. Force or fear;

III. Limitation or revocation of the title;

IV. Absence of the performer, or recognition of the signature of the debtor, in cases where such recognition is necessary;

V. Lack of judge;

VI. Payment or compensation;

VII. Remission or removed;

VIII. Offer not to collect or hold.

IX. Novation of contract;

Exceptions included from Section IV to IX shall be admissible in court only executive in if foundations with documentary evidence.

Article 1404.- In the executive proceedings incidents not suspend the procedure and will be processed regardless of their nature with each part written and will have three days to issue resolution. If testing is promoted should be offered in the respective writings, setting the points to be seen, citing indifference for hearing within a period of eight days of receipt, is briefly heard the allegations, and it is dictated corresponding decision to be notified to the parties to the act, or no later than tomorrow.

Article 1405.- If the debtor allanare demand and term sought grace for the payment of the claim, the judge will view the actor so that, within three days he expresses to his rights, the judge must resolve in accordance with such propositions party.

Article 1406.- Once the eight test period is passed to the allegations, which shall be two calendar days for the parties.

Article 1407.- Presented the allegations or the lapse to do so, having been given notice and within a period of eight days, will decide the sentence.

Article 1407 bis. To handle appeals in respect of Judgement referred to in this chapter, the general rules will be provided under this Code.

I. (Repealed).

II. (Repealed).

III. (Repealed).

IV. (Repealed).

V. (Repealed).

Article 1408.- If the sentence is declared to be no room for trance and auction of properties seized and pay the creditor in the same sentence will also decide on the rights issue.

Article 1409.- If the statement declared that the trial proceeds executive, actor rights reserved for the exercise in the manner and form required.

Article 1410.- A sentence under the auction, will proceed to sell the property seized, prior assessment made by two riders and experts and a third in case of disagreement, those appointed by the parties and this by the judge.

Article 1411.- Presented valuation and the parties notified the court that happen to prevail in that will be announced in the legal form of the sale of assets, three times within three days if they were furniture, and within nine if they were roots, then finished off at public auction to the highest bidder and according to law.

Article 1412.- No bidder having submitted the property, the creditor can ask them for the award for auction price will be fixed in the latest auction.

Article 1412 Bis.- When the liquid amount of the sentence is greater than the value of the seized property, previously valued in terms of section 1410 of this Code, and the certificate of taxes not contained other creditors, the executor may choose to direct allocation of goods that he has in his favor at the value set in the appraisal.

Article 1412 Bis 1.- In the case of the auction and award of property, the judge and the winner, without further ado, the public deed granted before a notary public.

Article 1413.- The parties at trial, may agree that the goods seized are valued or sold in the form and terms they agree upon, and promptly reporting it to the court by a writing signed by them.

Article 1414 .- Any incident or matter arising in the Trials Commercial Executive will be resolved by the judge with support in the respective provisions of this title, and failing that, with regard to the incidents in the ordinary commercial trial, and in the absence of one or another to provisions in the Federal Code of Civil Procedure, or failing that the procedural law of the corresponding federal entity, seeking greater equity between the parties without prejudice to any of them.

A THIRD TITLE

Procedures for Implementation of the pledge without

transfer of possession and the Guarantee Trust

CHAPTER I

Extrajudicial Execution procedure of a guarantee given

by pledge without transfer of possession and Guarantee Trust

Article 1414 bis.- This road will be processed the payment of overdue loans and obtaining possession of the property subject to the assurances given by pledge without transfer of possession or guarantee trust, provided there are no disputes as to the enforceability of credit, amount claimed and the delivery of possession of such goods. For purposes of the above, the value of property may be determined by any of the following:

I. In the opinion rendered by the expert designated by the Parties for this purpose from the contract or thereafter, or

II. For any other procedure agreed by the parties in writing.

By concluding the contract the parties must establish the basis to designate an authorized person, other than the creditor, to conduct an appraisal of the property, if it can not be done in terms of the provisions of fractions this article.

Article 1414 bis 1.- The procedure starts with the formal requirement of delivery of possession of property, to make the debtor the trustee or the lienholder, as applicable, by notary public.

Once delivered possession of the property to the trustee or secured creditor, it shall be considered as sequestrator to not perform as anticipated in Article 1414 bis 4.

Article 1414 bis 2.- It will close the court procedure and will expedite the judicial process in the following cases:

I. When the debtor objects to the physical delivery of goods or payment of the claim, or

II. When there has been the agreement referred to in Article 1414 bis or it is impossible to fulfill.

Article 1414 bis 3.- Apart from the cases provided for in the preceding article, the trustee or the lienholder may obtain possession of the goods under the warranty, if it was expressly stipulated in the contract. This act must take place before a notary public, who must raise the corresponding record, as well as detailed inventory of the property.

Article 1414 bis 4.- Once delivered possession of the goods shall be the disposition of these, in terms of article 17 bis 1414, section II.

Article 1414 bis 5.- If the trustee or the lienholder, as applicable, can not obtain possession of the goods, the procedure for enforcement referred to the next chapter of this Code.

Article 1414 bis 6.- No need to be exhausted the procedure referred to in previous articles, to initiate the enforcement procedure provided for in the next chapter.

CHAPTER II

Judicial Procedure Execution Guarantees Granted by Pledge without Transfer of Ownership and Guaranty Trust

Article 1414 bis 7.- Be processed in accordance with this procedure any trial is intended to pay a credit certain, and enforceable and obtaining physical possession of the property to guarantee it, if the security has been granted by pledge without transfer of possession or by collateral trust that has not been agreed upon by the procedure laid down in Article 403 of the General Law on Negotiable Instruments and Credit Operations.

For the trial continue according to the provisions of this Chapter, it is essential that the aforementioned credit recorded in a public document or private document, as appropriate, in terms of the General Law on Negotiable Instruments and Credit Operations and payable at agreed terms or in accordance with applicable laws.

Article 1414 bis 8.- Submission application, accompanied by the relevant contract and the determination of the balance made by the creditor and the creditor is a lender, attaching the appropriate balance certification, the court under its strict liability, if you find that meet the requirements set forth in the preceding article, within a period not exceeding two days, admit it and issue a writ order effects in the form to the payer is required to pay and failure to do so, the debtor, the depositary or who holds the office, to hand in material possession the actor or his designee, of the goods under the warranty stated in the contract. In the latter case, the creditor or his designee, shall be considered as sequestrator and inform the judge about the place where the goods that remain have been delivered, while not sold.

In the same car in which payment is required for the debtor, the judge shall summon to court, if they pay or do not deliver the material possession of the collateral to the creditor, so that within a period of five days as opposed to happen to answer, if any, exceptions listed in Article 1414 bis 10.

The aforementioned balance determination may be made from the last statement that, if the debtor has received and accepted, as long as it has been agreed, or the creditor is bound by law to deliver available statements to debtor. Means that the debtor has received and accepted this last statement, if not objected in writing within 10 working days of receiving it or make partial payments to the creditor after receiving it.

Article 1414 bis 9.- The diligence referred to in the preceding article, shall not be suspended for any reason and will be until their completion, leaving the debtor his rights except to assert that as desired during the trial. To put in possession of material goods to the plaintiff, the judge warning in the debtor with fine which may be from three to four times the daily minimum wage in force in the Federal District. For the imposition of that penalty, the judge must consider the amount of security sought.

If the debtor fails to make delivery of goods in the proceedings under this article, the secretary-clerk shall so certify and shall report thereon to the judge, who shall give effect to the pressure medium dictate the measures decreed and conducive to achieve compliance of resolution in terms of this Chapter, the effect may use the following coercive measures:

I. The assistance of the police, and

II. If it is ineffective because the pressure attributable to the debtor, the judge may order the administrative detention against it, up to 36 hours.

If the guarantee falls on a house, used as such by the defendant, he shall be appointed custodian of it until the statement, provided to accept such request. Where under the sentence, proceed to the defendant delivered to plaintiff the material possession of the property, the judge will realize the urgency medium dictate the measures decreed and conducive to achieve compliance with the sentence, in line with the provisions of this article.

Article 1414 bis 10.- The defendant may raise the exceptions to their rights, but the procedure is subject to the following rules:

I. It shall not be opposing the exceptions that prove with documentary evidence, except those which by their nature require the offer and presentation of evidence other than documentary;

II. If the objection of lack of personality of the actor and states from the judge granted no later than ten days to correct any deficiencies that part of the submission, if remedied, will have an equal right to the defendant, if challenged the personality of its representative. If not remedied the actor, the judge immediately dismiss the trial, and if not remedied to the defendant, the trial will continue in his absence.

III. If they object consisting of exceptions that the defendant has not signed the document of the action or founded on falsehood thereof be declared inadmissible at sentencing, when it is established that the debtor made partial payments of the credit charge, or However, it has maintained possession of the property acquired with proceeds of credit. The foregoing is without prejudice to the inappropriateness of these exceptions result from different cause;

IV. If you oppose the lis pendens only be accepted when displayed with the answer, the stamped copies of the demand and the answer to this or summons the pending trial, and

V. If the objection of illegality or error in the way the judge will warn the actor to a term not exceeding three working days, correct it.

The judge, under the strictest responsibility, review the answer to the complaint and dismiss out of hand all exceptions patently inadmissible or those for which no documentary evidence or exhibits not offered evidence directly relevant to accreditation.

Article 1414 bis 11.- The raid that affects the entire demand produce the effect that the matter proceed to final decision.

The respondent does not reply even when time demand will always have the right to offer evidence, even before the pronouncement of judgments, and only once.

Article 1414 bis 12.- Both the demand and in response thereto, the parties have the obligation to be clear and precise. In these same letters should provide all evidence relating to events that seek to test and submit all relevant documents, except as provided in the second paragraph of the preceding article.

Article 1414 bis 13.- Whenever tests are offered against morality or law, or not complying with the provisions of Articles 1414 and 1414 bis 11 bis 12, or refer to events impossible, implausible or not notoriously disputed by the parties, the judge the short shrift.

Article 1414 bis 14.- The judge shall rule on the admission or disposal of evidence in the car which has answered or not the demand. In the same order, the judge will view the actor with the objections by the defendant for a period of three days and indicate date and time for holding the evidentiary hearing and sentencing allegations. This hearing must be held within ten days after the date on which it ended the period for the actor to work off the view referred to in this article.

Article 1414 bis 15.- The test preparation will be the responsibility of the parties, so it must call witnesses, experts, public and private documents, contract positions and other tests which have been admitted.

When the parties have to give evidence or expert testimony to prove any fact should be offered in the statement of claim or defense, pointing to the name of their witnesses and their experts, if necessary, copy and display the tenor of the questioning of which must be examined witnesses or expert questionnaire.

The judge ordered that a copy is delivered to each of the parties to the hearing to verify the cross-examination in writing or verbally.

The test of visual inspection should be provided with equal opportunity as above.

By promoting the expert evidence, the judge shall make the appointment of an expert, or deemed appropriate to the practice of diligence, without prejudice to each party may also appoint an expert to be associated with the appointed by the judge or give up separate opinion. Expert evidence will be graded by the judge as prudent estimate.

If you call a witness or requested a document that has been admitted as evidence, it is not for reasons attributable to vent bidder at the latest at the hearing shall be declared void, unless there is a force majeure is duly established.

Article 1414 bis 16.- The judge must preside over the hearing, order the sufficiency of the evidence taken and prepared, and give opportunity to the parties to argue what is his rights in writing or verbally, without car seat it in the latter. Thereupon, the judge ruled, which may be appealed only on devolution effect.

Article 1414 bis 17.- Retrieved appraised value of property in accordance with the provisions of Article 1414 bis, it will be as follows:

I. When the value of assets equal to the amount of the debt convicted, will be liquidated entirely proper credit, therefore do not reflect the action or right to the plaintiffs to exercise or enforce subsequently against the defendant, with respect to contract basis for action. In this case, the creditor or the trustee, as appropriate, may freely dispose of the goods under the warranty;

II. When the value of the assets is less than the amount of the debt convicted, the creditor or trustee, as appropriate, may dispose of the goods under the warranty and retain the right actions that it is concerned, the difference that has not been cover, as established by applicable laws.

Exempted from the provisions above, the housing loans for an amount less than 100,000 Investment Units (UDI), provided you have paid at least 50% of the unpaid balance of the loan. In this case the value of the collateral, discounted to IDUs, liable for the remainder of credit, without responding accordingly any right action or other assets, securities or rights that have not been given a guarantee to the plaintiffs to exercise or enforce subsequently against the debtor with respect to the contract-based action.

In no event and under no way you can waive this right;

III. When the value of the assets is greater than the amount of the debt convicted, the creditor or the trustee, as the case and after deducting the credit, interest and expenses incurred, will give the debtor the balance corresponding to the sale of property.

The sale to the creditor or trustee election may be made before the judge hearing the trial or a notary public, by doing the following:

a) Be personally notified the debtor, as stated in Book Five, Chapter IV of Title I of the Code, the date and time that made the sale of goods referred to the next section. Such notice shall be taken five days before the date of sale;

b) Be published in a local newspaper in which the goods are at least five working days in advance, a notice of sale thereof, which point to the place, date and time it seeks to make the sale , noting the description of the property and the sale price, determined pursuant to Article 1414 Bis.

The publication dates will be noted to be performed, if necessary, successive bids for the sale of goods. Each week that has not been possible sale of assets, the minimum value of sale thereof, shall be reduced by 10%, the creditor may, at its option, obtain full ownership of them when the price of these goods is in any of the cases referred to in Sections I and II of this article.

A debtor who wishes to be made more publications relating to the sale of property may do so directly at their expense, and

c) Once the sale of the property if the sale price thereof exceeds the amount of the debt, the creditor shall deliver the balance corresponding to the debtor not later than five days, once the amount has been deducted of credit, including interest and other expenses incurred in the sale in cash, by cashier's check or deposit ticket to the obligor through the notary.

Article 1414 bis 18.- In case of violation of the plaintiff as stated in Section III, subsection c) of the preceding article, the judge will give him a warning to the coercive measures provided for in Article 1414 bis 9, and ordered to pay a penalty equivalent to one hundred and up to three thousand times the current general minimum daily wage in Mexico City at the time of failure by days elapsed, as long as the default.

Article 1414 bis 19.- The creditor or trustee, pending the debtor to make delivery of the remaining resources as appropriate in terms of Article 17 Bis 1414, Section III, the sale of the goods under the warranty will cover it, all the time duration of the breach, an interest rate equal to twice the cost of borrowings denominated in national currency (CCP), which discloses month the Bank of Mexico, by publication in the Official Journal of the Federation.

Article 1414 bis 20.- The procedures that are aired as stated in this Chapter, shall not be accepted incidents and resolutions issued may be appealed only returned effect, so that in no case the procedure may be suspended, except as provided in the last paragraph Article 1414 bis 10.

In all cases not provided for in this Chapter shall apply the provisions of Title III of Book V of this Code.