On 16 February 2022, Decision no. 748 of the Romanian Constitutional Court on the unconstitutionality exception of the provisions within article 4, paragraph (3) of Law no. 297/2018 on Movable Property Publicity was published in the Official Gazette.
In accordance with the decision, the provision stating that: “The documents under private signature which, in accordance with the law, are validly concluded and constitute enforceable titles, can be executed only under the condition of registration in the National Register of Movable Property Publicity.” is unconstitutional.
The reasoning behind the decision consists of the following key-aspects:
(i) the provision does not comply with the principle of minimum interference with the creditor`s right to recover its receivable;
(ii) the provision imposes an unnecessary burden on the creditor while creating an inefficient and lengthy enforceability process;
(iii) the provision does not maintain a balance between the general interest and the creditor`s individual interest to recover its receivable;
(iv) the provision unjustifiably institutes a limitation on constitutional ownership rights.
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