August 2020

Decision of the Athens Court of First Instance on the Revocation of Notes on 9 Properties

The decision of the Athens Court of First Instance No. 119/2020 has been published, according to which our application for the revocation of mortgage liens on 9 properties of our client, on which the opposing bank had unilaterally registered a mortgage lien on the basis of a payment order issued. The Court held that the bank was sufficiently secured by the already consensually registered mortgages (which had been registered at the time the credit was obtained) and that there was no further risk that it was justified in unilaterally registering further mortgages unilaterally on the basis of the payment order issued. This was the case even though the loan agreement had been terminated and a payment order had been issued (the annulment of which is under appeal and awaiting judgment). A crucial element was the submission of detailed valuation reports of the properties in question. As the court ruled: 'Consequently, it is presumed that there was no imminent danger in order to register the new lien on the nine (9) additional properties after the issuance of the payment order and the application as regards the part of the revocation of the registered lien on them under the payment order must be dismissed pursuant to Article 724 para. 2 of the Civil Code must be upheld as well founded in substance...'.