How To Send A Proper Acceleration Notice To Initiate Execution Proceedings For Collateralized Banking Receivable?

According to Article 45 of the Enforcement and Bankruptcy Law (“EBL”), if a creditor has a security interest in a borrower or third party's assets (e.g., mortgage, pledge), that creditor shall first initiate special execution proceedings against the borrower, known as “Enforcement by Foreclosure of Collateral”.

Commencement of Enforcement by Foreclosure of Collateral and Bankruptcy Proceedings by Sending an Acceleration Notice

In order to begin the “Enforcement by Foreclosure of Collateral” under Article 150/ı of EBL for collateralized banking receivables, a bank should only submit a notarized copy to the Execution Office demonstrating that an acceleration notice for the outstanding amount of the credit has been served (or deemed to be served under Article 68/b of EBL) to the address of the borrower set forth in the loan agreement.