Romania: LAW No. 83/1998 on Bankruptcy Proceedings for Banks

This law defines the bankruptcy proceedings for banks that have been set-up legally in Romania and are deemed insolvent. The Chamber of Deputies passed the law in its meeting held on 30th March, 1998 in compliance with the provisions of Art. 74, par (2) of the Constitution of Romania.

The document is divided into 5 chapters:

• Chapter I describes the general provisions. It mentions the conditions under which a bank is declared insolvent;
• Chapter II describes the main prerogatives of the bodies (usually court) applying the bankruptcy proceedings. These include:
  • Appointment of syndic and the liquidator and the supervision of their activities, therein;
  • Distribution of proceeds from liquidation;
  • Commencement and closure of bankruptcy proceedings;
  • Main duties of the syndic;
  • Rules and conditions for appeal against the measures taken by the syndic;
  • Powers of a liquidator.
• Chapter III defines the court notifying procedure;
• Chapter IV describes the responsibility of management and auditors of the banks in liquidation;
• Chapter V details the final and transitory provisions.