An executive proceeding is a short and privileged type of proceeding in which an outstanding debt appears as an accurate document, and this leads “instantly” to payment.
The first difference between the executive proceeding and ordinary proceedings comes from the very nature of both systems, as in ordinary proceedings it is disputed whether or not some amount of money or something is owing, and the sentence is passed as either in favour or against. It is a declaratory judgement. In an executive proceeding there is proof, by way of an accurate document , that an outstanding debt exists which leads on to “instant” payment.
Another difference is that in an ordinary proceeding the procedures can be very lengthy and in a summary proceeding they are quite brief.
An executive proceeding establishes that there is a debt to settle, and this debt is recorded in an exact document, recognized by law, which leads to an appropriate enforcement and “forcibly” to the payment of said debt.
The executive proceeding was established for the benefit of creditors, to enable them to recover their debts quickly and without them posing problems for their business. For this reason the executive proceeding is a preferential proceeding.
Civil Procedure Act Provision 517. Executive Action. Plaintiff’s Right of Execution.
1. Executive action will be based on an enforceable instrument
2. Only the following documents will be enforceable:
i) The final sentence ruling.
ii) The arbitral awards or resolutions.
iii) The judicial decisions which approve or validate judicial transactions and agreements reached throughout the process, accompanied, if necessary to prove its contents, by the corresponding testimonies of the actions.
iv) The public deeds, provided that they are the first copy. If it is the second copy then it is provided by virtue of a mandate and with the summons of the injured party, or the party at fault, or it is issued on behalf of both parties.
v) The commercial contract policies signed by the parties and by the collegiate broker that is involved in the case, provided that they have certification in which the broker confirms the policy with entries in his financial records and the relevant dates.
vi) Legitimately issued bearer or appointed bonds which represent the payments due and the outstanding coupons of the bonds, provided that the coupons match the bonds and that the bonds match the stock portfolio.
The claim of falsification of the bonds during the proceeding, if it proves true, will not hinder enforcement, notwithstanding subsequent appeal to the enforcement which the debtor can present, claiming falsification of the bonds.
vii) The un-expired certificates issued by the parties responsible for the accounting records, relating to the amounts shown in entries and which are referred to in the Securities Market Act, provided that it is accompanied by a copy of the public deed of the securities representation or, if the case may be, if such deed is necessary, of the issue which meets with current legislation.
Once the procedure has been carried out, the certificates referred to in the preceding paragraph will not expire.
viii) The court order which sets out the maximum amount that can be reclaimed as compensation, imposed in cases where the accused appeals, or in acquittals or dismissals of disciplinary cases initiated by events which are covered by Compulsory Third-Party Insurance derived from the use of motor vehicles.
ix) All other judicial verdicts and documents that, by order of this and other laws, are enforceable instruments.
By Jesus and Maria L de Castro
Translation and edition assistant: Rachael Harrison
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Grazalema by Isabel Tajes García at Facebook