The so called marcian pact \u2012already known in common practice\u2012 has been officially regulated in Italy through the last law decree issued by the Italian Government (Law Decree 3 May 2016 no. 59).<\/p>\n
Now, through a simple notice, banks will become the owners of immovable properties provided as guarantee by the debtor.<\/p>\n
Let us see how it works. In Italy the marcian pact has always been known in practice and considered licit, even though not often used in relationships between creditor and debtor due to the lack of a specific regulation governing all the related legal aspects. Such gap has been filled by the recent intervention of the government.<\/p>\n
According to Law Decree 59\/2016 the bank and the borrowing business can enter into an agreement \u2012i.e. the marcian pact\u2012 which provides the transfer of ownership of the property given as a guarantee, if the debtor does not fulfil the undertaken commitments. Up to here nothing changes compared to past practice.<\/p>\n
The real news is the official regulation of the agreement, which is now an easier instrument which the banks may use instead of the old and well established ipoteca immobiliare <\/em>(i.e. hypothecation of immovable property). By entering the agreement, the bank will now be able \u2012instead of recording the hypothecation and selling the property through the judicial execution procedure provided by the law\u2012 to acquire ownership of the property through a simple notice to the debtor and, after having become owner, to sell the property without having to wait the lengthy procedures linked to the forced execution.<\/p>\n Therefore, once the marcian pact is entered into, if the debtor is in default, the bank will have to serve him a notice informing him it intends to avail itself of the pact, and after 60 days it will be able to ask the Court for the appointment of an expert for the sworn estimate of the property. The bank will have to inform the interested parties of the estimate and from that moment it will become the owner of the property, if the value of the building is lower than the debt. If the value is higher, the transfer of ownership will become final when the bank pays the debtor the difference between its claim and the value of the property.<\/p>\n