Title Sixth: Distribution of Proceeds

Article 990

If the property sold is of those assets for which rights are registered in a special register, the execution officer must, after the sale and payment of the price, apply to the competent administration for the transfer of ownership or the modification of the registration on that register.

Article 991

If the price obtained from the sale of the seized assets is sufficient to pay the expenses and all debts owed to the seizure claimants, the co-seizure claimants, the registered creditors whose names are recorded, and the privileged creditors who have declared themselves to the enforcement authority prior to the sale, the enforcement officer must pay to each of them their established right within a maximum period of ten days from the date of the sale and payment of the price, with regard to assets whose related rights are not registered in a special register, from the date of presentation of the certificate mentioned in Article 990, and with regard to the remaining assets, he shall hand over a check to the treasury or the bank where the money was deposited and deliver the remainder to the debtor. Only the creditors mentioned in the previous paragraph shall participate in the distribution process.

Article 992

If the price is insufficient to satisfy the claims in the manner set forth in the previous article, the execution division shall send within five days from the date of the sale and payment of the price or from the date fixed for payment a statement to the debtor and to the seizing creditors and those participating in the seizure indicating their debts, the amounts of the distributions made and the remaining balance if any.

Article 993

Once the distribution project is drawn up, the enforcement officer summons the concerned parties, including the debtor, to appear before him, by means of a notification document or a registered letter with acknowledgement of receipt, and this summons must reach them at least three days before the scheduled date. He then presents his project to them, and if they approve it, it becomes final. If they approve of part of it, a partial agreement is concluded and is immediately executed for the benefit of those who benefit from it. If one of them rejects it, the case is referred to the head of the enforcement department to consider it within five days of the summons to the executor and the creditors in the manner and within the time limit specified above. If the objection is rejected and the objector is found to be acting in bad faith, he may be liable to claim before the competent authority for delay interest as compensation and for the fine prescribed in Article 11 of this Law.

Article 994

The failure of one of the creditors to appear before the execution officer does not prevent an amicable settlement unless it does not assure the payment of his right in full. In this case the default is considered as a refusal.

Article 995

After the President of the Execution Department has heard the statements of the debtor and the creditors, he shall approve the final schedule and allocate to each of them the amount due. His decision shall be subject to appeal within a period of five days from the date of its issuance, and the appeal decision shall not be subject to a request for cassation. The distribution decision shall not be executed unless it has become final.

Article 996

The President of the Execution Department may administratively combine in one distribution procedure the amounts resulting from seizures made on a set of properties of the debtor, while taking into account the rights accruing to the creditors in relation to each property.