European Account Preservation Order

The European Parliament and the Council have adopted a new regulation Nr. 655/2014 of 15.05.2014 that establishes a European Account Preservation Order procedure to facilitate cross-border debt recovery in civil and commercial matters. The regulation is to be used from 18.01.2017.

 The regulation establishes a new specific type of interim injunction – the European Account Preservation Order (furthermore as “Preservation Order”). The aim of the Preservation Order is to prevent the subsequent enforcement of the creditor’s claim from being jeopardised through the transfer or withdrawal of funds held by the debtor or in the name of debtor in a bank account within the member states of the European Union. If issued, the bank shall preserve the amount and ensure that the amount will not be transferred or withdrawn from the account.

 The Preservation Order is available to creditors who have pecuniary claims in civil and commercial matters in cross-border cases, i.e. if the bank account is maintained in a Member State other than the Member State in which the creditor is domiciled or where the application for the Preservation Order was lodged. The application for a Preservation Order shall be lodged by the court; the creditor may lodge the Preservation Order even before he initiates the proceedings.

 The court shall issue the Preservation Order when the creditor has submitted sufficient evidence that there is an urgent need for a protective measure in the form of a Preservation Order because there is a real risk that, without such a measure, the subsequent enforcement of the creditor’s claim against the debtor will be impeded or made substantially more difficult.