Execution for the enforcement of a monetary claim against the debtor can be carried out on all funds in their bank accounts.
An Execution Order on the monetary funds held in the debtor’s transaction account instructs the bank to transfer the specified monetary amount from the debtor’s transaction account to the transaction account of the execution creditor or their authorized representative. The execution for a monetary claim belonging to the creditor is determined by instructing the bank, through the execution order, to pay the specified monetary amount to the execution creditor or their authorized representative after the enforceability of the execution order.
If there are no funds in the account specified in the execution order, the bank will transfer the debtor’s funds in the corresponding amount from other accounts in that bank in favor of that account, according to the order specified by the execution creditor. If the bank fails to collect the entire enforceable claim due to the lack of funds in the account, it will keep the execution order in a separate record and execute the transfer when the funds arrive in the account, unless the execution order specifies otherwise.
Based on the judgment of the Cantonal Court in Sarajevo, case number 65 0 Ps 4250000 16 Pž 2 from September 8th, 2021, the defendant was ordered to pay the plaintiff:
- 3.911.660,00 KM with accrued statutory default interest from March 4, 2014, until payment;
- 3.324.911,00 KM with accrued statutory default interest from March 4, 2014, until payment;
- 1.733.645,76 KM with accrued statutory default interest from March 4, 2014, until payment;
- 211.052,46 KM with accrued statutory default interest from March 4, 2014, until payment, and to reimburse the plaintiff for the costs of the legal proceeding, in the amount of 24.184,40 KM.
Based on the mentioned judgment, the creditor filed a motion for execution, and the Municipal Court in Sarajevo issued an Execution Order on January 4th, 2022, in case number 65 0 Ip 938424 21 Ip.
As the debtor does not have sufficient funds in the account, the bank informed the Court that it cannot comply with the issued Execution Order due to insufficient funds. The bank has recorded the Execution Order in the legal order of payment priority and, in accordance with the provisions of the Law on Internal Payment Transactions of the Federation of Bosnia and Herzegovina, informed all other banks where the debtor has open accounts.
If you need advice on Blocking an Account in a Bank – Execution of a Claim on a Bank Account in Bosnia and Herzegovina, whether as an individual, a company, a shareholder, a director, or a founder, or if you need a lawyer for Corporate law for your company or business idea, then you are in the right place with us. You can contact our Corporate lawyers directly by phone (+387 62 342 463), via WhatsApp, Viber, or by email (rasid@haracic.ba).
