Bankruptcy Act

TITLE II MORATORIUM ON PAYMENT

Chapter 1 Granted Moratorium on Payment and its Effects

Article 214 Request for a moratorium on payment
- 1. The debtor who expects that he will be unable to continue the payment (performance) of his debts, may request the District Court to grant on his behalf a moratorium on payment.
- 2. He must address himself for this purpose by means of a petition to the District Court designated in Article 2, submitting at the same time a list as referred to in Article 96 (list of assets and liabilities and of the creditors and their claims), added with documents to confirm (verify) the content of that list; the petition must be signed by the petitioner and by an advocate (solicitor admitted to the Bar). The petition must contain such information that the court is able to determine whether it has jurisdiction on the basis of the European Regulation mentioned in Article 5, paragraph 3.
- 3. A draft for a final arrangement with the creditors (composition) may be added to the petition.
- 4. No moratorium on payment will be granted on behalf of a natural person who does not conduct a professional practice of business for his own account, nor on behalf of a credit institution as meant in Article 212g, paragraph 1, under (a), or an insurer as meant in Article 213.

Article 215 Provisional moratorium; hearing for the granting of a definitive moratorium
- 1. The petition, added with the relevant documents, shall be deposited at the office of the clerk of the District Court for public inspection free of charge.
- 2. The District Court shall immediately grant the requested moratorium provisionally and appoint one or more legal administrators who will administer, together with the debtor, the debtor’s affairs. Furthermore, the District Court shall order that all known creditors, in addition to the debtor, shall be called in writing by the clerk of the court to appear on a specific day in court, which day is to be set by the District Court at short notice, this in order to be heard about the debtor’s request, before a decision on the granting of a definitive moratorium on payment is taken. Besides the day, also the hour and place shall be mentioned in that writing as well as whether or not a draft for a final arrangement with the creditors (composition) has been added to the petition. Article 6, paragraph 4, shall apply accordingly.

Article 216 Publication of data regarding the petition in the Government Gazette
The clerk of the District Court shall ensure that the following information is published immediately in the Government Gazette: the lodging of the petition for a moratorium on payment, the provisional granting of the moratorium on payment as to the exact minute thereof, the name of the magistrate in bankruptcy ('rechter-commissaris'), if one is appointed, the names and addresses of the appointed administrators and the date set in accordance with paragraph 2 of the preceding Article. If a draft for a final arrangement with the creditors (composition) was lodged simultaneously with the petition, this shall be mentioned in the announcement too.

Article 217 Day on which the moratorium takes effect
The moratorium on payment is deemed to have taken effect from the beginning of the day on which it was provisionally granted.

Article 218 Hearing of the request for a moratorium in payment
- 1. On the set date, the District Court shall hear in chambers: the debtor, the magistrate ('rechter-commissaris'), if one is appointed, the administrators and the creditors present either in person or through a representative authorized by written procuration (power of attorney) or through an advocate (solicitor admitted to the Bar). A creditor is allowed to attend the hearing even if he has not been called to appear in court.
- 2. The District Court may grant a definitive moratorium on payment on behalf of the debtor unless an opposition against it is made known either by creditors holding not less than one-quarter of the total amount of the claims represented at the hearing as meant in Article 233 or by more than one-third of the creditors holding such claims.
- 3. The District Court shall decide who is eligible to vote in the event of a dispute on this matter.
- 4. A moratorium may never be granted definitely if there are good reasons to fear that the debtor will try to harm the interests of the creditors during the moratorium or if it is not to be expected that the debtor will be able to satisfy his creditors in due course.
- 5. If the District Court rejects the petition it may declare the debtor bankrupt in the same court order. If a bankruptcy order is not rendered, the provisional moratorium on payment shall be maintained until the court order in which a definite moratorium is rejected, has become final and binding.
- 6. If a request for a bankruptcy order and a request for the granting of a moratorium on payment are pending at the same time, this last request shall be heard first.
- 7. The court order rendered on a request shall be fully reasoned and shall be pronounced in open court.

Article 219 Appeal against a decision on a request for a moratorium on payment
- 1. If the request for a moratorium on payment is rejected, the debtor has a right to lodge an appeal against this decision within eight days following the date of the involved judgment; if the request for a moratorium on payment is granted, any creditor who has not stated to be in favour of the request, has the right to lodge an appeal against this decision within eight days following the date of the involved judgment.
- 2. Such an appeal shall be made by petition lodged with the office of the clerk of the Court of Appeal which must be seized to hear the matter. The presiding judge shall immediately set the date and time of the hearing.
- 3. If the appeal is made by a creditor, he shall, no later than the fourth day following the lodging of his petition, notify, by means of a bailiff's writ, the advocate (solicitor admitted to the Bar) who lodged the petition for a moratorium on payment of the appeal and of the time set for the hearing. This notification constitutes a summons on the debtor to appear.
- 4. The clerk of the Court of Appeal shall ensure publication of the appeal and of the time set for the hearing in the Government Gazette. He shall also notify the appeal to the office of the clerk of the District Court and collect from him the documents referred to in Article 214, and make these available for public inspection at his office free of charge.

Article 220 Appeal hearing
- 1. At the appeal hearing the request (petition) for a moratorium on payment shall not be re-submitted to be voted on, but each creditor may participate, either in person or through a representative authorized by written procuration (power of attorney) or through an advocate (solicitor admitted to the Bar), in opposing or supporting the judgment under appeal.
- 2. The hearing shall take place in chambers; the judgment shall be pronounced in open court.

Article 221 Appeal in cassation
- 1. If the request for a moratorium on payment is rejected by the Court of Appeal, the debtor may lodge an appeal in cassation (appeal to the Supreme Court) against this decision within eight days following the date of the involved judgment; if the request for a moratorium on payment is granted by the Court of Appeal, any creditor who has not stated to be in favour of the request, has the right to lodge an appeal against this decision within eight days following the date of the involved judgment.
- 2. Such an appeal in cassation shall be made by a petition lodged with the office of the clerk of the Supreme Court. The presiding judge of the Supreme Court shall immediately set the date and time of the hearing.
- 3. The clerk of the Supreme Court shall ensure publication of the appeal in cassation and of the time set for the hearing in the Government Gazette. He shall also notify the clerk of the Court of Appeal of the appeal in cassation, and collect from him the documents referred to in Article 214 and make these available in his office for public inspection free of charge.
- 4. The provisions of Article 219, paragraph 3, and Article 220, paragraph 2, apply accordingly.

Article 222 Immediately enforceable court order
- 1. The court order in which a moratorium on payment has been granted definitively shall be enforceable immediately notwithstanding any appeal or remedy (action) sought against it.
- 2. It shall be announced in the manner provided for in Article 216.

Article 222a Publication in the moratorium registers of the District Court
- 1. The clerk of each District Court shall keep a public register in which he registers, for each moratorium on payment separately, the following data in the following sequence, with mention of the date of registration:
1° an extract from the court decisions in which a moratorium on payment is granted, either provisionally or definitely, or in which such a moratorium has been extended or terminated;
2° the appointment of the magistrate ('rechter-commissaris');
3° the brief content of the final arrangement (composition) with creditors and, if appropriate, its sanctioning (approval) by the court;
4° the rescission of the final arrangement (composition) with creditors.
- 2. The structure and content of the register shall be regulated by Order in Council.
- 3. The clerk of the court must permit public inspection of the register at no cost and provide an extract from the register against payment.
- 4. On behalf of the central register referred to in Article 222a, the clerk of the court shall sent the data meant in paragraph 1 under point (1°) up to and including point (4°) to the Minister of Justice or to the body designated for this purpose by Order in Council.

Article 222b Central register
- 1. A central register is kept by the Minister of Justice or, where pursuant to Article 222a, paragraph 4, another body has been designated for this purpose, by that body, in which the data mentioned in Article 222a, paragraph 1, under point (1°) up to and including point (4°), shall be registered.
- 2. Further provisions regarding the structure and content of that register shall be regulated by Order in Council.
- 3. Everyone may inspect the central register free of charge and may obtain extracts from it against payment.

Article 223 Duration of a definitely granted moratorium; extension of a moratorium
- 1. When a moratorium on payment is granted definitely, the District Court shall set its duration at one and a half year at most. If the moratorium on payment has ended on expiry of the period for which it was granted, the administrators shall ensure that a publication thereof is made in the Government Gazette.
- 2. Prior to the end of the moratorium on payment the debtor may, once or more times, request for its extension, each time for no more than one and a half year. The request (petition) shall be heard in the same manner as a request (petition) for a moratorium on payment. If on the expiry of an applicable moratorium on payment no decision is made on a request (petition) for its extension, the moratorium shall be maintained. The court order issued by the District Court shall be published in the manner provided for in paragraph 1.

Article 223a Appointment of one or more magistrates
The District Court may appoint from its members one or more magistrates ('rechter-commissarissen') when the moratorium on payment is granted provisionally or by means of a later court order, in order to advise the administrators upon their request.

Article 223b Hearing of witnesses; experts’ investigation
- 1. At the request of the administrators, the magistrate ('rechter-commissaris') may hear witnesses or order an experts' investigation to clarify the circumstances concerning the moratorium on payment. The witnesses shall be summoned by writ in the name of the magistrate ('rechter-commissaris'). Article 177 of the Code of Civil Procedure shall apply accordingly.
- 2. Articles 171, 172, 173, paragraph 1, first sentence, paragraph 2 and 3, 174 and 175 of the Code of Civil Procedure shall apply to a non-appearance and to a refusal to take the oath or to testify.
- 3. The spouse or former spouse of the debtor or the person with whom the debtor has or had a registered partnership as well as the children and more remote descendants and the parents and grandparents of the debtor may invoke their right to refuse to testify.

Article 224 Two or more appointed administrators; dismissal of an administrator
- 1. If more than one administrator has been appointed, then the appointed administrators can only validly perform acts with the consent of the majority of the administrators or, in the event that the votes are equally divided, with authorization of the magistrate ('rechter-commissaris'), if one is appointed, or otherwise with the authorization of the provisional relief judge of the District Court. Article 70, paragraph 2, shall apply accordingly..
- 2. The court may dismiss an administrator at any time after he has been heard or properly summoned, and replace him by someone else or appoint one or more additional administrators, in each case either upon his own request or upon the request of the other administrators or of one or more creditors or upon the recommendation of the magistrate ('rechter-commissaris') or of the court's own motion.

Article 225 Additional conditions to protect the interests of creditors
- 1. When the District Courts grants a provisional moratorium on payment, it may do so under such conditions as it regards necessary to safeguard the interests of the creditors.
- 2. Also during the moratorium on payment the District Court may set further conditions as meant in the previous paragraph, either upon the recommendation of the magistrate ('rechter-commissaris'), if one is appointed, or upon the request of an administrators or of one or more creditors or of the court's own motion.

Article 226 Appointment of one or more experts
- 1. When the District Courts grants a provisional moratorium on payment, it may appoint one or more experts in order to investigate the state of affairs of the estate (property) of the debtor and in order to submit a reasoned report of their findings within a period to be specified by the District Court, which may, if necessary, be extended. The last paragraph of Article 225 shall apply accordingly.
- 2. The experts' report shall contain a fully reasoned opinion on the reliability of the statement and documents submitted by the debtor and whether it is to be anticipated that the debtor will be able to satisfy his creditors in due course. The report shall indicate, if possible, the measures which must be taken to achieve such settlement.
- 3. The experts shall lodge their report at the office of the clerk of the court for public inspection free of charge. No charge shall be made for the lodging of the report.
- 4. The final paragraph of Article 224 shall apply accordingly to the experts.

Article 227 Reports to be lodged regularly by the administrator
- 1. Each time when a period of three months has passed, the administrators must issue a report on the state of affairs of the estate (property) of the debtor. This report shall be dealt with as provided for in Article 226, paragraph 3.
- 2. The period referred to in the preceding paragraph may be extended by the magistrate ('rechter-commissaris'), if one is appointed, or otherwise, by the District Court.

Article 228 Right of administration and of disposition; obligations arisen during the moratorium
- 1. During the moratorium on payment, the debtor may not perform any act of administration or disposition relating to his estate (property) without the cooperation, authorisation or assistance of the administrators. If the debtor is in breach of this obligation, then the administrators shall be empowered to do whatever is necessary to ensure that the estate (property) of the debtor will not suffer any loss on account thereof.
- 2. The estate (property) of the debtor shall not be liable for obligations which the debtor entered into after the start of the moratorium on payment without the cooperation, authorisation or assistance of the administrators, except to the extent that the estate (property) benefits from such obligations.

Article 229 Marital community of property
- 1. If a debtor is married under any community of property or has entered into a registered partnership under any community of property, the estate (property) of the debtor shall include all assets and liabilities of that community.
- 2. Article 61 shall apply accordingly.

Article 230 Debtor cannot be forced to make payments during the moratorium; ending of foreclosures and attachments
- 1. During the moratorium on payment, the debtor cannot be (legally) forced to pay the debts referred to in Article 233, and any foreclosure (sale under execution) in order to recover such debts shall be suspended.
- 2. As soon as the court order in which a moratorium on payment is definitely granted or in which a final arrangement (composition) with the creditors is sanctioned (approved), has become final and binding, all levied attachments (seizures) shall end, and the debtor who is held in custody (detention) shall be released, always unless the District Court had already set an earlier date for this to happen. Upon the request of the administrators, the magistrate ('rechter-commissaris') or, if no magistrate ('rechter-commissaris') has been appointed, the provisional relief judge shall issue a certificate from which shows that the attachments (seizures) have ended, which certificate authorizes the keeper of the public registers to delete the attachments (seizures) there.
- 3. The provisions of the preceding paragraphs do not apply to foreclosures and attachments (seizures) executed or levied in connection with claims secured by a right of preference (priority) insofar as it concerns assets to which such right of preference (priority) is attached.
- 4. Article 36 shall apply accordingly to debts to which paragraph 1 applies.

Article 231 Legal proceedings
- 1. A moratorium on payment does not interrupt any pending legal proceedings, nor does it prevent the start of new legal proceedings.
- 2. If, however, the legal proceedings merely concern a claim for payment of a debt acknowledged by the debtor and the plaintiff does not require a judgment in order to assert rights against third parties, the court may, after officially recording the acknowledgement of the claim, postpone its judgment until the moratorium on payment has ended.
- 3. Without the cooperation of the administrators the debtor may not act in court, neither as a plaintiff nor as defendant, in legal proceedings relating to rights and obligations of the debtor’s estate (property).

Article 231a Pending lawsuits when insolvency proceedings in another EU Member State are opened
Article 231 applies accordingly to lawsuits (legal actions) concerning an asset or right with regard to which the debtor has lost the right of administration and the right of disposition as a result of the opening of insolvency proceedings which have to be recognized in the Netherlands on the basis of Article 16 of the European Regulation mentioned in Article 5, paragraph 3, if these proceedings are no winding-up proceedings within the meaning of Article 2, under point (c), of that European Regulation.

Article 232 Claims not affected by a moratorium on payment
A moratorium on payment has no effect on:
1° claims to which a right of preference (priority) is attached, except insofar as these claims cannot be recovered from the assets subject to that right of preference (priority);
2° claims for maintenance or for costs of care or upbringing indebted by the debtor pursuant to law and established (acknowledged) by agreement or a judicial decision, except as far as it concerns instalment payments established (acknowledged) by the court that were already due and demandable prior to the moratorium on payment and that fall within the scope of that moratorium.
3° instalments due under a hire-purchase agreement or under a hire-purchase agreement relating to ships.

Article 233 Payment of debts during a moratorium on payment
The payment of all other debts, already existing prior to the moratorium on payment, may, during the moratorium, be made only to all joint creditors in proportion to their claims.

Article 234 Setting-off a claim against a debt to the estate (property) of the debtor
- 1. A person who is both, a creditor and a debtor of the estate (property) of the debtor, may set-off his claim against his debt to that estate, provided that both, the claim and the debt, have come to existence before the start of the moratorium on payment or result from acts performed with the debtor before the start of the moratorium on payment.
- 2. If necessary, the amount of a claim against the debtor shall be calculated in accordance with the rules laid down in Articles 261 and 262.
- 3. Article 136 of Book 6 of the Civil Code may not be invoked on behalf of the estate (property) of the debtor.

Article 235 Situations in which a set-off is not permitted
- 1. Nevertheless, where a person has acquired from a third party, prior to the start of the moratorium on payment, a claim against the debtor, he is not entitled to make a set-off as referred to in the previous Article if he did not acquire this claim in good faith; the same applies when a person has taken over from a third person, prior to the start of the moratorium on payment, a debt payable to the debtor, and he did not act in good faith at the time of that debt assumption.
- 2. A set-off is never permitted for claims or debts acquired (assigned) or taken over (assumed) after the start of the moratorium on payment.
- 3. Articles 55 and 56 shall apply accordingly

Article 236 Mutual agreements entered into prior to the moratorium on payment
- 1. If, at the start of the moratorium on payment, a mutual agreement has not been performed at all or only partially by both, the debtor and his counterparty, and the debtor and administrator have not stated, within a reasonable period set for this purpose in writing by the counterparty, whether they wish to continue the performance of the agreement, then they will lose their right to claim performance of that agreement.
- 2. If the debtor and administrator have stated that they are prepared to perform the agreement, then they must, if so requested, provide security for the proper performance of the agreement.
- 3. The preceding paragraphs do not apply to agreements through which the debtor only has engaged himself to obligations which require a performance that is to be made by him personally.

Article 236a Claims on account of a rescission or nullification of an agreement; claims for compensatory damages
Claims against the debtor, acquired by the counterparty on account of the rescission or nullification of an agreement concluded prior to the start of the moratorium on payment, or acquired as a compensation for damages suffered as a result of the non-performance of a claim which the counterparty already had acquired prior to the start of the moratorium on payment, may be submitted on the basis of what is provided in Article 233.

Article 237 Delivery of goods traded on a commodity market
If, in a situation as referred to in Article 236, it has been stipulated that goods, which are traded on a commodity market, are to be delivered at a fixed time or within a certain period, and such time is reached or such period has expired after the start of the moratorium on payment, then the agreement is rescinded on account of the provisional moratorium on payment, and the counterparty of the debtor may in any event submit an unsecured claim for damages in accordance with Article 233. Where the estate (property) of the debtor suffers a loss because of such rescission, the counterparty must compensate that loss.

Article 237a Hire-purchase agreements
- 1. When the debtor is a purchaser under a hire-purchase agreement, both, he and the seller, may rescind the hire-purchase agreement or any agreement for the hire-purchase of a ship as soon as the moratorium on payment has taken effect.
- 2. Such a rescission has the same legal effects as the rescission of an agreement on the ground of a non-performance of the obligations (breach of contract) by the purchaser.
- 3. The seller may submit a claim for the amount which the purchaser is due to him in accordance with Article 233.

Article 237b Obligations for the regular supply of gas, water electricity and heat
- 1. A counterparty may not, in relation to the debtor, withhold the performance of an obligation resulting from an agreement for the regular supply of gas, water, electricity or heat, required to provide the primary necessities of life or for the continuation of an enterprise conducted by the bankrupt debtor, on the ground that the debtor has not performed a financial obligation which already existed prior to the start of the moratorium on payment.
- 2. The non-performance by the debtor of an obligation as meant in paragraph 1, which non-performance took place prior to the granting of the moratorium on payment, does not produce a legal ground for the rescission of an agreement as meant in paragraph 1.
- 3. An appeal by the counterparty to a contractual stipulation, specifying that a moratorium on payment or a seizure (attachment) of the debtor’s property by a third person produces a legal ground for the rescission of an agreement as meant in paragraph 1 or leads automatically to a rescission of such agreement, shall only have effect if the debtor and administrator have given their consent thereto.

Article 238 Lease and farm lease agreements
- 1. If the debtor is a lessee (tenant), both, he and the lessor (landlord), may prematurely terminate the lease agreement in accordance with Article 228 as soon as the moratorium on payment has taken effect, provided notice of termination is given at an effective termination date in conformity with a termination date as indicated by local custom for such lease agreements. Furthermore, the agreed or customary notice periods must be observed, on the understanding, however, that three months' notice will be sufficient in any case. If rent has been paid in advance, no notice of termination of the lease can be given at an effective termination date before the last day of the period for which the rent as been paid already.
- 2. The rent that becomes indebted as of the day of the start of the moratorium on payment will be an estate debt*).
- 3. If the debtor is a farm lessee (agricultural lessee), the above applies accordingly.

*) Estate debts are debts which are made by or with the consent of the liquidator for account of the liquidation estate; the involved creditor has a preferential claim (estate claim) that must be satisfied first from the assets of the liquidation estate.

Article 239 Employment agreements and commercial agency agreements
- 1. As soon as the moratorium on payment has taken effect, the debtor may terminate the employment agreements with his employees with due observance of the agreed or statutory notice periods, on the understanding, however, that the employment agreement may be terminated in any event with six weeks' notice or, where the notice period set out in Article 672, paragraph 2, of Book 7 of the Civil Code is more than six weeks, in accordance with such notice period.
- 2. As soon as the moratorium on payment has taken effect, an employee of the debtor who gives notice to terminate his employment agreement does not have to observe the provisions of Article 672, paragraph 3, of Book 7 of the Civil Code.
- 3. The wages and premiums relating to the employment agreement that become indebted as of the day of the start of the moratorium on payment are estate debts*).
- 4. The present Article applies accordingly to commercial agency agreements

*) Estate debts are debts which are made by or with the consent of the liquidator for account of the liquidation estate; the involved creditor has a preferential claim (estate claim) that must be satisfied first from the assets of the liquidation estate.

Article 240 Performance made in good faith to the debtor after the moratorium on payment had been granted provisionally
- 1. Where a claim of the debtor, arisen before the start of the moratorium on payment, has been performed to the debtor after the moratorium on payment has been granted, yet before the publication of the moratorium on payment, the person who performed that claim will be released (discharged) from his obligation towards the debtor’s estate (property), as long as it is not proved that he knew of the moratorium on payment at the moment of performance.
- 2. Where a claim as referred to in the previous paragraph has been performed to the debtor after the publication of the moratorium on payment, the person who performed that claim will only be release (discharge) from his obligation towards the debtor’s estate (property), if he proves that, at the moment of performance, in his domicile no knowledge of the provisionally granted moratorium on payment could have been obtained through the statutory required publication, subject to the right of the administrators to prove that the moratorium was known to him nevertheless.
- 3. A person who has made a performance to a debtor is in any event released (discharged) from his obligation as far as his performance has been received by the debtor’s estate (property) or has been beneficial for that estate otherwise.

Article 241 Moratorium does not affect the right to claim performance from sureties and co-debtors
A moratorium on payment does not take effect in favour of sureties (guarantors) and other co-debtors.

Article 241a Cooling-off period
- 1. The District Court may proclaim, upon the request of any interested party or of its own motion, a cooling-off period during which each right of third persons, with the exception of creditors with an estate claim*), to take recourse against the assets of the debtor’s estate (property) or to claim the handing over of assets which are under control of the debtor, may be exercised only either with its (the District Court’s) authorization**) or, if a magistrate ('rechter-commissaris') has been appointed, with the consent of this magistrate ('rechter-commissaris'); such cooling-off period may not exceed a period of two months. The District Court may extend this period once with at the most another two months.
- 2. The District Court may restrict its court order to certain third persons, and it may attach specific conditions to it. The District Court and the magistrate ('rechter-commissaris') may attach specific conditions to the authorization which is to be granted by them to a third person who wants to exercise a right as referred to in paragraph 1.
- 3. When a third person, in relation to the exercise of rights as referred to in paragraph 1, has subjected the debtor and administrator to a reasonable time period, this time period will be suspended (will not run any further) during the cooling-off period.
- 4. Upon the request of the debtor, a cooling-off period may be proclaimed also by the District Court which grants the moratorium on payment. A cooling-off period that is proclaimed simultaneously with the granting of a moratorium on payment is presumed to have legal effect from the beginning of the day on which the moratorium on payment was provisionally granted.

*) Estate debts are debts which are made by or with the consent of the liquidator for account of the liquidation estate; the involved creditor has a preferential claim (estate claim) that must be satisfied first from the assets of the liquidation estate.
**) This cooling-off period has been introduced to prevent that third persons, like lessors who have leased out assets, suppliers who have delivered assets under a retention of title or who may exercise a right of reclamation, but also pledgees with a non-possessory pledge, immediately after the declaration of bankruptcy will hurry to the premises of the bankrupt debtor to take away all assets with regard to which they claim to have a (preferential recovery) right, They act this way because the Dutch Tax Authorities have the right to attach (seize) all movable things which are found on the premises of the bankrupt taxpayer, irrespective of to whom these assets actually belong.

Article 241b Rights of a pledgee during the cooling-off period
- 1. In the event that the debtor has granted (established) a pledge on a claim to name or on the usufruct of such a claim in accordance with Article 239, paragraph 1, of Book 3 of the Civil Code, the pledgee remains entitled, during the cooling-off period, to make a notification as meant in Article 239, paragraph 3, of that Book, and to collect payments made by on the pledged claim.
- 2. Article 490b, paragraph 2, of the Code of Civil Procedure applies accordingly, on the understanding that the pledgee has to deposit the entire amount to the person who shall keep it in safe custody.

Article 241c Attachment as referred to in the Tax Collection Act 1990 levied by the Tax Collector
- 1. During the cooling-off period, the Tax Collector who has levied an attachment (seizure) as referred to in Article 22, paragraph 3, of the Tax Collection Act 1990*) ('Invorderingswet 1990'), may not proceed to a sale under execution (foreclosure), unless the District Court or the magistrate ('rechter-commissaris'), if one is appointed, has decided differently.
- 2. An attachment (seizure) as referred to in Article 22, paragraph 3, of the Tax Collection Act 1990*) ('Invorderingswet 1990'), that has been levied during the cooling-off period on a thing found on the premises of the bankrupt debtor, cannot be invoked against the owner of that thing or, if the thing is encumbered with a (non-possessory) pledge on behalf of another person, against this other person, if the owner or this other person had already claimed by means of an officially served bailiff’s writ the handing over of that thing before the attachment (seizure) was levied.

*) The Dutch Tax Authorities have the right to attach (seize) all movable things which are found on the premises of the bankrupt taxpayer, irrespective of to whom these assets actually belong, and to recover their claims from the sale proceeds of these assets.

Article 241d Pledge on account of a financial collateral agreement
Excluded from the assets meant in Article 241a, paragraph 1, are assets which are pledged on account of a financial collateral agreement as referred to in Article 51 of Book 7 of the Civil Code.

Article 241e Moratorium on payment on account of a financial collateral agreement
- 1. Where a moratorium on payment has been granted on behalf of a debtor on account of a financial collateral agreement as referred to in Article 51 of Book 7 of the Civil Code, it does not have, this in derogation from Article 217, retroactive effect to the beginning of the day on which it was granted provisionally, with regard to a financial collateral agreement concluded by the debtor prior to the day of the moratorium on payment or with regard to a transfer, the establishment of a pledge or the instruction to make a set-off in respect thereof.
- 2. Articles 217, 228, paragraph 2, 234, paragraph 1 and 235, paragraph 2, of the present Act, cannot be invoked against third persons with regard to a financial collateral agreement as referred to in Article 51 of Book 7 of the Civil Code, concluded by the debtor after the moratorium on payment was granted, nor with regard to a transfer or the establishment of a pledge based on a financial collateral agreement or any other juridical act based on a financial collateral agreement on account of obligations of the debtor that have come to existence after the granting of the moratorium on payment, provided that the involved juridical act is performed at the latest on the date on which the moratorium on payment was granted and that the counterparty is able to show that he was not aware nor ought to have been aware of the granting of a moratorium on payment when that juridical act was performed.

Article 242 Withdrawal of a granted moratorium
- 1. After the moratorium on payment has been granted, it may be withdrawn (revoked) upon the recommendation of the magistrate ('rechter-commissaris'), if one is appointed, or upon the request of the administrators or of one or more of the creditors or of the court's own motion:
1° if the debtor has acted in bad faith in administering (managing) his estate (property) during the moratorium on payment;
2° if the debtor attempts to prejudice his creditors;
3° if the debtor acts in breach of Article 228, paragraph 1;
4° if the debtor fails to do what he has been ordered to do by the District Court when the moratorium on payment was granted to him or if he fails to do what he should do according to the administrators in the interest of the liquidation estate;
5° if, pending the moratorium on payment, the condition of the debtor’s estate (property) appears to be such that it is no longer desirable to maintain the moratorium on payment or if it is not to be expected that the debtor will be able to satisfy his creditors in due course.
- 2. In the situations referred to under (1°) and (5°) of the preceding paragraph, the administrators are compelled to request for the withdrawal of the moratorium on payment.
- 3. The petitioner, the debtor and the administrators shall be heard or duly summoned. The summons shall be made by the clerk of the court on a date to be set by the District Court. The court order must state the reasons for the decision given.
- 4. If the moratorium on payment is withdrawn on the basis of the present Article, then the District Court may, in the same court order, proclaim the bankruptcy of the debtor. If the debtor is not declared bankrupt, the moratorium on payment shall be maintained until the court order in which it was withdrawn has become final and binding.

Article 243 Appeal against a withdrawal of a moratorium or against the denial of a request for such withdrawal
- 1. If a moratorium on payment has been withdrawn by the District Court, the debtor may lodge an appeal against that decision within eight days after the date of the involved court order; if the request for a withdrawal of the moratorium on payment has been denied by the District Court, the person who has made such request may lodge an appeal against that decision within eight days after the date of the involved court order.
- 2. Such an appeal shall be made by submitting a petition to the office of the clerk of the Court of Appeal which must hear the matter. The clerk of the Court of Appeal shall, without delay, notify the clerk of the District Court which rendered the court order.
- 3. The presiding judge of the Court of Appeal shall immediately specify the date and time for the hearing of the petition. As soon as possible the clerk of the Court of Appeal shall, by letter, summon the parties who requested the withdrawal, the debtor and the administrators to appear at the hearing on the specified date.
- 4. The clerk of the Court of Appeal shall, without delay, inform the clerk of the District Court about the court order rendered by the Court of Appeal.

Article 244 Appeal in cassation
- 1. Within eight days after the date of the court order of the Court of Appeal, the person who has been put in the wrong may file an appeal in cassation (appeal to the Supreme Court).
- 2. Such an appeal in cassation is made by submitting a petition to the office of the clerk of the Supreme Court. The clerk of the Supreme Court shall, without delay, notify the clerk of the Court of Appeal that an appeal in cassation has been made.
- 3. The presiding judge of the Supreme Court shall immediately specify the date and time of the hearing of the petition. As soon as possible the clerk of the Supreme Court shall, by letter, summon the parties involved to appear at the hearing on the specified date. The clerk of the Supreme Court shall, without delay, inform the clerk of the District Court about the court order rendered by the Supreme Court.

Article 245 Publication of a final and binding withdrawal of a moratorium
As soon as a court order in which a moratorium on payment has been withdrawn has become final and binding, it will be published as prescribed by Article 216.

Article 246 Adjournment of the hearing of the creditors provided under Article 215
- 1. If the District Court is of the opinion that the hearing of the request for a withdrawal of a moratorium on payment shall not be finished before the date on which the creditors are to be heard as provided in Article 215, paragraph 2, the District Court shall order the clerk of the court to inform the creditors, by letter, that their hearing will not be held on that day.
- 2. If necessary, the District Court shall subsequently set another date for this hearing; the creditors shall be summoned, by letter, by the clerk of the court to appear at that hearing.

Article 247 Request of the debtor for a withdrawal of the moratorium on payment
- 1. The debtor may at all times request the District Court for a withdrawal of the moratorium on payment on the ground that the condition of the debtor’s estate (property) enables him to restart the payment of his debts. The administrators and, in the case of a definitive granted moratorium on payment, the creditors, shall be heard or duly summoned to appear at the hearing of such request.
- 2. The summons to appear at the hearing on a date specified by the District Court shall be issued, by letter, by the clerk of the District Court.

Article 247a Conversion of a moratorium into the Debt Repayment Scheme
- 1. No later than on the eighth day prior to the date set in accordance with Article 215, paragraph 2, and, in any case, no later than two months after the day on which the moratorium was granted provisionally, the District Court may, upon the request of the debtor who is a natural person, withdraw the provisionally granted moratorium and simultaneously order the application of the Debt Repayment Scheme referred to in Title III.
- 2. For such purpose the debtor shall address himself by means of a petition as referred to in Article 284 to the District Court which granted the moratorium provisionally.
- 3. Prior to its decision, the District Court may summon the debtor, the magistrate ('rechter-commissaris') and the administrator to be heard in court.
- 4. Article 6, paragraph 2, shall apply.
- 5. When the District Court awards the request (petition) of the debtor, it shall order the definitive application of the Debt Repayment Scheme.
- 6. In the notice required by Article 293, the clerk of the court shall give notice that the provisionally granted moratorium has been withdrawn. Such notice shall also state that the hearing of creditors in accordance with Article 215, paragraph 2, will not be held. If, on the basis of Article 255 or 264, a time was set already for consultation and voting in respect of a final arrangement (composition) with the creditors, the notice shall also mention that no such consultation and voting shall take place anymore.

Article 247b Legal actions regarding a conversion of the moratorium into the Debt Repayment Scheme
- 1. No appeal or other legal remedies (actions) are available against the judicial decision to withdraw the provisionally granted moratorium, simultaneously ordering the application of the Debt Repayment Scheme, neither for the creditors, nor for other interested parties.
- 2. If the request for the application of the Debt Repayment Scheme has been denied by the District Court, the debtor may lodge an appeal against that decision within eight days after the date of the involved decision. Such an appeal is made by submitting a petition to the clerk of the Court of Appeal which must hear the matter. The clerk of the Court of Appeal shall, without delay, notify the clerk of the District Court that such a petition has been submitted.
- 3. The presiding judge shall immediately set the date and hour for the hearing which must be held within twenty days after the date on which the petition was submitted. The decision on this petition shall be pronounced no later than on the eighth day after that of the court hearing of the petition. The clerk of the District Court shall be notified without delay by the clerk of the Court of Appeal of the decision rendered by the Court of Appeal.
- 4. Within eight days after the date of the decision of the Court of Appeal, the debtor may lodge an appeal in cassation (appeal to the Supreme Court) against that decision. Such an appeal in cassation is made by submitting a petition to the clerk's office of the Supreme Court. The presiding judge of the Supreme Court shall immediately set the date and hour for the hearing. The clerk of the Supreme Court shall, without delay, notify the clerk of the District Court of the appeal in cassation and of the decision of the Supreme Court.
- 5. As long as no decision has been given on the petition referred to in Article 247a, paragraph 2, and provided that the application of the Debt Repayment Scheme has not been ordered, no definitive moratorium on payment may be granted and no consultation on a final arrangement (composition) with the creditors may take place pending the appeal or appeal in cassation.

Article 247c Acts performed during the moratorium remain valid after a conversion into the Debt Repayment Scheme
- 1. If the moratorium on payment has been withdrawn and simultaneously a court order for the application of the Debt Repayment Scheme has been rendered, the following shall apply:
a. the powers granted to the administrator under the moratorium on payment on the basis of Article 228, paragraph 1, fist sentence, shall be exercised by the administrator under the Debt Repayment Scheme;
b. estate debts*) which arose during the implementation of the moratorium shall be treated as estate debts*) for the application of the Debt Repayment Scheme;
c. claims submitted by creditors during the moratorium shall be treated as claims submitted for the application of the Debt Repayment Scheme.
2 Article 249, paragraph 1, under (1°) and (4°) shall apply accordingly.

*) Estate debts are debts which are made by or with the consent of the liquidator for account of the liquidation estate; the involved creditor has a preferential claim (estate claim) that must be satisfied first from the assets of the liquidation estate.

Article 247d Application of certain Articles in the event of a conversion meant in Article 37 of the European Regulation
In the event of a request for a conversion as meant in Article 37 of the European Regulation mentioned in Article 5, paragraph 3, the following Articles shall apply accordingly where it concerns a conversion into bankruptcy: Articles 242, paragraph 3, and 243 up to and including 246; where it concerns a conversion into the application of a Debt Repayment Scheme, the following Articles shall apply accordingly in such event: Articles 247a, paragraph 3 up to and including 5, 247b, paragraph 1 and 247c.

Article 248 Request for a bankruptcy order during a moratorium
- 1. During a moratorium on payment a declaration of bankruptcy (bankruptcy order) may not be requested without proper notice.
- 2. If a bankruptcy order is rendered pursuant to the provisions of the present Title (Title II), Article 14 shall apply accordingly; if the bankruptcy order is nullified under such provisions, Articles 13 and 15 shall apply accordingly.

Article 249 Declaration of bankruptcy after a moratorium on payment
- 1. If the debtor is declared bankrupt pursuant to the provisions of the present Title (Title II) or within one month after the end of a moratorium on payment, the following provisions will apply:
1° for the purpose of the periods referred to in Articles 43 and 45 of the present Act and in Articles 138, paragraph 6, and 248, paragraph 6, of Book 2 of the Civil Code, the moment as of which the period start to run shall be calculated from the start of the moratorium on payment;
2° the liquidator in bankruptcy ('curator') shall exercise the powers conferred on the administrators in the first paragraph of Article 228;
3° juridical acts performed by the debtor with the cooperation, authorisation or assistance of the administrators shall be deemed to be juridical acts of the liquidator in bankruptcy ('curator'), and estate debts*) incurred during the moratorium on payment shall be deemed to be estate debts*) in bankruptcy;
4° the liquidation estate shall not be liable for obligations of the debtor that have arisen during the moratorium without the cooperation, authorisation or assistance of the administrators, except as far as the liquidation estate has benefited from them.
- 2. If a request (petition) for a new moratorium is lodged within one month after the expiration of an earlier moratorium, the provisions of paragraph 1 shall apply as well in respect of the period of the next moratorium on payment.

*) Estate debts are debts which are made by or with the consent of the liquidator for account of the liquidation estate; the involved creditor has a preferential claim (estate claim) that must be satisfied first from the assets of the liquidation estate.

Article 249a Continuation of a guarantee scheme for a financial institution during its bankruptcy
If an investment firm as meant in Article 1:1 of the Financial Supervision Act, or a financial institution which has obtained a supervisory status certificate as meant in Article 3:110 of that Act, or a person who holds a license as meant in Article 3:4 paragraph 1 of that Act, has been declared bankrupt pursuant to any provision of the present Title (Title II) or within one month after the end of a moratorium on payment which was granted on behalf of such enterprise, then the implementation of a guarantee scheme which had been applied during the moratorium on payment, will be continued during the bankruptcy on the basis of Part 3.5.6 of the Financial Supervision Act.

Article 250 Remuneration of experts and administrators
- 1. The remuneration of the experts, appointed pursuant to Article 226, and the remuneration of the administrators shall be determined by the District Court and paid with priority.
- 2. The latter also applies to their disbursements and to fees imposed by the clerk in accordance with the present Title (Title II).

Article 250a [repealed on 01-01-2007]

Article 251 Provisions of international law
The provisions of international law of Articles 203 up to and including 205 apply accordingly in the event of a moratorium on payment.