Blank debentures are one of the instruments for securing monetary claims within the legal system of the Republic of Croatia.
A blank debenture is a private document issued by the debtor and certified by a notary public, through which the debtor grants permission to the creditor to collect the owed amount in the event of a failure to fulfill obligations arising from the contractual relationship secured by the debenture.
Blank debenture – specifics
A blank debenture is a private document certified by a notary public through which the debtor consents to the seizure of all their bank accounts for the purpose of debt collection.
The funds from these accounts are to be directly transferred to the creditor, in accordance with the statement contained in the document, These funds will be directly paid to the creditor either already specified in the debenture or to be added later.
The specificity of a blank debenture lies in the fact that the claim or debt subject to the debenture will be entered at a later time.
Thus, the key difference between a debenture and a blank debenture is that, in the case of a blank debenture, the exact amount it secures is not specified at the time of issuance, nor does it need to identify the creditor precisely.
It is important to emphasize that all issued blank debentures must be registered in the Register of Debentures and Blank Debentures, which is also a prerequisite for debt collection through the Financial Agency.
Additionally, a blank debenture remains valid in terms of its content even if the creditor later enters a claim amount that is less than or equal to the amount for which the debtor gave consent to at the time it was notarized.
The obligation under the blank debenture can be assumed by other persons on behalf of the debtor.
In such cases, these individuals act as guarantor payers, providing a written statement identical in form and content to that of the debtor.
This statement can be given simultaneously with the debtor’s statement or at a later time.
Collection process
A blank debenture is issued in a single copy, and once the debt amount and creditor details are entered, it takes effect as an enforceable decision, allowing the seizure of funds from the debtor’s accounts and their transfer to the creditor.
The creditor then submits the original blank debenture, with the debt amount and creditor details filled in, to the Financial Agency, with the same effect as submitting a court-issued enforcement order.
This submission can be made by registered mail with return receipt, by direct delivery, or through a notary public.
Upon submission of the blank debenture, the funds are seized from the accounts of the debtor and transferred to the creditor.