Article 1 › 4

By way of derogation from paragraph 3, point (b), in jurisdictions where junior liens provide the holder with a claim on collateral that is legally enforceable and constitutes an effective credit risk mitigant, junior liens held by an institution other than the one holding the senior lien may also be recognised, including where the institution does not hold the senior lien or does not hold a lien ranking between a more senior lien and a more junior lien both held by the institution. For the purposes of the first subparagraph, the rules governing the liens shall ensure all of the following: (a) each institution holding a lien on a property can initiate the sale of the property independently from other entities holding a lien on the property; (b) where the sale of the property is not carried out by means of a public auction, entities holding a senior lien take reasonable steps to obtain a fair market value or the best price that may be obtained in the circumstances when exercising any power of sale on their own.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04