5.

The Zakon o ništetnosti ugovora o kreditu s međunarodnim obilježjima sklopljenih u Republici Hrvatskoj s neovlaštenim vjerovnikom (Law on the nullity of loan contracts with international features concluded in the Republic of Croatia with an unauthorised creditor, ‘the Law of 14 July 2017’) ( 4 ) states as follows in the first paragraph of Article 1, Articles 2 to 5 and 7 to 11: ‘Law on the nullity of loan contracts with international features concluded in the Republic of Croatia with an unauthorised creditor Object of the law Article 1 (1) The present law applies to credit contracts featuring international elements which have been concluded in the Republic of Croatia between debtors and unauthorised lenders, with the exception of contracts which have been concluded by the following debtors; … (2) The present law equally applies to other legal acts established in the Republic of Croatia between debtors and non-authorised lenders that are aimed at a credit contract featuring international elements in the sense of the first paragraph of the present article or which are founded on such a contract. Definitions Article 2 In the sense of the present law, the term: — “debtor” refers to all physical or moral persons to whom a credit has been granted by virtue of a credit contract featuring international elements, or all persons who profit from a person to whom such a credit has been granted in its capacity as a co-debtor, debtor creditor, co-debtor creditor, or guarantor. — “non-authorised lender” refers to all moral persons who have agreed to provide a credit to a debtor pursuant to a credit contract featuring international elements, and whose statutory seat is situated outside of the Republic of Croatia at the date of the contract featuring international elements and which propose or supply credit services in the Republic of Croatia, even though such a lender does not satisfy the conditions required by regulation for the supply of such services, and more precisely, it does not have the authorisations and/or agreement of the competent authorities of the Republic of Croatia. … Nullity of credit contracts Article 3 (1) Credit contracts featuring international elements which have been concluded in the Republic of Croatia between debtors and unauthorised lenders are null and void. (2) By way of derogation from paragraph 1 of the present article, nullity cannot be invoked when a contract has been completed in its entirety. Nullity of other legal acts Article 4 All acts of a notary established on the basis of, or having a link with, a null and void contract in the sense of Article 3 of the present law shall be null and void. Exclusion of forced execution Article 5 When a judgment establishing the nullity of a credit contract or the nullity of an act of a notary founded on a null and void contract has acquired the status of res judicata, all execution procedures against the debtor before courts or financial agencies shall be closed at the request of the debtor. … Effects of nullity Article 7 Each contracting party is bound to give restitution to the other party of everything it has received by virtue of the null and void contract, and if that is not possible or if the nature of that which was executed precludes restitution, an appropriate pecuniary indemnity must be provided, which is to be fixed as a function of the price in place on the date on which the judicial decision is rendered. Competence Article 8 (1) In the framework of litigation concerning credit contracts featuring international elements, in the sense of the present law, an action initiated by the debtor against an unauthorised lender can be brought either before the courts of the State on the territory of which the unauthorised lender has its seat (whatever the seat of the unauthorised creditor) or before the courts of the place where the debtor has his domicile or his seat. (2) The action instituted against the debtor by the unauthorised lender, in the sense of paragraph 1 of the present article, can only be brought before the courts of the State on the territory on which the debtor has his domicile or seat. The law applicable to null and void contracts in the sense of the present law is, exclusively, the law of Croatia and the court seised of an action concerning the nullity of such a contract will apply the present law to such an action, without examining if there exist presumptions for the application of the law of the place of the conclusion of the contract by virtue of other legislative instruments Transitory and final provisions Article 9 The present law is without prejudice to rights conferred on debtors by special laws when they are more favourable. Article 10 (1) Credit contracts featuring international elements, in the sense of the present law, which have been concluded in the Republic of Croatia, before the entry into force of the present law, between debtors and unauthorised creditors, are null and void from the date of their conclusion, resulting in the effects indicated in Article 7. (2) Other legal acts established in the Republic of Croatia, before the entry into force of the present law, between debtors and unauthorised creditors, which follow from a credit contract featuring international elements aimed at paragraph 1 of the present article which are founded on such a contract, are null and void from the date of their establishment, entailing the effects set out in Article 7. Article 11 The present law enters into force 8 days after its publication in “Narodne novine” Zagreb, 14 July 2017.’