January 18, 2017, was the effective date of EU Regulation No 655/2014 of May 15, 2014 (the
"Regulation"). The main purpose of the Regulation was the
establishment of a European Account Preservation Order procedure: a
uniform, harmonized procedure that makes it easier for creditors to
obtain protective measures within the European Union (the
The Regulation enables a creditor to obtain a "preservation
order" (a "PO") designed to ensure that the creditor
can enforce its claims against a debtor or its assets in a
cross-border EU context. The Regulation applies only to pecuniary
claims asserted in civil and commercial matters in cross-border
cases. A cross-border case is defined as a case in which any bank
account to be preserved by a PO is maintained by the debtor in an
EU member state other than the member state containing the court in
which the application for the PO is filed or the member state in
which the creditor is domiciled.
A creditor may obtain a PO before suing the debtor in the court
of an EU member state upon demonstrating emergent need that its
ultimate recovery may be jeopardized, and a likelihood of success
on the merits in the litigation, or after obtaining a judgment
against the debtor. A debtor may oppose the entry or implementation
of a PO or seek its modification or revocation once entered. A
debtor also has the right to post security in lieu of entry of a PO
and may appeal the PO. Damages for any injury sustained by the
debtor due to the entry of a PO may be imposed on the creditor
under appropriate circumstances.
A more detailed discussion of the Regulation is available
here. The Regulation does not apply in the United Kingdom or
Denmark, which did not adopt it.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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