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 "EU").

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.