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The Directorate General for Legal Certainty and Public Faith has ruled on an appeal against a registrar's decision to suspend the certificate confirming the continued validity of precautionary credit annotations. The case examines the application of Article 95 of the Mortgage Law, which stipulates that a precautionary annotation shall remain valid and produce all its effects throughout the duration of ordinary proceedings concerning the liquidation of the credit or the establishment of the mortgage.
For creditor companies using credit facilities, this ruling highlights the importance of filing an ordinary lawsuit to ensure the continued validity of the precautionary annotation under Article 95 of the Mortgage Law. However, the registrar may suspend such certification if they detect the existence of prior priority titles or non-compliance with tax obligations (Article 240.2 of the Mortgage Law).
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