SPAIN – Civil Liability Insurance For Court Receivers

SPAIN – MANDATORY CIVIL LIABILITY INSURANCE FOR COURT RECEIVERS. A new Royal Decree (RD) 1333/2012, regulates the need for receivers to take civil liability insurance or equivalent warranties. The RD further implements the previous regime in place since the enactment of Law 38/2011, of October 10, that amended Law 22/2003 on Insolvency Procedures. (Ley Concursal). The existence of the insurance or warranty for an amount of not less than 300.000€ (can be increased if the receiver acts in more than one insolvency proceedings)  is a condition precedent to the Receiver accepting the position and must be effective until the end of his engagement, while the court is bound by the regulations to notify the insurance or bond positing company the date on which the insured risk starts. We shall be pleased to expand or comment.