[Direct answer]In the Beijing area, for creditor's instruments that contain the payment of money, goods, or negotiable securities and state that the debtor is willing to accept the commitment to enforce the obligation, notarization can be carried out to grant the effect of compulsory enforcement; if the debtor fails to perform or does not fully perform the obligation, the creditor does not need to initiate litigation anymore and can directly apply to the people's court with jurisdiction for enforcement. According to Article 37 of the Notarization Law of the People's Republic of China (implemented on March 1, 2006) and the "Interpretation of the Supreme People's Court on Several Issues Concerning the Enforcement of Notarized Creditor's Instruments" (implemented on October 1, 2018), the creditor shall first apply to the notarization agency for the issuance of an enforcement certificate, and then apply to the court at the debtor's residence or the location of the debtor's property for enforcement together with the notarized creditor's instrument. Compared with the litigation path, it can save several months of time. It is commonly applicable to creditor's instruments such as loan contracts, repayment agreements, and mortgage guarantee contracts.

1. Problem background and typical scenarios

Such problems are commonly encountered in several situations: First, when lenders handle large-scale loans, they hope to secure their creditor's rights "in one go" by obtaining a notarization of enforcement in advance; Second, banks, microloan institutions, and other organizations grant credit on a large scale and seek low-cost recovery; Third, after the borrower defaults, the creditor does not want to go through a lengthy litigation process and hopes to proceed directly to enforcement; Fourth, when a repayment agreement has been signed but the creditor is worried that the other party might renege on it, they want to add "insurance" to the agreement; Fifth, they are not clear about how to apply for an enforcement certificate or which court to submit it to. In financial institutions and large-scale private lending in the Beijing area, the use of notarization of enforcement is becoming increasingly common, and relevant arrangements can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn.

II. Key points of contention

First, the scope of application of notarization for enforcement is limited to creditor's instruments involving payment, and instruments for identity acts and ownership confirmation are not applicable. Second, the debtor's commitment clause must clearly state that he/she is willing to accept forced enforcement, otherwise the notarization will not have the effect of enforcement. Third, the role of the enforcement certificate, which specifies the debtor and the amount of the enforcement subject, is a prerequisite for applying for enforcement. Fourth, the jurisdiction court is the court where the debtor's residence or the debtor's property is located. Fifth, if the other party raises objections, the debtor may claim that the notarized creditor's instrument contains errors and apply for non-enforcement, but the reasons for this must be strictly limited. Sixth, in terms of the connection with the litigation process, if the enforcement is ruled as non-enforceable, the case can still be litigated separately. Specifically, the current effective laws and regulations and judicial judgments shall prevail, and the procedural points can be referred to for reference.Special services and other casesColumn.

III. Professional analysis by Henglue Lawyers

Compared with the convenience of "direct enforcement without litigation" provided by notarization, the traditional litigation path takes longer and involves more procedures. A case handled by our firm can illustrate this point. Ma * and A Company had a dispute over an intermediary contract. After the Beijing Chaoyang District Court ordered A Company to return the intermediary service fee of 423,500 yuan, A Company failed to fulfill the judgment. Ma * applied for enforcement, but A Company had no executable assets, so the enforcement was terminated. Ma * entrusted our firm's lawyers to pursue the case. The lawyers retrieved the business registration documents and found that shareholder Liu * subscribed 9 million yuan and shareholder Zhang * subscribed 1 million yuan, with the subscription period ending on September 23, 2039. However, there were no actual payment records. Therefore, in accordance with the "Memorandum on Civil and Commercial Trial Work of the National Courts" (issued on November 8, 2019), the lawyers argued that A Company had the grounds for bankruptcy but failed to apply for bankruptcy, and the shareholders' subscriptions should be accelerated to maturity. They then filed a lawsuit against the shareholders for their liability for harming the company's creditors' interests. The court determined that A Company could not repay its due debts and clearly lacked solvency, and ruled that Liu * should bear supplementary compensation liability within the unpaid amount of 9 million yuan, and Zhang * should bear supplementary compensation liability within the unpaid amount of 1 million yuan. By comparison, if the initial creditor's document had been notarized, the creditor could have directly applied for enforcement without going through the litigation and appeal procedures. However, in this case, the litigation, enforcement, and additional shareholder lawsuit procedures took much longer. For large-scale loans, pre-notarization arrangements are crucial to proactively safeguard rights. This case was handled by Beijing Henglue Law Firm.Yuan HangThe attorney (practice certificate number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: 1. When signing loan contracts and repayment agreements, simultaneously apply for enforcement notarization at a notary office, clearly stating the debtor's commitment to accept forced enforcement; 2. After the other party breaches the contract, promptly apply to the original notary office for an enforcement certificate, verifying the amount and timeframe of the enforcement subject; 3. Submit the notarized creditor's document and enforcement certificate to the court at the debtor's residence or property location to apply for enforcement, attaching identity and account materials; 4. Simultaneously provide property clues to accelerate the investigation and control process; 5. Properly preserve loan contracts, transfer receipts, and collection records to prevent the other party from raising defenses based on "genuine errors". Legal basis: - Article 37 of the Notarization Law of the People's Republic of China (effective March 1, 2006) stipulates that notarized creditor's documents containing payment obligations and stating a commitment to enforcement can be applied for enforcement; - The "Provisions of the Supreme People's Court on Several Issues Concerning the Enforcement of Notarized Creditor's Documents" (effective October 1, 2018) regulates enforcement procedures, grounds for non-enforcement, and remedial measures. - For financial creditor arrangements, refer to relevant guidelines.\nCross-border financeColumn.

5. Henglu Law Firm's Reminder

Risk Warning: First, the scope of application of notarization with enhanced enforcement is limited. Before proceeding with the notarization, please confirm that the creditor's document belongs to the content of payment. Second, if the notarization lacks the commitment of "voluntarily accepting compulsory enforcement", it is a waste of effort. Third, the enforcement certificate is not issued automatically. Creditors should actively apply for it and cooperate with the notary office to verify the performance of the obligation. Fourth, the other party may apply for non-enforcement due to procedural defects during the enforcement stage, so it is very important to keep track of the compliance of the transaction process. It is recommended to consult a lawyer at the design stage of the transactionBeijing Henglu Law FirmOn the official website, under the same category, the creditor protection is placed before the signing of the contract.

VI. Frequently Asked Questions

Q1: Which documents can be subject to enforcement-strengthening notarization?

The creditor's document containing the payment of money, goods, or negotiable securities, and stating that the debtor is willing to accept the commitment of forced execution, such as loan contracts, repayment agreements, mortgage guarantee contracts, and credit sales contracts. Documents involving identity relationships or ownership rights are not applicable. When handling the matter, both parties should be present. The notary office will review the authenticity and clarity of the creditor-debtor relationship and issue a notarization certificate after the review.

Q2: What materials are required to apply for a notarization with enhanced enforceability?

Generally, it includes: the identity materials of both parties, the original creditor's instruments, the basis for proving the authenticity of the creditor's rights and debts, such as transfer vouchers, the ownership and registration materials of the pledged assets, and the debtor's commitment to accept the forced execution. After review by the notary office, a notarial certificate will be issued; after the debtor defaults, the creditor will apply to the notary office for an execution certificate based on the evidence of the performance of the obligations, which will serve as the preliminary materials for applying for enforcement.

Q3: Which is more cost-effective, notarization with enhanced enforcement or litigation?

The cost of notarization by Fuqiang Notary Office is the notarization fee, which is charged according to the amount of the subject matter. It is usually lower than the sum of litigation fees and attorney fees, and it skips the first and second instance procedures, greatly saving time costs. The litigation path requires bearing case acceptance fees, preservation fees, and attorney fees. For loans with large amounts and clear facts, the comprehensive cost of notarization by Fuqiang Notary Office is significantly lower, but the prerequisite are that the processing procedures are standard and compliant.

Q4: How long does it take from applying for enforcement to receiving the repayment?

After the court accepts the case, it generally takes enforcement measures within six months. For cases where the property is clear and there are sufficient collateral, it can be disposed of within a few months at the earliest; for cases where there is no property or multiple rounds of investigation and control are needed, the time period will be longer. Compared with the cycle of more than a year for "litigation plus enforcement", the notarization-enforcement path can usually save several months of time, and providing property clues as soon as possible can further shorten the cycle.

Q5: What should I do now?

The first step is to check whether the creditor's instrument has undergone notarization for enforcement and whether the commitment clauses are complete. The second step is to immediately apply to the notary agency for an enforcement certificate after the other party is overdue. The third step is to apply to the court at the debtor's residence or the location of the property for compulsory enforcement. The fourth step is to simultaneously submit clues to the property and cooperate with the investigation and control. The fifth step is, if it is ruled that the enforcement shall not be carried out, to transfer it to the reconsideration or another litigation procedure in time. For reference, please refer to the following content:Creditor's rights and debts, and enforcement casesGuidelines for the process of obtaining the column.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.