OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA 3 Year No . 23 ADDIS ABABA - 27th February , 1997 ) CONTENTS Proclamation No . 65 / 1997 Civil Code ( Amendment ) Proclamation . . . . . Page 359 PROCLAMATION NO . 65 / 1997 A PROCLAMATION TO AMEND THE CIVIL CODE WHEREAS , it needs to make the collection of loan industrial development activities , efficient and thereby create a conducive atmosphere for economic transactions ; WHEREAS , it takes rather too long a time to obtain judgement , from courts of law , for the sale of bank collateral and to subsequently have it executed ; WHEREAS , consequently , banking business , sus taining on interest payments on loans it provides from public monies received by way of saving deposits , has been adversely affected ; WHEREAS , it is necessary to amend the Civil Code with respect to the sale of bank collateral ; NOW , THEREFORE , in accordance with Article 55 ( 1 ) of the Constitution of the Federal Democratic Republic of Ethiopia , it is hereby proclaimed as follows : 1 . Short Title This Proclamation may be cited as the “ Civil Code ( Amendment ) Proclamation No . 65 / 1997 . " Unit Price 2 - 30 www . AfricanLawArchive . com * * * The African Law Archive * * * www . AfricanLawArchive . com 2 . Amendment The 1960 Civil Code is amended as follows : 1 ) The following new sub - Articles ( 3 ) , ( 4 ) , ( 5 ) and ( 6 ) are added after sub - Article ( 2 ) of Article 2851 : “ 3 ) Notwithstanding the provisions of sub - Articles ( 1 ) and ( 2 ) of this Article , an agreement authorizing a lending bank to sell , by public auction , a pledge given to secure its loans , upon giving a prior notice of at least 30 days to the pledger and to transfer ownership of the pledge to the buyer shall be valid . 4 ) The sale of a pledge by the lending bank pursuant to sub - Article ( 3 ) of this Article shall be deemed executed by an authorized agent of the pledger . 5 . The provisions of Articles 394 - 449 of the Civil Procedure Code shall , mutatis mutandis , be applicable while the bank is exercising its power to sell the pledge . The bank shall be liable for any damages sustained by the pledger owing to its failure , in selling the pledge , to observe the relevant provisions of the Civil Procedure Code referred to in sub - Article ( 5 ) of this Article added after sub - Article ( 2 ) of Article 3060 . “ 3 ) Notwithstanding the provisions of sub - articles ( 1 ) and ( 2 ) of this Article , an agreement authorizing a lending bank to sell , by public auction , an im movable mortgaged to secure its loans , upon giving a prior notice of at least 30 days to the mortgagor and to transfer ownership of the im movable to the buyer shall be valid . The sale of an immovable by the lending bank pursuant to sub - Article ( 3 ) of this Article shall be deemed executed by an authorized agent of the mortgagor . The provisions of Articles 394 - 449 shall , mutatis mutandis , be applicable while the bank is exercising its power to sell the mortgaged immovable . The bank shall be liable for any damages sustained by the mortgagor owing to its failure , in selling the immovable , to observe the relevant provisions of the Civil Procedure Code referred to in sub - Article ( 5 ) of this Article . " 3 . Effective Date This Proclamation shall enter into force as of the 27 ' h day of February , 1997 . Done at Addis Ababa , this 27 " day of February , 1997 . PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA www . AfricanLawArchive . com * * * The African Law Archive * * * www . AfricanLawArchive . com