Article 64. Meeting the Claims of Creditors of a Liquidated Legal Person

1. When a legal person is being liquidated claims of its creditors shall be satisfied in the following order of priority after payment is made towards the current expenses required to carry out the liquidation:

- first of all satisfaction shall be given to claims of citizens to whom the liquidated legal entity is liable for a harm inflicted to their life or health, by means of capitalising relevant time-based payments and also on claims for compensation for a moral harm, for compensation in excess of the compensation for harm caused as a result of demolition or damage a capital development unit, failure to satisfy safety requirements while constructing a capital development unit and the requirements for ensuring the safe upkeep of a building or structure; 

- in the second turn shall be effected the settlements, involved in the payment of retirement allowances and the remuneration for the labour of persons who work or who have been working under a labour contract, and also those involved in the payment of fees to the authors of the results of intellectual activity.

- the third priority ranking category includes settlements of accounts for compulsory payments owing a budget or a non-budget fund;

- the fourth priority raking category included settlements of accounts with other creditors.

Paragraph 6 is abrogated.

Информация об изменениях:

See the text of Paragraph 6 of Item 1 of Article 64

In the event of liquidation of the banks raising citizens' funds, as first priority also the following shall be met: claims of the citizens who are creditors of the banks under contracts of bank deposit or bank account concluded with them or for their benefit, except for the contracts relating to the citizens' pursuance of entrepreneurial or another professional activity, in as much as it concerns the principal debt sum and due interest, claims of the organisation that does the mandatory insurance of deposits, in connection with the disbursement of compensation for deposits under a law on insurance for citizens' deposits in banks and claims of the Bank of Russian in connection with disbursements relating to citizens' deposits in banks in accordance with a law.

Creditors' claims for compensation for losses in the form of lost profit, collection of forfeit money (a fine, penalty), for instance for default on or improper performance of the duty to make mandatory payments, shall be met after the satisfaction of the claims of the creditors of Priority Ranks 1, 2, 3 and 4.

2. Claims of creditors of each priority ranking category are met after the claims of creditors of the preceding category have been satisfied in full, except for creditors' claims relating to obligations secured by a pledge of property of a legal entity in liquidation.

Creditors' claims relating to obligations secured by a pledge of property of a legal entity in liquidation shall be met with proceeds from the sale of the object of the pledge as a priority over other creditors, except for the obligations to the creditors of the first and second priority ranking categories for which claims had come into being before the conclusion of the pertinent contract of pledge.

Creditors' claims for obligations secured with a pledge of property of a legal entity in liquidation that have not been met with proceeds from the sale of the object of the pledge shall be satisfied together with the claims of creditors of the fourth priority ranking category.

3. If the property of a legal person in liquidation is insufficient, when such legal person in the cases envisaged by the present Code cannot be deemed unable to pay (bankrupt) the property of such legal person shall be distributed among the creditors of the relevant priority rank pro rata to the amount of the claims which are subject to satisfaction, except as otherwise established by a law.

4. In case the liquidation commission refuses to satisfy the creditor's claim or evades its consideration, the creditor shall have the right, until the approval of the legal entity's liquidation balance, to turn to the court with a claim against the liquidation commission. By the court decision, the creditor's claims may be satisfied at the expense of the remaining property of the liquidated legal entity.

5. Abrogated from September 1, 2014.

5.1. The following shall be deemed redeemed at the liquidation of a legal person:

1) the creditors' claims which have not been met due to the insufficiency of the property of the legal person in liquidation and have not been met with the property of the persons which bear subsidiary liability for such claims, if the legal person in liquidation in the cases envisaged by Article 65 of the present Code cannot be deemed unable to pay (bankrupt);

2) the claims which have not been recognised by the liquidation commission, unless the creditors in respect of such claims have brought action in a court;

3) the claims for which satisfaction to the creditors has been denied by a court's decision.

5.2. In the event of discovery of a piece of property of a liquidated legal person that has been removed from the comprehensive state register of legal entities, for instance as a result of such legal person having been deemed unable to pay (bankrupt) a person concerned or an empowered state body are entitled to file an application with a court for a procedure for distribution of the discovered property among the persons eligible for it to be ordered. Said property also shall include the liquidated legal person's claims to third persons, for instance those that have come into being due to a breach of the priority order for meeting creditors' claims due to which the person concerned has not received delivery in full. In this case, the court shall appoint a qualified receiver vested with the duty to distribute the discovered property of the liquidated legal person.

An application for a procedure for distribution of discovered property of a liquidated legal person to be ordered may be filed within five years after the time when information on termination of the legal person is entered in the comprehensive state register of legal entities. A procedure for distribution of discovered property of a liquidated legal person may be ordered if there are resources sufficient to implement that procedure and the possibility of distributing the discovered property among persons concerned.

A procedure for distribution of discovered property of a liquidated legal person shall be implemented according to the rules of the present Code for liquidation of legal persons.