BILL Proposed by Valeriu Stoica, Secretary of the Justice Department,
Liberal Party, June 1998

Law Regarding the Restitution in Kind or in Equivalency of the Properies Taken by the State after March 6, 1945.

General provisions

Article 1. Restitution in kind or by equivalency of some real estate taken by the State after March 6, 1945 is made under the provisions of the present law.
Article 2. (1) The real estate has been taken by the State with title if the legal provisions in force on the date of the take-over have been observed and applied.
(2) The following are considered as taken by the state without title:
- the real estate taken without observing the legal provisions in force on the date of the take-over; the real estate taken without a legal ground through orders of the local government bodies or State administration or in absence of any such orders;
- the real estate taken by confiscation of assets, if the court decision convicting the owner for felonies of political nature stipulated by the penal legislation between March 6, 1945 and December 22,1989 has been annulled;
- the real estate donated to the State, if the action/lawsuit annulling the donation has been accepted through a definitive and final decision of the court.
(3) Under the provisions of the present law, the Romanian or foreign physical or legal persons who's real estate have been taken over by the State without title preserved the capacity/attribute as owners they had on the date of the take-over.
Article 3 "Legal provisions in force on the date of the take-over" means stipulations of any of the normative documents listed in Apendix1, which is part of the present law.
Article 4 The real estates to which the normative acts listed in Appendix 1 refer to are considered taken over by the State without observing the legal provisions in force if, accordingly:
- on the date of the take-over the real estate was not in the exclusive property of the natural or legal person identified in the annex list of the normative document (or disposition) and published, with it or if the natural or legal person was excepted from the application of the respective (?) normative act;
- the juridical status of the real estate was not the one leading to the State right of ownership as stipulated in Article 68, paragraph 2 of Decree/Order No. 266/1948 concerning the organization of the Ministry of Public Education;
on the date of the take-over, the real estates in the patrimony of the former private drug stores belonged to the categories of persons listed in Decree 450/1953 for completing the Decree No. 418/1953;
- on the date of the take-over, the real estates other than agricultural land which is restituted according to the provisions of Land Law No. 18/1991 republished did not have the destination stipulated by Article 2 of Decree 83/1989 completing certain provisions of the Law No. 187/1945.

Article 5 (1) On the basis of the provisions of the present law, the following are entitled to restitution:
- natural persons who, on the date of the take-over with title, were owners or associates in ownership or shareholders of the legal person owning the real estate;
- natural persons who preserved their capacity/attribute as owners of the real estate taken without title or who were, on the date of the so performed take-over, associates or shareholders of the legal person owning the real estate;
- parishes or religious communities, for the real estate taken over by the State on the basis of Decree No. 176/1948 for the transfer to State ownership of the goods belonging to churches, congregations, communities or individuals, which served for fulfilling the functions - and maintaining the institutions of general, technical or professional education;
Romanian Academy, for the real estate taken over by the State on the basis of Article 68, paragraph 2 of Decree No. 198/1948 for the Statute of Organization and functioning of the Academy of the People's Republic of Romania;
- other legal persons owning the estates on the date of the take-over with title, which preserved their capacity/attribute as owners of the estates taken over by the State without title, if subsequent to the take over they uninterruptedly preserved their legal personality.
(2) The persons mentioned in paragraph (1) are not entitled to restitution based on the provisions of the present law if they received indemnification/compensations according to the international agreements concluded by Romania, concerning the settlement of unsettled financial matters, listed in the Appendix 2, which is part of the present law.

Article 6 (1) The heirs of natural persons also benefit from the provisions of the present law.
(2) The relatives entitled to successions who did not accept the inheritance are duly reinstated, in respect to the acceptance of the succession, to the right of real estate restitution. The application for restitution is equivalent to the acceptance of the succession.
Article 7 (1) If restitution is applied for by more than one entitled persons, the right ownership to real estate or of the value title compensation is obtain in fair shares, as provided below:
if restitution is made to the former owners or, accordingly, to the owners, the fair shares will be preserved as on the date of the take over of the real estate;
if restitution is made to the persons who had the capacity/attribute as associates or shareholders of the legal person owning the estate, the shares/quotas will be established in proportion with the number of shares possessed on the date of the estate repossession by the persons applying for the restitution;
if the restitution is made to the heirs, letters (a) or (b) of the present paragraph accordingly apply. The fair shares if the heirs of the former owner or as may be the case, owner, are established pursuant to common law;
(2) When one of the associates or shareholders applies for the restitution on the basis of one of these attributes, the amount of restitution to the legal person shall diminish in proportion with the fair share of his respective associate or shareholder;
Article 8 (1) Real estate are, in the meaning of the present law, lots of land with or without buildings on them, having any of the purposes listed in the Appendix 1. Restitution also applies, if it is the case, to the equipment and installations taken by the state together with the real estate and which have not been replaced or removed.
(2) The real estates shall be restituted in their condition on the date of the restitution.

Restitution in kind

Article 9 (1) The lots of land, with or without buildings on them, taken over by the State without title may be restituted in kind, under the provisions of the present law, no matter the citizenship of the natural person or the nationality of the legal person entitled to restitution according to Article 5.
(2) The lots of land, with or without buildings on them, taken over by the State with title cannot be restituted in kind to the foreign citizens or to the stateless persons. Romanian citizenship need exist the latest on the date of the county commission's decision ordering the restitution in kind.
Article 10 (1) The real estate shall be restituted in kind unless the entitled person opts for restitution by equivalency or restitution in kind is not possible.
(2) Restitution in kind of the real estate taken by the State is not possible if:
the real estate no longer exists on the date of coming into effect of the present law;
the real estate had been transformed so that it became new compared to the one taken over by the State;
the real estate has been taken over by the State with title and is necessary to the assurance of public order, defense or national security;
in the case stipulated in Article 19, paragraph 4.
Article 11 Restitution in kind is ordered even if the real estate's purpose on the date of the take over by the State has been changed before the date of the application for restitution.
Article 12 (1) The pertaining lot of land shall be restituted as determined on the date of take over by the State, at the same time with the restitution in kind of the building, except the areas occupied by or pertaining to other buildings and public utilities built with legal permits after that date.
(2) Empty lots of land shall be restituted to the entitled persons even if on the date of the take over by the State were occupied by buildings subsequently demolished.
(3) In the case of the real estates taken by the State without title, the person entitled to restitution is also entitled to compensations for the land excepted from restitution in kind and respectively for the demolished building.
Article 13 (1) The real estates expropriated in the public interest may be restituted in kind under the provisions of the present law, if the project of public interest for which it was expropriated was not accomplished
(2) If the building has been demolished, only the land restitution shall be made in kind, as for the building restitution shall be made by equivalency/compensation.
Article 14 (1) For the buildings taken over by the State with title, if the person entitled to restitution received compensations, in other cases than those stipulated in Article 5 restitution in kind is conditioned by the payment of a sum amounting to the updated value of the compensations received.
(2) This sum is due in three years terms, in the form of monthly installments.
(3) Default of payment of three monthly installments or default of payment of the entire sum at the end of the tree years term lead to retroactive annulment of the ownership of the restituted estate.
(4) In the case of the real estates taken over by the State without title, restitution in kind is not conditioned by the refunding of the compensations stipulated in paragraph 1.
Article 15 (1) If, at the date of the restitution, the real estate is object of a leasing contract concluded with observance of the law, by the State or the territorial administrative unit, the person entitled to restitution in kind takes over the rights and obligations of the landlord and must observe the leasing contract until the expiration date, but no longer than 5 years since the restitution date.
(2) The tenant has preemption right for buying the restituted real estate. This right must be exercised, under the sanction of loosing it, within 30 days from the date the owner notified the intention to sell.
(3) The provisions of paragraphs (1) and (3) also apply to franchising contracts. Contracts of "association in participation" concluded observing the commercial law become leasing contracts to which the special provisions for the protection of the tenants apply.
Article 17 (1) In the case of the estates with dwelling purposes the tenants are entitled to compensations for the increase in real estate's value achieved through improvements.
(2) If the estate being restituted had been taken by the State with title the obligation to compensate stipulated in paragraph 1 devolves upon the person entitled to restitution.
(3) If the estate being restituted had been taken over by the State without title the obligation to compensate stipulated in paragraph 1 devolves upon the State, provisions of Chapter III concerning restitution by equivalency applying. The amount of the compensations is set by an expert appraisal ordered by the county commission.
(4) Within the spirit of this law, improvements are all the necessary and useful expenses. The total amount of compensations is set to the updated value of the expenses, considering the wear and tear of the fittings (?) which shall be born by the tenants.
Article 18 (1) Public institutions carrying out their activity in real estate restituted in kind may hold them for a maximum period of 5 years, paying to the person entitled to restitution a rent set according to the law.
(2) The State has preemption right for buying these estates, under the provisions of Article 15, paragraph 2.
Article 19 (1) May be restituted in kind the real estate taken over by the State with or without title which are in the property, on the date of coming into effect of the present law, of a trading company with the State or an authority of the local public administration are shareholders or controlling associate and subject to privatization. In the case of the persons entitled to restitution under the provisions of Article 7, paragraph (1) letter (b), if applications for restitution in kind do not cover the value of the real estate the restitution shall be made by equivalency/compensation.
(2) The State Ownership Fund shall publish in the Official Monitor of Romania, the list of the trading companies subject to privatization within 30 days following the coming into effect of the present law. Within 90 days following the publication of the list the entitled persons must notify the State Ownership Fund of their intention to recover the real estate in kind. In these cases sales of shares or social parts of the trading companies possessing such real estate is made within the limits of the registered share capital value of the real estate subject of the notification deducted, under the sanction of annulment of the deed of conveyance.
(3) The real estate taken over by the State without title in the property of a trading agent privatized on the date of coming into effect of the present law may be restituted in kind under the provisions of Article 20.
(4) The real estate taken over by the State with title in the property of a trading company privatized on the date of coming into effect of the present law cannot be restituted in kind.
Article 20 (1) In the case stipulated in Article 19, paragraph 3, the State shall compensate the trading company through the State Ownership Fund by completing the registered share capital with the updated value of the shares or social parts corresponding to the recorded value of the estate.
(2) If privatization has been made by sale of assets to a natural person, the amount of compensations is set corresponding to the updated value of the selling price.
(3) The trading company or the natural person, as the case may be, may bring an action against the decision of the county commission setting the amount of compensations, under the provisions of Article 37.
Article 21 The court decisions ordering the restitution in kind of the real estates taken over by the State without title which became final and irrevocable prior to the coming into effect of the present law shall not be subject of appeal for annulment.

Restitution by equivalence

Article 22 Restitution by equivalency is made by granting compensations under the provisions of the present law if the person entitled to restitution opts for compensations or if restitution in kind is not possible as stipulated in Article 10, paragraph 2.
Article 23 (1) The entitled person' s right to compensations for a certain real estate is fully recognized even if, through the application of the present law benefits from restitution in kind or by equivalency of other real estate.
(2) Compensations are granted for buildings and the lots of land they are located on and, as the case may be, for equipment and installations taken over by the State at the same time.
Article 24 (1) In the case of the real estates taken over by the State with title, the amount of compensations is set corresponding to the market value of the real estate on the date of the restitution, the updated value of compensations already received being discounted, except for the cases stipulated in Article 5, paragraph 2.
(2) In the case of the real estates taken over by the State without title, the amount of compensations is set corresponding to the market value of the real estate on the date of the restitution.
Article 25 Within 90 days following the publication of the present law in the Official Monitor of Romania, the Ministry of Privatization and the Ministry of Justice shall elaborate the methodological standards for the valuation of the real estate subject to restitution by equivalency. These standards shall be approved by the Ministry of Finance and sanctioned by government decision.
Article 26 (1) The final decision of the county commission or the final judgment setting the compensation may be turned to account within 5 years following its notification, as provided below:
for purchasing shares or social parts of the trading company subject to privatization;
for purchasing assets from the trading company subjects to privatization.
(2) If opting for restitution by equivalency, the person entitled to restitution has preemption right for purchasing, as is the case, shares, social parts or assets from the trading company possessing the real estate taken over by the State.
(3) The amount of compensations is updated in proportion with the rate of inflation on the date of the turning to account as provided in paragraph (1).
(4) At the expiration of the 5 years period, if the decision could not have been turned to account as provided in paragraph (1), the compensations will be paid by the State at a value updated from the date of expiration, on terms established by a government decision.
Article 27 Payment of the due compensations as established by the present law shall be made by the Ministry of Finance. At the Ministry's order an extra-budgetary fund shall be established, which shall be supplied from:
a quota of the revenues cashed in by the State Ownership Fund from sales of trading companies' shares and from dividends;
the sums obtained by floating State loan for this purpose, under the provisions of the Law No 91/1993 on public debt.

Common procedural provisions. Infringements and sanctions.

Article 28 The county commission has the ability to solve the applications for restitution on the basis of documents and reports sent by local commissions, except the case stipulated in Article 2, paragraph 2 letter d), when the application for restitution is to be solved by a competent Court according to the law.
Article 29 (1) The application for restitution is filed with the local commission, in whose radius the real estate is located, by the entitled person, either personally or by a proxy with authentic letter of power of attorney during a period of no more than 12 months from the date this law goes into effect. In the situations mentioned in Article 5, paragraph (1) letter c) and d) the application for the restitution is filled by the person charged by the parish or the religious community, respectively by the entity charged by the Romanian Academy according to its own statute and in the case of other judicial persons by the person charged with the representation or by the proxy with special power of attorney.
(2) In the case stipulated in Article 2, paragraph (2) letter c) for the judicial decisions pronounced prior to the present law the period of 12 months starts at the time of entry into effect of the present law. For the judicial decision pronounced after the entry into effect of the present law, the period of 12 months starts on the date of issuance of the irrevocable decision by which the appeal in annulment was admitted.
(3) For the tenants entitled to compensation according to Article 17, paragraph (3) as well as in the case stipulated in Article 20, the period of 12 months starts on the date of the definitive decision of the county commission, by which the restitution in kind was admitted/approved.
(4) When the term stipulated in paragraph (1) was exceeded, the court, care upon request, replace within the term the person entitled, only for valid reasons and with only in the situation when at the date of the reinstatement within the term it is established that the restitution in kind is still possible according to this law.
Article 30 (1) The application shall contain the data identifying the applicant, physical or judicial person, and shall show the reason that entitles him to the restitution. The applicant could mention in the application in a stacked memo the reasons de facto and de jure on the basis of which the restitution is solicited.
(2) To the application should be attached a copy of the title or respectively the certificate of inheritance or in the situation mentioned in Article 6, paragraph (2) the certificates of civil status sharing the quality of inheritor. The copies will be certified as true to the original by the employee qualified to receive the application.
(3) In absence of the documents mentioned in paragraph (2) the person entitled can prove its right to the property or as may be the case, its quality as associate or shareholder through documents as:
the corresponding except from the appendix lists of the normative documents mentioned in Appendix 1 of the present law, the document filed when the real estate was surrounded as well as any document filed at the time of take-over of the real estate, if in it the property right is mentioned or as the case may be the status of associate;
the certificate of inheritor regarding the mention of the inclusion of the estate in the global inheritance, if express and detailed mention is made regarding the title of the deceased;
the registration documents with the financial organizations or other financial accounting leaders if their contents show the right to the property of the taxpayer;
other certified documents, of different form, by public functionaries, if it results that they received or has seen a copy, simple or certified of the title.
(4) Proof of the right to the property or as may be the case, of the status of shareholder or associate, provided under the conditions of paragraph (3) makes it opposing to the state and the authorities compatible to proceed with the restitution and to any other physical or judicial person. The in-opposability could be invoked only by the person who proves the right to property under the conditions mentioned in paragraph (2), to the extent it formulated the application for restitution under the conditions of the present law.
Article 31 (1) The secretary of the city/town hall is obligated to insure, within 10 days from entry into effect of the present law, the information of the persons entitled to restitution, by posting of the present law at the city or town hall accompanied by our excerpt of normative documents enumerated in Appendix 1 of the present law, furnished by the control public administration.
Article 32 (1) Within 30 days from the publication of the law is the "Official Monitor of Romania" the town councils, city or municipal councils, as well as those of the boroughs of the Bucharest municipality, as the case may be, shall propose the constitution of the local commissions for the application of this law.
(2) The local commissions for the application of this law will be approved by order of the county executive in maximum 15 days from the date of the proposal made by the local councils.
(3) The local commissions have the following attributions:
receive and register the applications for restitution accompanied by the documents attached by the applicant;
establish the judicial status of the real estate from the time of the take-over by the state to the moment of the restitution application, having to his and, the obligation to solicit from my public authority the necessary information and documents;
write a memo by which they recommend , motivating it, to the county commission, the approved admission or the refusal of the request for restitution;
transmit to the county commission, in maximum 60 days from its registration, the application for the restitution together with the accompanying the documents, including those obtained by exercising the attributions stipulated in letter d), as well as the memo written according to letter c).
Article 33 (1) The County commissions for application of the law is constituted by order of the county executive and has the following composition:
the president of the county council as president;
the general director of the county, director for public finances and of the state financial control, as member;
the director of the county directions for urbane, public works and territory management, as member;
a representative of the state property fond, as member;
a representative of the county council or of general council of the city of Bucharest, as member;
an attorney on behalf of the prefecture. The function of secretary is provided by the secretary of the county council
(2) Depending on the needs, the county executive prefect could include in the commission, other person with consulting status for special problems, without right to vote.
(3) The commission of the city of Bucharest is assimilated with the county commissions and is lead by the general mayor.
Article 34 (1) The amount of and the source for the compensation of the consultants and experts will be established by norms of application of the present law established per Article 46.
Article 35 (1) Within 90 days from receiving the documents and the memo from the local commission in compliance with Article 32, paragraph (3) the county commission pronounces, with majority of the notes of its members, a decision of approval or refusal of the application for restitution.
(2) The refusal of the application for restitution in kind, obligates the county commission to pronounce even the possibility of restitution by equivalence, establishing, in the affirmative, the amount of the compensation due under the conditions of Article 24 and 25.
(3) The decision is communicated to the applicant, as well as to the other interested persons, by certified letter with return receipt.
(4) When it is appreciated that the attributing of the local commission were not discharged adequately, regarding the establishment of the legal status of the real estate, the county commission may return the whole pile to the local commission in order to write a new report within 60 days.
Article 36 (1) The decision of the county commissions to approve the application for restitution should show, under penalty of annulment, that the restitution is of a real estate taken by the state with or without title.
(2) Third parties who suffered damages in their rights through the county commission decision and who did not need to address the local commission as they already had title to the property (real estate) cannot use other then the avenue of an action of common law demand, and not the procedure stipulated in this chapter.
Article 37 (1) The decision of the county commission, including the modification or, as the case may be, the annulment of its own decision by the county commission, can be contested by the interest persons, within 60 days from its publication, at the court within whose radius is the real estate in question is located. The decision of the court is definitive and can be contested through appeal at the Appellate Court. The county commission has a passive process quality, and when necessary, active, being legally represented by its president or on the basis of a conventional proxy, by one of the members, the assistance of an attorney not being necessary.
(2) The documents mentioned in Article 30, paragraph (2), (3) can be presented on appeal if they represent new data, according to the civil code of procedure. The documents furnished belated by the applicant by the authorities holding them and to whom are made the request prior to the registration of the application for restitution, are assimilate with new data.
(3) The definitive and irrevocable court decision is communicated to the applicant, the mayor of the town, city, municipality or borough of Bucharest, as is the case, as well as to the county commission who emitted the decision defeated in court in order to proceed with its execution.
(4) The execution of the decision of the county commission or as the case may be of the definitive and irrevocable court decision by which the restitution in kind was established would be done within 30 days from the date the application for the execution was addressed to the county commission. The responsibility for the execution belongs to the president of the county commission. His refusal to proceed with the execution will be sanctioned with a penalty of 50.000 lei per day of delay.
(5) In the situation the restitution by equivalence was approved, the decision of the country commission or as the case may be, the irrevocable decision of the court need mention the obligation of the national bank of Romania to issue to the person entitled the "value title" in the limit of the amount established for compensation.
Article 38 (1) The unfulfilled by the secretary of the city hall of the obligation stipulated in Article 31 constitutes an infraction and is sanctioned with a penalty of from 200.000 to 2 million lei. The infraction is established by the mayor at his own initiative or at the request of the person interested.
(2) The refusal of the leaders of the local public authorities or of the other judicial persons, to provide the local commission with the information and the documents mentioned in Article 32 paragraph (3) letter b) constitutes an infraction and is sanctioned with a penalty from 500.000 to 5 million lei. The president of the county commission at his own initiative or at the request of the interested person establishes the infraction.
(3) The application is filed and registered at the town or city hall or as may be the case at the county commission.
(4) The stipulations of paragraph (1) and (2) will be completed with the stipulation of law 32/1968 regarding the establishment and sanction of infractions, with its subsequent modification.
Article 39 (1) The amount of the compensation stipulated in Article 36, paragraph (4) and of the penalties stipulated in Article 37 will be established depending on the rate of inflation, by decision of the government at the request of the juristic minister.
Article 40 (1) The special procedures and those for obtaining the information and documents necessary for resolving the applications for restitution formulated under the present law as well as the satisfaction of the forms of publicity for real estate, are exempt of any taxes.