STS 2013-05-09 (excerpt). Mortgage and Floor Clause.

Author: IN DIEM Documentation Service.
Categories: Banking Law. Mortgage. Floor Clause.
Date: March, 2014

As is publicly known, the Plenary Session of the Civil Chamber of the Supreme Court declared the nullity of mortgage floor clauses in cases where there is a lack of transparency. That is, all those in which sufficient information was not provided to clients when contracting the mortgage.

In this regard, the Civil Chamber, presided over by His Excellency Juan Antonio Xiol, issued a RULING DATED MAY 9, 2013. This RULING, however, after being issued, was subject, on the one hand, to a request for clarification and, on the other, to an incident of nullity, which were resolved by ORDER of June 3, 2013, and Order of November 6, 2013, respectively.

The CGPJ press release recalled that STS 2013-05-09 would be mandatory in Spanish courts.

IN DIEM Lawyers is currently, through its specialized banking law area, carrying out numerous claim actions against most banking entities, with excellent results.

The IN DIEM Documentation Service, in response to information requests, publishes an excerpt from STS 2013-05-09.