1. A court may order that the registration of the mortgage or lien over the assets of the debtor in respect of whose debts a decision has been issued to initiate bankruptcy proceedings regarding its debts vis-à-vis the creditors be invalid, if the registration is made after the cessation of payment date, provided that it is proven that the creditor knows that the debtor has ceased to pay its debts. 2. The provision of Clause (1) of this Article shall not apply if the mortgage and lien rights were registered for the purpose of determining an existing debt secured by the same rights over the same assets, and these rights were registered as security for the existing debt at a date prior to the cessation of payment date, or where the registration was carried out in implementation of a ratified contract at a date prior to the cessation of payment date. 3. The creditor who holds the next mortgage to the mortgage decided unenforceable takes the rank of this mortgage. However, he is not given from the price resulting from the sale of the mortgaged asset other than what he would have obtained assuming the previous mortgage was enforceable, and the difference goes to the group of creditors.
Interpretation and application must be checked against the official text and current version.