Amendment of the Civil Code

(Act of the National Council of the Slovak Republic No. 261/2001 Coll. amending and supplementing the Act No. 40/1964 Coll., the Civil Code, as amended)

This amendment of the Civil Code (the ``Amendment'') supplements and changes provisions on termination of lease of flat, provisions of flat substitutes, cancels bearer deposit books and consequently newly regulates related provisions of the Civil Code (the ``Act'').

In case of termination of a lease of flat (the ``Lease'') by death of a lessee which is not in a co-lease of married couple the Lease is automatically transferred, under conditions stated by the Act, to the lessee's children, grand children, parents, siblings, son-in-law, daughter-in-law, or to persons who lived with the lessee in the shared household and took care of it, or they were financially dependent on the lessee. According to the Amendment, a lessor has the right to file an application with a court asking for declaring the transfer of the Lease invalid, if he believes conditions of the transfer of the Lease were not satisfied.

The Amendment cancels the possibility of automatic prolongation of the Lease which is agreed for a limited period of time and which was previously possible in case that the lessee used a flat after termination of the Lease and the lessor did not file an application with a court asking for removal of the lessee from the flat within 30 days.

Since the effectiveness of the Amendment, it will be legally clear that the Lease terminates by expiry of a lease period, provided that a notice was given by the lessor in a written form, and the notice period is three months starting from the first day of the month following the month in which the notice was delivered to the lessee. Enumeration of reasons for which the lessor can give a notice is not changed, except for the following three reasons which were cancelled: 1) the lessee has two flats, 2) the lessee does not use the leased flat, and 3) another person which owns or leases non-residential premises, which are in a constructional or functional connection with the leased flat, wishes to lease the flat.

The Amendment stipulates a protection period which lasts six months and prolongs the notice period in case of a notice given to the lessee who did not pay the rent or payment for services provided in connection with the use of the flat, and he proves that he was in a material distress for objective reasons on the day of the notice delivery. Provided that such lessee will pay the owed rent to the lessor before expiry of the notice period, or he concludes an agreement with the lessor on a manner of its payment, the reason for the notice is considered to be ceased.

The provision which stipulated that the lessor could give a notice always only with an approval of court has been changed essentially. Since the effectiveness of the Amendment, the approval of court with the notice is not required.

The lessee has the right to file an application with a court asking for declaring the invalidity of the notice within three months following the day of its delivery. Effects of the notice come into existence only after the court's resolution, refusing the application becomes enforceable.

The Amendment also supplements that in case of deposits in banks, a depositor has the right to dispose with the deposits only after proving his identity. The possibility of issue of bearer deposit books has been cancelled.

This Amendment comes in force from 1 September  2001.

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