If the enforcement prceeding is conducted in favor of state budget or the one of an autonomous republic or a local self-governing unit, including the proceeding targeted at enforcing the decision stipulated by sub-Article "m" of Paragraph 2 of the law, and the property won't be realized at an initial repeated auction either, NBE applies to the state body with the proposal to deliver the realization-bound property to the ownership of state, autonomous/local self-governing unit in kind. The relevant body participating in the enforcement proceeding is informed about the proposal. The State Institution is obliged to accept or reject the proposal regarding the receipt of the property to state ownership in kind within 7 calendar days after getting the NBE application. In case the application has been rejected, NBE holds the second repeated auction and ensures the realization of the property in public terms.
If the application regarding the delivery of the property to state/autonomous/local self-governing unit in kind has been accepted within the deadline stipulated byArticle 2 of this Paragraph, NBE issues a relevant order and sends to the body that ensures the delivery of the ownership, the copy of the order is sent to the body participating in the enforcement proceeding.
The order on the delivery of the property to state/autonomous/local self-governing unit in kind should include the following:
a) Data about the property owner (debtor)
b) Naming/location of the property and its short description
c) data about the property receiver
d) Value of the property
The value of the property while delivering it in kind is set according to the starting price of the initial repeated auction, in compliance with the Georgian legislation. In case of unsecured demand, the rights on item registered in Public Registry in relation to the given property stay unchanged. In case of secured demand, including the right on tax mortgage registered on the property, the rights on item registered in Public Registry after the mortgage are abolished while delivering the property in kind. As a result of the process the State/autonomous republic/local self-govevrning unit substitutes an old owner and becomes a participant of all the legal processes concerning the ownership or the use of the property, if there is no other consideration stipulated by law.