Introductory Act to the Federal Act on Debt Collection and Bankruptcy (EGSchKG) - Enforcement Districts (EGSchKG)

1. Each municipal community forms a debt collection district with a debt collection officer and a deputy.

2. Two or more municipal communities may unite to form a debt collection district with the approval of the government council.

3. The government council may approve a different arrangement in the case of mergers or divisions of municipalities.

1. Court districts form the bankruptcy circuits, each with a bankruptcy officer and a deputy.

1. The district court appoints an extraordinary deputy if the enforcement officer and his deputy are unable to perform their duties.

2. The cantonal court appoints an extraordinary deputy if the bankruptcy officer and his deputy are unable to perform their duties.

1. The district courts are lower supervisory authorities according to the Federal Act on Debt Collection and Bankruptcy of April 11, 1889 (DCBA).

2. The upper cantonal supervisory authority is the Cantonal Court. It is authorized to have the administration of the debt collection and bankruptcy offices investigated on its own initiative by a delegation.

1. The Bankruptcy Office of Lucerne conducts the enforcements against the canton, municipalities, and other bodies of cantonal public law.

1. The disposal of real estate is the responsibility of the enforcement officer. He may enlist the assistance of the bankruptcy officer for this purpose.

**1. Deposit Institutions within the meaning of Articles 9 and 24 of the Debt Enforcement and Bankruptcy Act (SchKG) are all banking institutions subject to the Federal Act on Banks and Savings Banks of November 8, 1934.**

1. The lower supervisory authority is responsible for prohibitions of commercial representation pursuant to Article 27 paragraph 1 of the Swiss Debt Enforcement and Bankruptcy Act (SchKG).

1. Only those who possess the Lucerne trustee patent or an equivalent certification of examination are permitted to take on and execute trustee mandates according to the Federal Act on Debt Collection and Bankruptcy (SchKG), particularly in the execution of judicial composition agreements and in cases of moratoriums, as well as to take on and execute mandates in instances of court-ordered bankruptcy postponement.

2. Individuals may also be admitted to take on and execute trustee mandates in the execution of judicial composition agreements for debtors who, according to Article 39 paragraph 1 of the SchKG, are not subject to bankruptcy proceedings, and in mutual private debt settlements, if they demonstrate their professional qualification for the task in another manner.

3. Partnerships or legal entities may undertake trustee mandates, for which the trustee patent is required, provided that at least one patent holder is jointly responsible for the mandate.

1. The canton is liable for the damage unlawfully caused by officials and employees, their auxiliaries, non-official bankruptcy administrators, trustees, liquidators, supervisory and judicial authorities, as well as the police in the performance of the duties assigned to them by the Swiss Federal Debt Enforcement and Bankruptcy Act (SchKG).

2. Recourse against the parties responsible for the damage, for which the canton is liable, is determined according to the provisions of the cantonal Liability Act dated September 13, 1988.

3. Debt enforcement and bankruptcy officers and their deputies, as well as non-official bankruptcy administrators, trustees, and liquidators, must obtain liability insurance or provide proof that they are included in the municipality's liability insurance. The canton's court determines the amount of insurance required and verifies its conclusion.

1. The municipality of the debt enforcement district elects the debt enforcement officer and their deputy for a term of four years. The new election occurs in the same year as that of the municipal councilors. The term begins on September 1 following the election.

2. If a debt enforcement district consists of two or more municipalities, the election is conducted by the assembly of the respective municipal councils, which is chaired by the president of the most populous municipality. Any differing regulation by the municipalities in their legislative enactments remains reserved.

1. The Cantonal Court elects the bankruptcy officers and their deputies.

2. They can be elected for multiple districts.

1. As an officer or a deputy in bankruptcy and foreclosure proceedings, anyone who holds the certificate of competence issued by the Cantonal Court is eligible for election. This certificate is generally issued based on an examination taken by the applicant.

2. The Cantonal Court may issue a provisional certificate of competence to a suitable applicant. This provisional certificate becomes void if the applicant does not acquire the certificate of competence within the period set by the Cantonal Court.

3. The Cantonal Court may waive the examination partially or entirely for applicants who have equivalent certification or have otherwise demonstrated their professional qualifications.

4. The Cantonal Court issues an examination regulation, sets the examination fee, and appoints an examination commission in which the officers in bankruptcy and foreclosure proceedings are adequately represented.

1. The office may be held at most until the end of the month following the attainment of the age of 65.

1. The enforcement officer and their deputy receive for their duties, on their own account, the fees in accordance with the Fee Ordinance to the Federal Act on Debt Collection and Bankruptcy. Additionally, the municipalities of their enforcement district may provide them with a basic compensation.

2. The municipalities of the enforcement district may determine that the enforcement officer and their deputy shall receive a fixed salary and that the fees shall be paid into the municipal treasury.

1. The bankruptcy offices are operated at the expense of the state. The bankruptcy officials are remunerated, and the fees accrue to the state treasury.

2. The cantonal court designates the bankruptcy offices that are managed under the fee-based system. In the fee-based system, the bankruptcy official operates the bankruptcy office at their own expense. They collect the fees in accordance with the fee ordinance pursuant to the Debt Enforcement and Bankruptcy Act (SchKG).

3. The canton may provide bankruptcy officials, who operate the bankruptcy office under the fee-based system, with a base salary and an allowance in addition to the regular fees they receive. The cantonal court regulates the details in an ordinance.

1. Regarding civil servants and employees, the following disciplinary measures may be taken in the event of breaches of duty according to Article 14 of the Swiss Debt Collection and Bankruptcy Act (SchKG)

a. Reprimand,

b. Fine up to 1000 francs,

c. Suspension from duty for a period of no more than six months,

d. Dismissal from office.

2. The supervisory authorities are responsible for taking disciplinary measures. Dismissal from office may only be imposed by the higher supervisory authority.

3. Against any disciplinary decision of the lower supervisory authority, the affected parties may file a complaint with the higher supervisory authority within ten days.

1. Extraordinary or non-official bankruptcy administrations may be appointed, and the cantonal court can order an audit of their accounting at their expense.

1. The debt collection and bankruptcy officials, as well as the persons acting on their behalf, are entitled to file a criminal complaint with the law enforcement authorities if they ascertain a criminal offense during their activities according to the provisions of the Swiss Criminal Code of December 21, 1937, for which there are concrete grounds for suspicion. Obligations to report according to the Federal Act on Debt Collection and Bankruptcy remain reserved.

2. No release from the duty of confidentiality pursuant to § 52 of the Personnel Act of June 26, 2001, is required for filing such complaints.

1. A guardian is someone who holds the guardian certificate issued by the Cantonal Court.

1. The Administrator Patent is granted to applicants who

a. are legally competent and professionally trustworthy,

b. have demonstrated their qualifications by passing an administrator examination.

2. The Cantonal Court may waive the examination requirement for applicants possessing equivalent certification.

3. The Cantonal Court shall issue an examination regulation, determine the examination fee, and appoint an examination commission in which administrators are adequately represented.

1. If it turns out that a requirement necessary for the granting of the patent was not fulfilled or is no longer fulfilled (§ 19), the Cantonal Court may revoke the patent.

2. The patent shall be reissued upon request if the reason for revocation has ceased to exist.

3. The provisions of the Administrative Procedure Act of July 3, 1972, shall apply mutatis mutandis to the procedure and costs.

1. The Cantonal Court exercises supervision over the trusteeship system.

2. It may impose disciplinary measures under § 17 in cases of breaches of duty by patent holders or by third parties entrusted with trusteeship tasks.

3. If breaches of duty are related to legal representation, the disciplinary measures under § 11 of the Attorney Act apply.

4. Disciplinary liability exists regardless of a criminal proceeding or a civil lawsuit.

1. No cantonal legal remedy is available against the imposition of disciplinary measures pursuant to § 21 paragraph 2.

2. In proceedings pursuant to § 21 paragraph 3, the provisions of the Attorney's Act regarding the disciplinary procedure shall apply mutatis mutandis.

1. The fees and compensations that trustees can receive for their activities are determined by the Fee Ordinance pursuant to the Debt Enforcement and Bankruptcy Act (SchKG).

2. Insofar as trustees act as party representatives, the provisions of the Cost Ordinance of the Cantonal Court apply accordingly.

1. Complaints against Debt Collection and Bankruptcy Offices pursuant to Article 17 of the Swiss Debt Enforcement and Bankruptcy Act (SchKG) must be submitted in writing to the lower supervisory authority. They must include a motion and a statement of reasons.

2. The complaint instance will obtain the opinion of the concerned office and any opposing party, provided the complaint is not evidently unfounded.

3. The procedure is conducted in writing. The provisions of the Swiss Code of Civil Procedure of December 19, 2008, regarding summary proceedings (Art. 248 et seq.) apply mutatis mutandis. The procedural provisions of the SchKG remain reserved.

1. In the case of real estate liens under cantonal law, the amount of the lien not covered during the foreclosure of the property is treated as a personal debt in the real estate foreclosure and bankruptcy proceedings.

1. Enforcement officers and their deputies who were already in office at the time of this law's entry into force may continue to exercise their office without a certificate of competency until the end of the term in the year 2000.

1. The next elections for bankruptcy officials will take place in 1997 (with term commencing on July 1, 1997), and the subsequent ones will take place in the year 2000.

1. The following enactments are repealed

a. Law concerning the application of the Federal Law on Debt Collection and Bankruptcy of April 11, 1889, of November 30, 1915[15],

b. Law on the practice of the trustee profession of October 6, 1942[16].

1. The Court Organization Act of January 28, 1913, as well as the Trade Police Act of January 23, 1995, are amended in accordance with the Annex.

1. The law shall enter into force on January 1, 1997. It is subject to an optional referendum.