This is the notarial document in which, at the request of the creditor of an unpaid loan, the exact amount owed by the debtor for all concepts is determined and verified, with details of the specific calculations that determine that figure, thus taking into account all possible concepts (capital loaned, ordinary interest accrued, interest on arrears generated, or any other concept owed) that were established at the time the loan was originally contracted.
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It is a reliable document, drawn up by the Notary, which determines the outstanding and unpaid balance of a loan or credit at a certain date, i.e., the amount owed by the debtor for all concepts at that specific moment.
This document is essential in order to be able to claim this debt judicially, through the so-called executive process, when this has been expressly agreed in the loan contract in question.
Any creditor who is the holder of an unpaid loan may request the Notary Public to authorize the act of fixing the balance, as long as this procedure has been agreed upon in the loan contract.
Of course, if the creditor is not a company, but an individual person, and in the loan contract this way of proceeding in case of non-payment has been agreed, there is no impediment for the Notary to be requested to authorize the reliable document of liquidation.
It is not necessary for the creditor's representatives to go to the Notary's office to sign the deed, since the initial request signed by them already grants the Notary sufficient powers to issue said document without the creditor's intervention being necessary again.
In the first place, the creditor must address a request to the chosen Notary Public to carry out the requested work. This request will be made by means of a written request in the form of a letter, signed by the creditor, in which, accrediting his representation and legitimacy, he formally requests the Notary to authorize a settlement of the balance of an unpaid debt.
Together with this formal request, the creditor must accompany:
If all the documentation provided is correct, so that the necessary requirements are met (i.e., that the parties had agreed to this procedure in case of default on the loan they formalized) and the calculations have been made correctly, the Notary will authorize the document, making the positive result count by means of a diligence, in which he will express:
With all this, once the creditor already has the reliable document or the balance liquidation act, it will be able to incorporate the same to the executive judicial process, in order to obtain the intended executive protection and, in short, to recover the money that at the time it lent to the debtor and that has not been paid.
The Notary required, by operation of law, must verify that the amount expressed in the debtor's certification is correct, so that he must ensure that all the conditions (interest rate, calculation of the same, etc.) that the parties agreed in the loan contract have been applied.
Therefore, only if this is the case will the Notary Public authorize the balance settlement, while, on the other hand, if the settlement is not correctly carried out (because, for example, a higher amount is being claimed, undue interest is being applied, items not foreseen in the loan contract are being claimed, etc.) the Notary Public will refuse to authorize the settlement, with the result that the creditor will not be able to properly file the executive judicial process to claim his debt, since without this obligatory document this will not be possible.
Likewise, it must be taken into account that, in any case, if the settlement of the balance is authorized, but it contains a calculation error, the debtor party may point this out in the corresponding executive process, which, if applicable, may result in the enforcement order not being issued, since the exact amount due to be enforced has not been correctly determined.
In the event that the creditor entity has not made the appropriate notifications to the debtor (and to the guarantor, if any), the Notary's Office may make them on its behalf and attest it by means of a Notification Act.
In the event that the requesting creditor is a legal entity, the representative of the same who signs the request must provide the public deeds by virtue of which it can act in its name and on its behalf. Thus, the most usual will be the deeds of power of attorney that the legal entity has granted to its representative or, if applicable, deeds from which the position of that person in the company derives, such as the appointment of administrator.
Document that contains the formal request that the creditor addresses to the Notary, formally requesting him to authorize the act of fixing the balance in which the exact amount that the debtor owes at that moment for all the concepts is determined. Its usual form is in the form of a letter or writing addressed to the Notary who must authorize this reliable document.
The loan deed or notarized policy in which the loan contract in question was documented, in which all the details of the operation (participants, capital loaned, interest rate, term and form of amortization, and other agreed conditions) must be provided. In the event that there were several titles (because, for example, the initial ownership of the loan had been transferred to third party creditors or there had been novations of the same) it will be necessary to provide all of them.
Document signed by the creditor, in which he certifies the total amount owed by the debtor, with details of the various items that comprise it.
Accounting documents, signed by the creditor, containing, in detail, the calculations made by the creditor to determine the total amount due. By means of these documents, the Notary Public authorizing the certified settlement document will be able to verify whether these calculations have been made correctly, applying the financial mathematical formulas and the applicable interest rates, taking into account all the conditions stipulated in the defaulted loan contract.
