Supreme People's Court's Several Provisions on the Restricting High-Spending and Related Spending by Persons Subject to Enforcement

Title: Supreme People's Court's Several Provisions on the Restricting High-Spending and Related Spending by Persons Subject to Enforcement
Promulgating Entities: Supreme People's Court
Reference number: 
Promulgation Date: 7/20/2015
Expiration date: 
Source of text: 人民法院报2015年7月22日第02版
2010年5月17日最高人民法院审判委员会第1487次会议通过，根据2015年7月6日最高人民法院审判委员会第1657次会议通过的《最高人民法院关于修改〈最高人民法院关于限制被执行人高消费的若干规定〉的决定》修正，该修正自2015年7月22日起施行）

These Provisions are drafted on the basis of the relevant provisions of the "P.R.C. Civil Procedure Law" together with the practice experience of the people's courts in enforcement work, so as to further increase the power of enforcement, to promote the establishment of the social credit system, and to protect the lawful rights and interests of persons applying for enforcement and of persons subject to enforcement , to the greatest possible extent.

Article 1: Where persons subject to enforcement do not perform the payment obligations set out by an effective legal document in accordance with the written enforcement notification, the people's courts may employ measures to restrict their spending, restricting high-spending and spending not necessary for their livelihood or businesses.

The people's courts shall adopt measures restricting the spending of persons who are entered into the List of Judgment Defaulters.

Article 2: When the people's courts decide to take measures to restrict spending, they should consider factors such as whether the person subject to enforcement has conduct that is non-performance, avoidance of performance or refusing performance, and their capacity to perform.

Article 3: Where the person subject to enforcement is a natural person, after measures are employed to restrict their spending, they must not exhibit the following high-spending conduct or spending that is not necessary for life and work:

(1) Choosing airplanes, soft sleeper trains, or ship berths in second-class or higher, when travelling;

(2) Having high-spending at venues such as star-rated hotels, inns, nightclubs, golf courses;

(3) purchasing real property or newly constructing, expanding, or high-end redecorating houses;

(4) leasing venues for work such as high-end office buildings, hotels, apartments.;

(5) purchasing vehicles not required for business operations ;

(6) travel and vacations;

(7) having children attend high-cost private schools;

(8) paying higher premiums for insurance and financial management products;

(9) High-spending not necessary for life or work such as taking any seats in G bullet trains, or first class or higher seats in other bullet trains.

Where the person subject to enforcement is a unit, after measures are employed to restrict their spending, the person subject to enforcement and its legally-designated representatives, principle responsible parties, personnel directly responsible for impacting debt performance, and the person with actual control must not carry out the conduct in the preceding paragraph. Where personal assets are used for private spending to carry out the conduct provided for in the preceding paragraph, an application may be made to the enforcement court. Where it proves true upon the enforcement court's review, it should be permitted.

Article 4: A written application for measures restricting spending is generally submitted by the person applying for enforcement , and is reviewed and decided upon by a people's court; when necessary, the people's court may make a decision in accordance with its authority.

Article 5: People's courts deciding to employ measures for restricting spending shall issue an order restricting spending to the person subject to enforcement. Orders restricting spending are signed by the president of the people's court. Orders restricting spending shall clearly indicate content such as the time period, project, and legal consequences.

Article 6: Where people's courts decide to employ measures restricting spending, they may, on the basis of case needs and the situation of the person subject to enforcement, send a notification of enforcement assistance to units with an obligation to assist in investigations and enforcement, and may also make a public announcement on relevant media.

Article 7: Fees for public announcements of spending restriction orders are borne by the person subject to enforcement; where the person applying for enforcement applies to have the announcement made on the media, they shall make the advance payment for the announcement.

Article 8: Where persons subject to enforcement who have had their spending restricting carry out spending activities prohibited by these Provisions because they are necessary for their livelihood or business, they shall submit an application to the people's courts, and may carry on after receiving permission.

Article 9: Where during the period for which spending is restricted, persons subject to enforcement provide a truly effective guarantee or have the consent of the person applying for enforcement, the people's courts may release a spending restriction order; where the person subject to enforcement completes the obligations set in the effective court document, the people's courts shall promptly release the spending restriction order by notice or announcement within the scope of article 6 of these Provisions.

Article 10: People's courts shall set up a telephone number or mailbox for reports, and conduct review and verification of reports by applicants for enforcement and the public on violations of article 3 of these Provisions by persons subject to enforcement whose spending has been restricted.

Article 11: Where it has been verified that violations of a spending restriction orders by persons subject to enforcement are conduct of refusing to perform on a judgment or ruling of a people's court that has taken legal effect, detention or fines are given in accordance with article 111 of the "PRC Civil Procedure Law"; where the circumstances are serious and a crime is constituted, criminal liability is pursued in accordance with law.

Where after relevant units have received an enforcement assistance notification from the people's courts, but still allow persons subject to enforcement to carry out the high-spending activity or spending not necessary for their livelihood or business, the people's courts may pursue legal responsibility in accordance with article 114 or the "PRC Civil Procedure Law".