In a recent judgment dated 2 March 2009 the Court of Appeals decided that the immovables of a debtor or its guarantor seized by way of forced execution by creditor banks in lieu of their receivables should be exempt from VAT.  In this case, the creditor bank appealed the first degree court's judgement, which held the creditor bank liable for the payment of the VAT arising from the immovables that the creditor bank seized by way of forced execution in lieu of its receivables.  The Court of Appeals vacated the first degree court’s judgment and ruled that since Article 17 of the Value Added Tax Law states that “any transfer or delivery of the immovables and shares of the debtors or their guarantors to the banks in lieu of their receivables shall be exempt from VAT”, no VAT obligation can be imposed on the creditor bank as long as immovables are seized in lieu of receivables.