Legal issue: Whether good-faith mortgage lender may demand  that the mortgaged property (a flat) be foreclosed – in the context of legal relations arising before 1 July 2014?

Ratio decidendi: Good-faith mortgage lender may demand foreclosure. Although the rule of Article 335, Civil Code, in which the notion of good-faith mortgage lender is found, came into force on 1 July 2014, whereas the relations between parties precede it, this notion had already existed in the decisions of the Supreme Arbitrazh (Commercial) Court. Therefore, the legislation in force before 2014 already implied that the rights of mortgage lender could survive in case of invalidity of the transaction by which the owner (mortgagor) had acquired the property in question (i.e. the collateral), provided that the mortgage lender was unable, acting reasonably and with proper prudence, to discover the flaws of such transaction.