Date: March 8, 2002 E.C.

Legal Rule (Interpretation of Law):

1. Reasonable Time for Foreclosure Sale: While Proclamation 97/90 allows banks to sell mortgaged property through foreclosure, it doesn't specify a precise timeframe for conducting the sale. However, the bank must act within a reasonable time. Unreasonable delay in conducting the sale, especially if it results in increased interest accruing to the detriment of the mortgagor, can be considered a breach of the bank's duty to act in good faith. The bank has a duty to mitigate the debtor's losses.
2. Bank's Duty to Mitigate Loss: Even though the law doesn't specify a strict timeline, the bank has a general obligation to act in a commercially reasonable manner and to avoid causing unnecessary harm to the mortgagor. Delaying the sale for an extended period, especially when it leads to a significant increase in the debt due to accruing interest, can be seen as a failure to mitigate the loss and could give rise to a claim for damages.
3. Use and Possession of Mortgaged Property: If the mortgagor retains possession and use of the mortgaged property during the period of delay in the foreclosure sale, they cannot claim damages for the increased interest. Their continued use of the property is considered a benefit that offsets any potential harm caused by the delay. Essentially, if they're profiting from the property, they can't claim harm from the delayed sale.
4. No Damages for Self-Use: A mortgagor cannot claim damages for a delayed foreclosure sale if they themselves were using the property during the delay. The rationale is that the delay benefited them by allowing them continued use of the property. They cannot have both the benefit of using the property and a claim for damages based on the delay.
5. Rejection of Inapplicable Arguments: Arguments that the bank can delay a sale indefinitely until the statute of limitations expires are incorrect. While the bank has the right to sell the property to recover the debt, they must do so within a reasonable time, and they cannot use delay tactics to unfairly increase the debt burden on the mortgagor, especially when the mortgagor is in possession of the property.