Breach of the rules on non-cash disbursement of a secured loan (Art. 153¹⁰)

I disbursed a loan in cash. Am I automatically fined GEL 10,000?

No. Paragraph 1 of the article provides for a warning on the first occasion, not a fine. The GEL 10,000 fine under paragraph 2 arises only if the ground of the offence is not removed within 30 calendar days of that warning.

What exactly do I have to do inside the 30 days?

The note to the article names two options: terminate the loan agreement, or amend the part of it that breaches Article 624¹ of the Civil Code. Either way, make sure the document is dated and that the date falls inside the window, because that document is your proof.

Does this article apply to banks and licensed lenders?

Paragraph 1 excludes entities that are subject to supervision by the National Bank of Georgia under the Organic Law "On the National Bank of Georgia". Whether a particular institution sits inside that exclusion is a question to check against its own regulatory status.

I paid the fine. Is the matter closed?

Not necessarily. Under paragraph 3, if the same ground is still in place 30 calendar days after the fine was imposed, the person is fined again. Paying does not by itself change the loan agreement, and it is the agreement that the note treats as the cure.

How much is the repeat fine?

Paragraph 3 provides for repeat fining but does not state a separate figure for it. The amount in your case therefore has to be read from the decision actually issued against you rather than assumed from paragraph 2.

4 min·22 Aug 2026

What Article 153¹⁰ actually covers

Article 624¹ of the Civil Code of Georgia requires a secured loan to be disbursed in the form of non-cash settlement. Article 153¹⁰ of the Code of Administrative Offences is the enforcement side of that requirement: it sets out what follows when a secured loan is handed over in cash instead of being transferred to an account. If you lent money against security and the funds moved in cash, or if the loan agreement itself provides for cash disbursement, the conduct falls within this article.

The scope is narrow, and that matters. Article 153¹⁰ says nothing about the interest rate, the term of the loan, the collateral, or the fairness of the bargain. Its only subject is the form in which the money was disbursed.

Who it applies to, and who is carved out

The first paragraph defines its subject partly by exclusion, and the exclusion is a substantial one. For that reason the first question in a case under this article is often not whether the rule was broken, but whether the article reaches you at all.

Liability falls on the person who breached the non-cash disbursement requirement of Article 624¹ of the Civil Code of Georgia.
The article expressly does not apply to entities subject to supervision by the National Bank of Georgia under the Organic Law of Georgia "On the National Bank of Georgia".
In practice the provision is therefore aimed at lenders outside that supervisory perimeter.

Updated: 13 Nov 2026

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