diff --git a/smp-docker/images/tomcat-mysql/Dockerfile b/smp-docker/images/tomcat-mysql/Dockerfile
index 3d7ac3d4f898e548bdcfa4dc55746d5a4e7b3f35..7a862ae190c2fcc6fb9f5f0725f80f014e7c3135 100755
--- a/smp-docker/images/tomcat-mysql/Dockerfile
+++ b/smp-docker/images/tomcat-mysql/Dockerfile
@@ -54,6 +54,8 @@ RUN apt-get update \
     && echo "datasource.jndi=java:comp/env/jdbc/eDeliverySmpDs" >  $SMP_HOME/apache-tomcat-$TOMCAT_VERSION/smp/conf/smp.config.properties   \
     && echo "\nAdd init parameters" >>  $SMP_HOME/apache-tomcat-$TOMCAT_VERSION/smp/conf/smp.config.properties   \
     && echo "\nauthentication.blueCoat.enabled=true" >>  $SMP_HOME/apache-tomcat-$TOMCAT_VERSION/smp/conf/smp.config.properties  \
+    && echo "\nsmp.truststore.password={DEC}{test123}" >>  $SMP_HOME/apache-tomcat-$TOMCAT_VERSION/smp/conf/smp.config.properties  \
+    && echo "\nsmp.keystore.password={DEC}{test123}" >>  $SMP_HOME/apache-tomcat-$TOMCAT_VERSION/smp/conf/smp.config.properties  \
     && sed -i -e "s/127.0.0.1/0.0.0.0/g" /etc/mysql/mysql.conf.d/mysqld.cnf   \
     && mkdir /opt/jacoco  \
     && curl -o /opt/jacoco/jacoco-agent.jar http://central.maven.org/maven2/org/jacoco/org.jacoco.agent/$JACOCO_VERSION/org.jacoco.agent-$JACOCO_VERSION-runtime.jar
diff --git a/smp-docker/images/weblogic-12.2.1.3-smp/container-scripts/deploySMPToDomain.sh b/smp-docker/images/weblogic-12.2.1.3-smp/container-scripts/deploySMPToDomain.sh
index 61fa1b4a7de89333e9ea23454464c942eb983172..e74f9a022fab413b859e088f405030c5c98d992a 100755
--- a/smp-docker/images/weblogic-12.2.1.3-smp/container-scripts/deploySMPToDomain.sh
+++ b/smp-docker/images/weblogic-12.2.1.3-smp/container-scripts/deploySMPToDomain.sh
@@ -10,9 +10,11 @@ fi
 
 # create smp property file
 echo "hibernate.dialect=org.hibernate.dialect.Oracle10gDialect" > "$DOMAIN_HOME/classes/smp.config.properties"
-echo "datasource.jndi=jdbc/cipaeDeliveryDs" >> "$DOMAIN_HOME/classes/smp.config.properties"
-echo "authentication.blueCoat.enabled=true" >> "$DOMAIN_HOME/classes/smp.config.properties"
-echo "log.folder=./logs/" >> "$DOMAIN_HOME/classes/smp.config.properties"
+echo "\ndatasource.jndi=jdbc/cipaeDeliveryDs" >> "$DOMAIN_HOME/classes/smp.config.properties"
+echo "\nauthentication.blueCoat.enabled=true" >> "$DOMAIN_HOME/classes/smp.config.properties"
+echo "\nsmp.truststore.password={DEC}{test123}" >> "$DOMAIN_HOME/classes/smp.config.properties"
+echo "\nsmp.keystore.password={DEC}{test123}" >> "$DOMAIN_HOME/classes/smp.config.properties"
+echo "\nlog.folder=./logs/" >> "$DOMAIN_HOME/classes/smp.config.properties"
 
 # create weblogic classpath to classes folder
 echo "export CLASSPATH=\${CLASSPATH}:\${DOMAIN_HOME}/classes" >> "$DOMAIN_HOME/bin/setDomainEnv.sh"
diff --git a/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/config/PropertyInitialization.java b/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/config/PropertyInitialization.java
index abb36041f2dd90f113ae18217ab71afb73ae64e4..ba002f235899f2a72fe2490b49bc19766051f0bc 100644
--- a/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/config/PropertyInitialization.java
+++ b/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/config/PropertyInitialization.java
@@ -187,7 +187,7 @@ public class PropertyInitialization {
         if (sigPath != null) {
             settingsFolder = new File(sigPath).getParentFile();
         } else {
-            settingsFolder = new File("");
+            settingsFolder = new File(CONFIGURATION_DIR.getDefValue());
         }
         return settingsFolder;
     }
@@ -360,9 +360,16 @@ public class PropertyInitialization {
         } else {
             File settingsFolder = calculateSettingsPath(fileProperties);
             // set absolute path
+
             absolutePath = settingsFolder.getAbsolutePath();
         }
 
+        File confFolder = new File(absolutePath);
+        if (!confFolder.exists()) {
+            LOG.warn("Configuration folder {} not exists. Folder will be created!", confFolder.getAbsolutePath());
+            confFolder.mkdirs();
+        }
+
         LOG.info("Generate new keystore to folder: " + absolutePath);
         // add configuration path
         storeDBEntry(em, CONFIGURATION_DIR, absolutePath);
diff --git a/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/data/ui/enums/SMPPropertyEnum.java b/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/data/ui/enums/SMPPropertyEnum.java
index 798bbc5ad0e56fd9407b346685f1602967cc310e..7d675abd2bc3eda107509e7d9e1744a5a3733e8f 100644
--- a/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/data/ui/enums/SMPPropertyEnum.java
+++ b/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/data/ui/enums/SMPPropertyEnum.java
@@ -43,7 +43,7 @@ public enum SMPPropertyEnum {
     TRUSTSTORE_FILENAME("smp.truststore.filename","","Truststore filename ", false, false , SMPPropertyTypeEnum.FILENAME),
     CERTIFICATE_CRL_FORCE("smp.certificate.crl.force","false","If false then if CRL is not reachable ignore CRL validation", false, false , SMPPropertyTypeEnum.BOOLEAN),
 
-    CONFIGURATION_DIR("configuration.dir","./","Path to the folder containing all the configuration files (keystore and encryption key)", true, false , SMPPropertyTypeEnum.PATH),
+    CONFIGURATION_DIR("configuration.dir","smp","Path to the folder containing all the configuration files (keystore and encryption key)", true, false , SMPPropertyTypeEnum.PATH),
     ENCRYPTION_FILENAME("encryption.key.filename","encryptionPrivateKey.private","Key filename to encrypt passwords", false, false , SMPPropertyTypeEnum.FILENAME),
     KEYSTORE_PASSWORD_DECRYPTED("smp.keystore.password.decrypted","","Only for backup purposes when  password is automatically created. Store password somewhere save and delete this entry!", false, false , SMPPropertyTypeEnum.STRING),
     TRUSTSTORE_PASSWORD_DECRYPTED("smp.truststore.password.decrypted","","Only for backup purposes when  password is automatically created. Store password somewhere save and delete this entry!", false, false , SMPPropertyTypeEnum.STRING),
diff --git a/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/utils/PropertyUtils.java b/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/utils/PropertyUtils.java
index 27ee97373458147d8853c147b3b38e980212e00c..b3bfd418f42e7a972c96326da3fedce9919d0914 100644
--- a/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/utils/PropertyUtils.java
+++ b/smp-server-library/src/main/java/eu/europa/ec/edelivery/smp/utils/PropertyUtils.java
@@ -4,9 +4,12 @@ import eu.europa.ec.edelivery.smp.data.ui.enums.SMPPropertyEnum;
 import eu.europa.ec.edelivery.smp.data.ui.enums.SMPPropertyTypeEnum;
 import eu.europa.ec.edelivery.smp.exceptions.ErrorCode;
 import eu.europa.ec.edelivery.smp.exceptions.SMPRuntimeException;
+import eu.europa.ec.edelivery.smp.logging.SMPLogger;
+import eu.europa.ec.edelivery.smp.logging.SMPLoggerFactory;
 import org.apache.commons.lang3.StringUtils;
 import org.apache.commons.validator.routines.EmailValidator;
 import org.apache.commons.validator.routines.UrlValidator;
+import org.springframework.security.authentication.AuthenticationProvider;
 
 import java.io.File;
 import java.net.MalformedURLException;
@@ -17,6 +20,8 @@ import java.util.regex.PatternSyntaxException;
 
 public class PropertyUtils {
 
+
+    private static final SMPLogger LOG = SMPLoggerFactory.getLogger(PropertyUtils.class);
     private  static UrlValidator urlValidator =  new UrlValidator(new String[]{"http", "https"}, UrlValidator.ALLOW_LOCAL_URLS);
 
 
@@ -69,6 +74,12 @@ public class PropertyUtils {
                 }
             case PATH: {
                 File f = new File(value);
+                if (!f.exists()) {
+                    LOG.warn("Folder {} not exists. Try to create the folder.", f.getAbsolutePath());
+                    if (f.mkdirs()){
+                        LOG.info("Folder {} created.", f.getAbsolutePath());
+                    };
+                }
                 return f.exists() && f.isDirectory();
             }
             // nothing to validate
diff --git a/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/config/PropertyInitializationTest.java b/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/config/PropertyInitializationTest.java
index 5b6992f222aa9ab0df88314a18ad643bf9734472..a205f3bbb9b6ad8e75463e38a5d704eb421732c2 100644
--- a/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/config/PropertyInitializationTest.java
+++ b/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/config/PropertyInitializationTest.java
@@ -131,7 +131,7 @@ public class PropertyInitializationTest {
         // when
         File f = testInstance.calculateSettingsPath(p);
         // then
-        assertEquals((new File("")).getAbsolutePath(), f.getAbsolutePath());
+        assertEquals((new File("smp")).getAbsolutePath(), f.getAbsolutePath());
     }
 
     @Test
diff --git a/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/utils/PropertyUtilsTest.java b/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/utils/PropertyUtilsTest.java
index 1b900fda87e55b11fac91f69229bbc0fc659cb89..de8c50941ce8b336bd58a2229f33358f63171e5a 100644
--- a/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/utils/PropertyUtilsTest.java
+++ b/smp-server-library/src/test/java/eu/europa/ec/edelivery/smp/utils/PropertyUtilsTest.java
@@ -36,7 +36,7 @@ public class PropertyUtilsTest {
                 {EMAIL, "test@coms.fs", false, false},
                 {FILENAME, "myfilename.txt", true, true},
                 {PATH, "./", true, true},
-                {PATH, "./notexits-tst", false, true},
+                {PATH, "./notexits", true, true}, // path will be created
         };
     }
 
diff --git a/smp-webapp/src/main/smp-setup/smp.config.properties b/smp-webapp/src/main/smp-setup/smp.config.properties
index db0fff9677a835a78ca9b6d7cd99face43e54a75..e8156c3ea4d1755f611e0e6706e27eccc16be3eb 100644
--- a/smp-webapp/src/main/smp-setup/smp.config.properties
+++ b/smp-webapp/src/main/smp-setup/smp.config.properties
@@ -134,7 +134,7 @@ log.folder=../logs/
 # smp.certificate.crl.force=false
 
 # Path to the folder containing all the configuration files (keystore and encryption key)
-# configuration.dir=./
+# configuration.dir=./smp/
 
 # Key filename to encrypt passwords
 # encryption.key.filename=encryptionPrivateKey.private