Document from CIS Legislation database © 2003-2019 SojuzPravoInform LLC

LAW OF UKRAINE

of October 2, 1992 No. 2654-XII

About pledge

(The last edition from 03-07-2018)

Section I General provisions

Article 1. Concept of pledge

Pledge is method of providing obligations if another is not established by the law.

Owing to pledge the creditor (pawnbroker) has the right in case of non-execution by the debtor (pledger) of the obligation provided with pledge to have satisfaction from the cost of pledged property mainly before other creditors.

Pledge arises based on the agreement, the law or the judgment.

Article 2. Legislation of Ukraine on pledge

This Law determines basic provisions about pledge.

The pledge relations which are not provided by this Law are regulated by other acts of the legislation of Ukraine.

Article 3. Pledge application

With pledge any really existing or future requirement not contradicting the legislation of Ukraine, in particular, following from the loan agreement, the credit, purchase and sale, lease, cargo hauling, etc. can be provided.

Pledge can take place concerning requirements which can arise in the future, under condition if there is agreement of the parties on the amount of providing with pledge of such requirements.

Pledge has derivative nature from the obligation provided to them.

Article 4. Pledge subject

The property and property rights can be subject of pledge.

The property which according to the legislation of Ukraine can be alienated by the pledger and on which collection can be turned can be subject of pledge.

The property which will become property of the pledger after the conclusion of the agreement of pledge, including products, fruits and other profit (future harvest, cattle issue, etc.) if it is provided by the agreement can be subject of pledge.

Cannot be subject of pledge:

the cultural values which are objects of the right of the state-owned or municipal property and brought or subject to entering in the State register of national cultural property;

the monuments of cultural heritage entered in the List of monuments of cultural heritage which are not subject to privatization

The requirements having personal nature, and also other requirements which pledge is forbidden by the law cannot be subject of pledge.

Objects of state-owned property which privatization is forbidden by legal acts, and also property complexes of the state companies and their structural divisions which are in process of corporatisation cannot be subject of pledge.

Their goods in turnover or in conversion can be subject of pledge of the companies of the state pattern of ownership which privatization is forbidden by legal acts and their structural divisions which are in process of corporatisation.

Hostels as real estate units, housing estates and/or their parts on which operation of the Law of Ukraine "Expatiates on ensuring realization of housing laws of inhabitants of hostels cannot be subject of pledge.

Article 5. Pledge of property

Pledge of property covers its accessories and inseparable fruits if other is not provided by the law or the agreement. Pledge of property can include separable fruits only in the cases, limits and procedure provided by the law or the agreement.

Pledge of property can be performed by transfer of the tovarorasporyaditelny document (the bill of lading, the warehouse certificate - option, etc.) to the creditor.

Pledge of securities can be performed by transfer to their pawnbroker or to the deposit of notary office of the private notary or bank.

Article 6. Pledge of the property which is in common property

The property which is in common property can be pledged only with the consent of all owners.

The property which is in common ownership (shares, shares) can be independent subject of pledge on condition of its allocation in nature.

Article 7. Zameta of pledge subject

Replacement of subject of pledge can be performed only with the consent of the pawnbroker if another is not established by the agreement or the law. The pledge subject replacement procedure in case of pledge of goods in turnover or in conversion is regulated by the Section III of this Law.

Article 8. Risk of accidental destruction or accidental damage of subject of pledge

The risk of accidental destruction or accidental damage of subject of pledge is born by the owner of pledged property if another is not established by the agreement or the law.

In case of accidental destruction or accidental damage of subject of pledge the pledger upon the demand of the pawnbroker shall provide equivalent subject or if it is possible, to renew the destroyed or damaged pledge subject.

Article 9. Ownership of pledged property

The law or the agreement provide finding of pledged property in ownership of the pledger, pawnbroker or the third party.

Article 10. Insurance of subject of pledge

If the subject of pledge is not subject to compulsory insurance, he can be insured with the consent of the parties for agreed sum, but it is no more than its market value.

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Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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