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Draft Law of Ukraine
“On Securing Creditors’ Claims and Encumbrances Registration”
This draft provides for setting up the State registry of encumbrances on property. It is anticipated that any encumbrances on property will be registered in this State registry. Compulsory state registration shall be established for:
•
any encumbrances established by relevant state bodies, including tax pledges, arrest of property, encumbrances imposed by court to secure the claim etc.;•
any encumbrances on real estate.Other encumbrances on property will be registered in the State registry of encumbrances on property per the application of the property owner or encumbrancer.
In order to register encumbrance on property with the State registry it is necessary to file an application indicating:
•
name, address and number that identifies the property owner and the person for whose benefit an encumbrance is established;•
general description of the property and content of the encumbrance that is determined by the relevant state body or parties to a securing agreement;•
maximum amount of the secured claim;•
signature (electronic signature) of the applicant.Information cited in the State registry will be open for all natural persons and legal entities.
Access to the information on encumbrances will be possible around the clock during seven days a week.
The above proposals will allow establishing the State registry that will provide information on almost every event of encumbrances on property. Therefore, creditors and/or investors will have a possibility of getting comprehensive information as to property status of legal entities and/or natural persons.
Alongside with this, the draft specifies that securing agreements cover not only pledge agreements, but also agreements on withholding property, repo (repurchase) agreements, agreements on financial leasing, agreements on conditional transfer of the title to property.
Introduction of such agreements will positively influence fulfillment by debtors of their obligations before creditors.
Summary is prepared by Yaroslav the Wise Institute of Legal Information.
O 2002-2004. Yaroslav the Wise Institute of Legal Information. All rights for the provided information are protected in accordance with the legislation of Ukraine. Reference to Yaroslav the Wise Institute of Legal Information is obligatory when making use of these materials.
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