Law of the Republic of Belarus

(Unofficial translation)

 

Law of the Republic of Belarus

No. 345-Z of 20 June 2008

[Amended as of July 12, 2013]

 

 

On Mortgage

Adopted by the Chamber of Representatives on May 14, 2008

Approved by the Council of the Republic on June 4, 2008

 

CHAPTER 1

GENERAL PROVISIONS

 

Article 1. Concept of Mortgage and Grounds for its Arising

 

1. Mortgage is a pledge of immovable property (land plots, capital structures (buildings, constructions) etc.) and other property equated by legislative acts to immovable things.

2. By virtue of a mortgage the creditor on the obligation secured by the mortgage (pledgeholder), has the right, in the event of the debtor’s default of this obligation, to receive preferential satisfaction from the value of the property transferred into the mortgage before other creditors of the person (pledgor) to whom this property belongs, with the exception of cases provided for by legislation.

3. A mortgage may arise from a contract (a mortgage by virtue of a contract) or on the basis of a legislative act, upon the occurrence of the circumstances specified therein, if the legislative act specifies the property and the obligation for securing which it is deemed to be in the mortgage (a mortgage by virtue of legislation).

4. The rules established by this Law for a mortgage by virtue of a contract, including in relation to a mortgage note, shall apply to a mortgage by virtue of legislation, unless otherwise established by the legislative acts.

 

Article 2. Legislation of the Republic of Belarus on Mortgage

 

1. Legislation of the Republic of Belarus on mortgage is based on the Constitution of the Republic of Belarus and consists of normative legal acts of the President of the Republic of Belarus, the Civil Code of the Republic of Belarus, the Code of the Republic of Belarus on Land, the Housing Code of the Republic of Belarus, this Law and other acts of legislation.

2. Rules of a mortgage of perennial plantings, air and sea vessels, inland vessels, “river-sea” vessels and space objects are established by the legislative acts.

 

Article 3. Obligations Secured by a Mortgage

 

Obligations may be secured by the mortgage on credit contracts, contracts of loan, sale, lease, independent work and other contracts, and also from injury, unless otherwise established by the legislation.

 

Article 4. Claims Secured by a Mortgage

 

Claims are secured by a mortgage in the amount of which those claims are at the time of satisfaction, including the amount of the principal obligation, and also, unless otherwise provided by a contract, interest, penalty and claim of damages caused by non-fulfillment or improper fulfillment.

 

Article 5. Securing Additional Costs of the Pledgeholder by Mortgage

 

1. In the case that the pledgeholder, in accordance with conditions of the mortgage contract or by virtue of necessity, bears costs related to the payment of indebtedness of the pledgor on payments to the budget and/or other compulsory payments related to the property which is the subject of mortgage, the reimbursement to the pledgeholder of those necessary costs by the pledgor is secured by the mortgage of this property.

2. [Excluded]

3. Unless otherwise stipulated by the contract, the mortgage also secures the expenses of foreclosure, including the expenses on realization of the property being the subject of mortgage, when the execution is levied on it.

 

Article 6. Subject of Mortgage

 

1. The subject of mortgage may be immovable property and other property equated by legislative acts to  immovable things, including those which shall be transferred to the pledgor in the future and which, at the time of the mortgage contract is not considered to be created in accordance with the legislation (hereinafter – the property which is the subject of mortgage).

2. Unless otherwise stipulated by the mortgage contract, the property which is the subject of mortgage is considered to be pledged along with its appurtenances as a single whole.

In the event of the mortgage of an enterprise as a property complex, the right of pledge shall extend to all property included in the property complex, including the rights of demand and exclusive rights, including those acquired during the period of the mortgage, unless otherwise provided by legislative acts or by the mortgage contract.

3. The right of pledge shall extend to yield, products, and revenues received as a result of the use of the property being the subject of mortgage, in cases stipulated by the mortgage contract.

4. Property may not be the subject of mortgage in the case where the execution on execution documents may not be levied upon it in accordance with civil procedural legislation, and also in the case where the property is acquired at the expense of an external state loan (credit) till the full repayment of obligations under such a loan (credit). .

A part of the property, the division of which is impossible in nature without changing its designation (an indivisible thing) may not be the subject of mortgage.

5. The mortgage of land plots, other property shall be permitted only insofar as their turnover is permitted by legislative acts.

Subsoil plots, water objects and forests may not be the subject of mortgage.

6. Property which is the subject of mortgage is not transferred to the pledgeholder.

 

Article 7. Pledgor

 

1. The right to transfer property being in private ownership into mortgage belongs to its owner, and if the property is transferred into the economic management or operative administration – to a person to which this property belongs on the right of economic management or operative administration, upon consent of the owner of this property or a person authorized by him.

The right to transfer property being in state ownership into mortgage belongs to its owner, and if the property is transferred into the economic management or operative administration – to a person to which this property belongs on the right of economic management or operative administration in the order established by the legislation on disposal of the state property, unless otherwise established by the President of the Republic of Belarus.

The owners is entitled to transfer property allocated on the right of economic management or operative administration into mortgage only after seizure of such property from the person whom this property is allocated on the right of economic management or operative administration.

In the cases specified by this clause, clause 1 of article 9 and clause 4 of article 52 of this Law and by other legislative acts, transfer of property into mortgage is possible only after obtaining the consent (decision) of persons or state bodies, specified therein.

The transfer of property into a mortgage by a person who carries out gratuitous use of this property is not permitted.

2. The pledgor under a mortgage contract may be either the debtor on the principal obligation secured by the mortgage, or a person not involved in this obligation (a third person). In this case, claims of the creditor regarding the obligation secured by the mortgage, of the pledgor (a third person), shall be limited to the property which is the subject of mortgage, unless otherwise specified by an agreement of the parties or by the legislation.

3. The mortgage remains effective in legal succession, including in the order of inheritance of the property which is the subject of mortgage. The transfer of rights and obligations to legal successors (heirs) of such property is carried out in accordance with clauses 1 and 2 of article 26 of this Law.

 

Article 8. Pledgeholder

 

1. The creditor on the obligation secured by the mortgage is a pledgeholder under the mortgage contract securing the performance of this obligation.

2. Pledgeholders under a contract on land plot mortgage may be banks complying with the requirements determined by the President of the Republic of Belarus and also other organizations in the cases determined by legislative acts of the President of the Republic of Belarus.

 

Article 9. Mortgage of a Property in Common Ownership

 

1. Property being in joint ownership may be transferred into a mortgage with written consent of all owners.

2. A participant in shared property may pledge its share in the right of common ownership without the consent of other owners.

A share in the ownership of immovable property may be transferred into mortgage if it is registered in the Unified state register of immovable property, rights thereto and transactions therewith.

3. When isolated premises in a capital construction (building, structure) (later on – isolated premises) in which a joint homeownership has arisen are being transferred into mortgage, simultaneously the pledgor’s share in the right of common ownership to the common property of the joint homeownership is transferred into mortgage.

4. In the event of execution at the request of a pledgeholder to the share in the right of common ownership at its sale, the rules of articles 253 and 258 of the Civil Code of the Republic of Belarus shall be applied.

 

Article 10. Determining the Value of Property Being the Subject of Mortgage when Concluding a Mortgage Contract

 

1. When concluding a mortgage contract, the value of the property being the subject of mortgage is determined by an agreement of the parties, unless otherwise provided for by legislative acts. In that case, the value of the land plot being the subject of mortgage may not be less than the cadastral value of this land plot, and the value of the capital structures (buildings, constructions) situated on the land plot with unfinished capital structures prepared for preservation, being the subject of mortgage, may not be less than their cost determined by the market method, unless otherwise established by the President of the Republic of Belarus.

If one of parties, at the conclusion of the mortgage contract, demands an independent evaluation, such an evaluation is mandatory for the parties. In this case, the evaluation executor shall be selected by mutual consent of the parties.

2. In cases established by legislation, a mandatory evaluation of the property being the subject of mortgage shall be conducted.

3. Conditions and procedures of the evaluation of the property being the subject of mortgage are determined by legislation.

 

CHAPTER 2

MORTGAGE CONTRACT. ORIGIN AND TERMINATION OF MORTGAGE

 

Article 11. Form and Procedure for Concluding a Mortgage Contract and Other Contracts Containing Obligations Secured by Mortgage

 

1. A mortgage contract must be concluded in a written form.

The mortgage contract to secure obligations under the contract which must be notarized is subject to a notary certification.

If the land plot pledgor is a citizen, then the mortgage contract must be certified by a notary or by the register of a territorial organization on state registration of immovable property, rights thereto and transactions therewith (hereinafter – the register) at the location of the land plot.

2. A mortgage contract is deemed to be concluded from the moment of its state registration, with the exception of cases of the mortgage of property which shall be transferred to the pledgor in the future and which, at the time of the conclusion of the mortgage contract, is not deemed created in accordance with the legislation. The contract of the mortgage of property which shall be transferred to the pledgor in the future and which, at the time of the conclusion of the mortgage contract, is not deemed created, in accordance with legislation, shall be deemed to be concluded from the moment the mortgage contract is drawn up in a written form.

3. When the agreement on mortgage is included in another contract containing an obligation secured by the mortgage the requirements concerning the form, content and state registration of that contract, established for the mortgage contract shall be observed.

4. Failure to comply with the form of the mortgage contract and/or requirements of its state registration entails the invalidity of the mortgage contract.

 

Article 12. Contents of a Mortgage Contract

 

1. A mortgage contract must specify the property being the subject of mortgage, its name, location and description sufficient for identifying that property, the value, and also the nature, amount, and term for the performance of the obligation secured by the mortgage.

2. A mortgage contract must specify the right on the basis of which the property being the subject of mortgage belongs to the pledgor, and the name of the organization on state registration of immovable property, rights thereto and transactions therewith, which performed the registration of that right of the pledgor. The data stipulated by this clause are not to be included in the contract of the mortgage of property to be transferred to the pledgor in the future and which, at the time of conclusion of the mortgage contract, is not deemed created in accordance with the legislation.

3. The mortgage contract must specify the nature of the obligation secured by the mortgage with indication of the grounds for arising of the obligation. In the cases when that obligation is based on a contract, the parties of the said contract and the date of its conclusion shall be indicated. The mortgage contract must specify the procedure and other necessary conditions of determination of the obligation secured by the mortgage, if the amount of the obligation is to be determined in the future.

4. The mortgage contract must specify that the rights of the pledgeholger, unless it contradicts legislative acts, shall be certified by a mortgage note if so agreed between the pledgor, if the latter is a third person, and the debtor on the obligation secured by the mortgage as well, and the pledgeholder.

The mortgage contract must specify the name and code of the depository, number of the account “Depot” of the pledgeholder if the rights of the pledgeholder are certified by a paperless mortgage note.

The mortgage contract must also specify all conditions on which, at the request of  any of the parties, an agreement must be reached.

 

Article 13. Origin of a Mortgage

 

1. A mortgage by virtue of a contract arises from the moment of state registration of the mortgage.

2. A mortgage by virtue of legislation arises from the moment of occurrence of circumstances with which the legislative act associates the origin of a mortgage and is subject to the state registration.

3. Property being the subject of mortgage, is considered to be encumbered by a mortgage from the moment of origin of the mortgage.

 

Article 14. Warnings to the Pledgeholder about the Rights of Third Persons to Property Being the Subject of Mortgage

 

When concluding a mortgage contract, with the exception of the case of concluding the contract of the mortgage of property which shall be transferred to the pledgor in the future and which, at the time of the conclusion of such contract, is not deemed created in accordance with legislation, the pledgor must notify the pledgeholder in a written form about all rights of third persons, known to him by the moment of state registration of the mortgage contract, to the property being the subject of mortgage (underlying mortgages; rights of lifetime use, leases; easements and other rights to the property being the subject of mortgage). The failure to fulfill this duty gives a pledgeholder the right to demand premature performance of the obligation secured by the mortgage or a change of the conditions of the mortgage contract.

 

Article 15. Termination of Mortgage

 

1. A mortgage by virtue of a contract is terminated in the event of termination of the obligation secured by the mortgage and also on the grounds provided for by the Civil Code of the Republic of Belarus for the termination of obligations, including:

in the event of a legitimate forced recovery of the property being the subject of mortgage from the pledgor when other property is not given, but an appropriate reimbursement is granted to the pledgor;

in the event of another legitimate forced recovery of the property being the subject of mortgage from the pledgor;

in the event of loss (destruction) or damage to the property being the subject of mortgage to such extent that is has lost considerable its value, if a pledgor fails to exercise the right to restore or replace lost or damaged property being the subject of mortgage within two months from the time of loss (destruction) or damage to that property, unless a longer term is specified by an agreement between the pledgor and the pledgeholder;

in the event of the sale of the property being the subject of mortgage by public trading, and also in the event when the pledgeholder does not exercise the right to retain for himself the property being the subject of mortgage in accordance with parts two and three of clause 4 of article 41 of this Law;

in the event of acquisition of the property being the subject of mortgage by the pledgeholder in accordance with clause 4 of article 41 of this Law;

at the request of the pledgor on the grounds provided for in clause 3 of article 324 of the Civil Code of the Republic of Belarus.

when a debt regarding an obligation secured by the mortgage is delegated to another person, unless the pledgor has given consent to the creditor to be liable for the new debtor.

2. A mortgage by virtue of legislation is terminated on the grounds provided for by legislative acts and also on the grounds provided for in clause 1 of this article, unless otherwise established by legislative acts.

3. Subsequent mortgages are also terminated in the event of the termination of the prior mortgage in the course of the satisfaction of the claims of prior pledgeholders when the whole value of the property being the subject of mortgage, without remainder has been used.

4. The termination of a mortgage is registered in the organization on state registration of immovable property, rights thereto and transactions therewith, in the order established by legislation.

5. Upon termination of the mortgage on grounds not related to the termination of the obligation secured by the mortgage or the pledgeholder the requirements have been satisfied from the value of the property transferred into mortgage, the pledgeholder is entitled to demand premature performance of the obligation secured by the mortgage in the manner specified by the mortgage contract, having regard to the specifics established by this Law.

 

CHAPTER 3

MORTGAGE NOTE

 

Article 16. Basic Provisions about Mortgage Note. Form of Mortgage Note. Owner of Mortgage Note

 

1. Rights of the pledgeholder on an obligation secured by the mortgage and under a mortgage contract may be certified by a mortgage note upon an agreement between the pledgor and, if the latter is a third person, the debtor on an obligation secured by the mortgage as well, and the pledgeholder, unless otherwise established by legislative acts.

2. The original pledgeholder on the mortgage contract the rights under which are certified by a mortgage note is simultaneously the mortgage note holder.

The mortgage note holder may be also a person which has acquired the rights under a mortgage note on the basis of:

the transfer (assignment) of the rights under a mortgage note in accordance with article 35 of this Law;

execution on the mortgage note;

legal succession, including in the order of inheritance;

a court decision on the recognition of rights under the mortgage note.

A mortgage note holder which has acquired rights on the mortgage note on one of grounds, specified by part 2 of this clause is obliged to register the transfer of rights on the mortgage note in the order established by article 18 of this Law.

3. A mortgage note is a nominal security which certifies the following rights:

the right of the mortgage note holder to receive performance under an obligation secured by the mortgage without submission of other evidence of the existence of this obligation;

the rights of the pledgeholder under a mortgage securing the performance of an obligation.

4. Persons obliged under a mortgage note are the pledgor, and if it is a third person, then also the debtor on the obligation secured by the mortgage.

5. A mortgage note may be drawn up in documentary (documentary mortgage note) or paperless (paperless mortgage note) form by an agreement of the parties.

The model form (blank form) of a documentary mortgage note and also the procedure for its drawing up is established by the Council of Ministers of the Republic of Belarus in accordance with this Law and other legislation.

A paperless mortgage note must contain the requisites stipulated by parts 1 and 3 of clause 1 of article 17 of this Law. The procedure for drawing up and transfer of the documentary mortgage note for centralized storage to the Central Securities Depository of the Republic of Belarus and also the procedure for accounting of the rights on a documentary mortgage note in the depository system are established by the Council of Ministers of the Republic of Belarus in accordance with this Law and other legislation.

A mortgage note is subject to state registration in the special register in the order established by the Council of Ministers of the Republic of Belarus, unless otherwise established by the President of the Republic of Belarus.

In the event of certification of rights of the pledgeholder of a mortgage note, the initial pledgeholder shall submit in writing to the organization for state registration of immovable property, rights thereto and transactions therewith or submit to the pledgor, and if he is a third person – then to the pledgor or the debtor under the obligation secured by mortgage, the following data:

about the amount of the obligation secured by mortgage, sum of the interest if it is to be paid under this obligation or about conditions allowing to determine the total amount of all claims under the obligation secured by mortgage;

about the time limit for fulfillment of the obligation secured by mortgage or about conditions allowing to determine the time limits and amounts of payments.

The application about drawing up and state registration of a mortgage note, data provided by part five of this clause, other documents provided for by the legislation shall be submitted to the organization for state registration of immovable property, rights thereto and transactions therewith by the initial pledgeholder or pledgor, and if the pledgor is a third person – then by the pledgor or the debtor under the obligation secured by mortgage.

6. A documentary mortgage note is drawn up by the organization on state registration of immovable property, rights thereto and transactions therewith, signed by the pledgor, and if it is a third person then also by the debtor on the obligation secured by the mortgage as well, and transferred to the original pledgeholger by the organization on state registration of immovable property, rights thereto and transactions therewith after the state registration of the mortgage contract, the mortgage and the state registration of the documentary mortgage note issued in accordance with the mortgage contract.

In the event of the mortgage of property which shall be transferred to a pledgor in the future and which, at the time of conclusion of the mortgage contract is not deemed to be created in accordance with the legislation, the documentary mortgage note is drawn up by the organization on state registration of immovable property, rights thereto and transactions therewith, and signed by the pledgor, and if it is a third person by the debtor on the obligation secured by the mortgage as well, and also is transferred to the original pledgeholder by the organization on state registration of immovable property, rights thereto and transactions therewith after the state registration of the creation of that property, arising of the right of ownership to it, the mortgage and the state registration of the documentary mortgage note.

7. A paperless mortgage note is drawn up by the organization on state registration of immovable property, rights thereto and transactions therewith in the presence of the pledgor, but if the latter is a third person then also in the presence of the debtor on the obligation secured by the mortgage, and, not later than one working day following the day of state registration of the mortgage contract, the mortgage and the state registration of the paperless mortgage note, is transferred by the organization on state registration of immovable property, rights thereto and transactions therewith to the Central Securities Depository of the Republic of Belarus for accepting the paperless mortgage note for centralized storage and ensuring the record of rights under the paperless mortgage note of the prior pledgeholder in the depository system.

In the event of the mortgage of property which shall be transferred to a pledgor in the future and which, at the time of conclusion of the mortgage contract is not deemed to be created in accordance with the legislation, a paperless mortgage note is drawn up by the organization on state registration of immovable property, rights thereto and transactions therewith in the presence of the pledgor, but if the latter is a third person then also in the presence of the debtor on the obligation secured by the mortgage, and also transferred to the Central Securities Depository of the Republic of Belarus for accepting the paperless mortgage note for centralized storage and ensuring the record of rights under the paperless mortgage note of the original pledgeholger in the depository system. The transfer of a paperless mortgage note to the Central Securities Depository of the Republic of Belarus is carried out by the organization on state registration of immovable property, rights thereto and transactions therewith, not later than one working day following the day of state registration of the creation of that property, the rights of ownership to it, the mortgage and state registration of the paperless mortgage note.

8. The transfer (assignment) of rights under a mortgage note and a pledge of a mortgage note are carried out in the manner prescribed in articles 35 and 36 of this Law.

9. [Excluded]

10. In the event of partial performance of an obligation secured by the mortgage, persons obligated under the mortgage note, and the pledgeholder are required to conclude an agreement in a written form, before the transfer (assignment) of rights under the mortgage note to a third person by the mortgage note holder, providing changes of conditions of the mortgage note in the part of the obligation secured by the mortgage, and to submit it to the organization on state registration of immovable property, rights thereto and transactions therewith. On the basis of the concluded contract not later than one working day following the day of its submission to the organization on state registration of immovable property, rights thereto and transactions therewith:

a respective mark on the partial performance of the obligation secured by the mortgage is made on the documentary mortgage note by the organization on state registration of immovable property, rights thereto and transactions therewith, confirmed by the signature of the pledgeholder;

if a paperless mortgage note is available, the organization on state registration of immovable property, rights thereto and transactions therewith, transfers the information on the partial performance of the obligation secured by the mortgage to the Central Securities Depository of the Republic of Belarus . Not later than one working day following the date of receipt of such information, the Central Securities Depository of the Republic of Belarus submits the information to the depository in which a paperless mortgage note is taken into account for recording the partial performance of obligations secured by the mortgage.

Upon failure to fulfill the obligation provided for in part one of this clause, the pledgeholder and the pledgor, and, if the latter is a third person, a debtor on the obligation secured by the mortgage as well, are jointly and severally liable for any damage caused to a third person in full.

11. A mortgage note is annulled by the organization on state registration of immovable property, rights thereto and transactions therewith:

after the termination of a mortgage - upon the statement of a pledgor, and if a documentary mortgage note is available - also at its submission;

if a mortgage note is damaged – upon the documentary mortgage note holder’s statement at its submission;

according a court decision;

on a joint application of the mortgage note holder and persons obligated under it.

A damaged documentary mortgage note which has received mechanical damage from the impact of external factors (breaks, bursts, loss of a part of the mortgage note, etc.), chemical damages (destruction of the paper, change of color, other means of protection, etc.), thermal damages (burning out, burning and etc.) or other damage, but which has thereby kept the number of the documentary mortgage note, allowing it to be identified.

The damaged documentary mortgage note holder submits it to the organization on state registration of immovable property, rights thereto and transactions therewith. In doing so he submits an application for introducing changes to the data in the special register in connection with the cancellation of the damaged documentary mortgage note and for the transfer of a new documentary mortgage note to its holder. The organization on state registration of immovable property, rights thereto and transactions therewith makes a new documentary mortgage note instead of the cancelled damaged documentary mortgage note, which is signed by the pledgor, and, if he is a third person, by the debtor on the obligation secured by the mortgage as well, and transferred to the holder of the damaged documentary mortgage note by the organization on state registration of immovable property, rights thereto and transactions therewith after introducing changes to the data of the special register.

12. The organization on state registration of immovable property, rights thereto and transactions therewith, which performed the state registration of the documentary mortgage note, cancels the documentary mortgage note by putting a stamp on its face side containing the word “cancelled”. Cancellation by the physical destruction of the documentary mortgage note is not permitted. The cancelled documentary mortgage note is stored in the organization on state registration of immovable property, rights thereto and transactions therewith till the registration in accordance with clause 4 of article 15 of this Law of the termination of a mortgage.

13. The organization on state registration of immovable property, rights thereto and transactions therewith, not later than one working day following the date of cancellation of a documentary mortgage note, transfers the information on its cancellation to the Central Securities Depository of the Republic of Belarus . The cancelled paperless mortgage note is taken out of centralized storage at the Central Securities Depository of the Republic of Belarus, not later than one working day following the date of receipt of such information, and writes it off from the account “depot” of the possessor of a paperless mortgage note.

 

Article 17. Contents of a Mortgage Note

 

1. A mortgage note must contain:

the words “mortgage note” included in the name of the document;

the number of the mortgage note;

the name, personal or other identification number of the pledgor, a natural person, and the indication of his place of residence or a place of temporary stay; or the name of the pledgor, his account number of the payer and the indication of his location if the pledgor is a legal person; or the name, personal or other identification number of the pledgor, the indication of his place of residence, the account number of the payer if the pledgor is a individual entrepreneur;

the name, personal or other identification number of the pledgeholder, a natural person, and the indication of his place of residence or a place of temporary residence; or the name of the pledgeholder, the account number of the payer and the indication of his location if the pledgeholder is a legal person; or the name, personal or other identification number of the pledgeholder and the indication of its residence, his account number of the payer if the pledgeholder is a individual entrepreneur;

the name of the contract or other obligation secured by the mortgage with indication of the date of conclusion of such contract or the grounds of origin of the obligation secured by the mortgage;

the name and indication of the place of residence or the place of temporary residence of the debtor, a natural person; or the name and indication of the location of the debtor, a legal person; or the name and indication of the residence of the debtor, a individual entrepreneur, if the debtor on the obligation secured by the mortgage is not the pledgor;

the amount of the obligation secured by the mortgage, the rate of interest if it is to be paid on this obligation, or conditions allowing to determine the total amount of all claims under the obligation secured by the mortgage;

the term of performance of the obligation secured by the mortgage or conditions allowing to determine the time limits and amounts of payments;

the name, the description sufficient for identifying the property being the subject of mortgage, and an indication of the location of that property;

the value of the property being the subject of mortgage, specified in accordance with article 10 of this Law, with exception of cased of mortgage arisen by virtue of the legislation;

the right on the basis of which the property being the subject of mortgage, belongs to the pledgor and the name of the organization on state registration of immovable property, rights thereto and transactions therewith carrying out the registration of that right with the indication of the number, the date of issue of the certificate on state registration and the place of state registration;

the indication whether the property being the subject of mortgage is encumbered or not at the moment of state registration of the mortgage by any rights of third persons subject to state registration;

the signature of the pledgor, and, if he is a third person, also that of the debtor of the obligation secured by the mortgage, in the case when the mortgage note is drawn up in a documentary form;

the data about the date and the place of state registration of the mortgage contract, with the exception of cases when the subject of mortgage is a property which will be transferred to the pledgor in the future and which, at the time of the conclusion of the mortgage contract is considered as not created in accordance with the legislation and the cases of mortgage arisen by virtue of the legislation;

the data about state registration of the mortgage note;

the data about the date of transferring the documentary mortgage note to the pledgeholder or to the Central Securities Depository of the Republic of Belarus for centralized storage and ensuring the record of rights on the paperless mortgage note of the original pledgeholder of the paperless mortgage note.

The document may not be registered in the special register as a mortgage note, in the absence of data provided for by part 1 of this clause.

In addition to data provided for by part 1 of this clause, the mortgage may contain other data.

2. In the event of a discrepancy in the content of the mortgage note with the mortgage contract or the contract containing obligation secured by the mortgage, if such a discrepancy is a result of the transfer (assignment) of the rights under the mortgage note or of the introduction of changes specified in clause 4 of this article into the mortgage note and/or in notices on the mortgage note, or putting a notice about partial fulfillment of the obligation on the mortgage note, the content of the mortgage note is considered to be correct. The mortgage note holder is entitled to demand the performance of the obligation under the mortgage note in accordance with its content, with the exception of the cases when the discrepancy in the content of the mortgage note with the mortgage contract or with the contract containing obligations secured by the mortgage is caused by errors which are committed due to the fault of the mortgage note holder.

The mortgage note holder has the right to demand the elimination of discrepancies between the mortgage contract and the content of the mortgage note from the pledgor, and the elimination of discrepancies between the obligation and the content of the mortgage note from the debtor on the obligation secured by the mortgage.

3. Errors made when drawing up the mortgage note are corrected by the registrar.

An error the correction of which may lead to arising, transfer or termination of rights, restrictions (encumbrances) of rights on the property being the subject of  the mortgage, or to causing harm to the interested persons (errors of a nontechnical nature) is to be corrected by a joint application of the mortgage note holder and the persons obligated under a mortgage note or by a court decision in the presence of the mortgage note holder and the persons obligated under a mortgage note.

An error the correction of which may not lead to arising, transfer or termination of rights, restrictions (encumbrances) of rights on the property being the subject of  the mortgage, or to causing harm to the persons interested (a technical error), is to be corrected by the statement of the mortgage note holder, persons obligated under a mortgage note, other interested persons or bodies or on the initiative of the registrar in the presence of the mortgage note holder and the persons obligated under a mortgage note.

For damage caused by an error of a non technical nature, specified in part 2 of this clause, are liable the debtor on the obligation secured by the mortgage, the pledgor, the mortgage note holder and also the organization on state registration of immovable property, rights thereto and transactions therewith, due to the fault of which that error has been committed.

An error made when putting notices on the mortgage note shall be corrected by the registrar in the order established by this clause for correcting errors made when drawing up a mortgage note.

4. The mortgage note holder and persons obligated under it may conclude in writing an agreement about changing the data contained in the mortgage note, specified in part one of clause 1 of this article, (later on – agreement on introduction of changes) if it does not entail the arising of a new mortgage. Introduction of changes into mortgage note and/or or into notices on the mortgage note shall be carried out on the basis of an application of the mortgage note holder, agreement on introduction of changes and other documents provided by the legislation.

Introduction of changes into a documentary mortgage note and/or into notices on the mortgage note is carried out by the organization on state registration of immovable property, rights thereto and transactions therewith in the order established by the legislation.

 

Article 18. State Registration of Transfer of Rights under a Mortgage Note

 

1. The transfer of rights under a mortgage note is subject to state registration in the procedure established by legislation on state registration of immovable property, rights thereto and transactions therewith.

An appropriate mark is made on the mortgage note about the transfer of rights under a mortgage note by the organization on state registration of immovable property, the rights thereto and transactions therewith.

The transfer of rights under a mortgage note is possible at:

the transfer (assignment) of rights under a mortgage note;

execution on a pledged mortgage note;

legal succession;

the availability of a court decision on the recognition of the rights under a mortgage note for the applicant;

Within ten working days after the state registration of the transfer of the rights under a mortgage note, the mortgage note holder shall inform the debtor of the obligation secured by the mortgage about his registered right in a written form, enclosing the statement from the registration book issued by the organization on state registration of immovable property, rights thereto and transactions therewith.

2. The debtor on a obligation secured by the mortgage, which has received from the mortgage note holder a written notice about the state registration of rights transferred to him under a mortgage note, is obliged to make payments on the specified obligation, without requiring the presentation of the mortgage note to him each time. Such an obligation of the debtor on an obligation secured by the mortgage is terminated upon the receipt of a written notice from the mortgage note holder about the transfer of the rights under the mortgage note.

3. When a paperless mortgage note is available, the organization on state registration of immovable property, the rights thereto and transactions therewith transfers to the Central Securities Depository of the Republic of Belarus, information about the state registration of the transfer of rights under a paperless mortgage note not later than one working day following the day of state registration of the transfer of rights under the paperless mortgage note.

 

Article 19. Exercise of Rights under a Mortgage Note and Discharge of an Obligation Secured by the Mortgage

 

1. The debtor on the obligation secured by the mortgage fulfills this obligation to the mortgage note holder.

2. If a documentary mortgage note is with the pledgeholder or if a mark about a partial performance of the obligation secured by the mortgage is not made, and, when a paperless mortgage note is available, a partial performance of the obligation is not recorded in the depository accounting, this indicates, unless otherwise proven, that the obligation or part thereof are not performed.

3. After the termination of a mortgage, the holder of a documentary mortgage note shall, within three working days, to transfer the documentary mortgage note to one of the persons obligated under it, unless the mortgage contract defines to which of the persons obligated under the documentary mortgage note, it should be transferred.

A person obligated under a documentary mortgage note, which is not a pledgor and which received a documentary mortgage note from its holder, shall transfer the documentary mortgage note, within ten working days from the moment of its receipt, to the pledgor. The pledgor, to which the documentary mortgage note has been transferred, is obliged, within ten working days from the moment of receipt, to inform other persons obligated under it about that matter in a written form.

The mortgage note holder after termination of a mortgage is obliged, within ten working days, to notify in a written form the organization on state registration of immovable property, rights thereto and transactions therewith about the fulfillment of obligations under the mortgage note. The organization on state registration of immovable property, rights thereto and transactions therewith, not later than one working day following the day of receipt of such information, shall perform the state registration of the termination of the mortgage, unless otherwise determined by the President of the Republic of Belarus.

When a paperless mortgage note is available, the organization on state registration of immovable property, rights thereto and transactions therewith, not later than one working day following the day of state registration of the termination of a mortgage, transfers to the Central Securities Depository of the Republic of Belarus information about the fulfillment of obligations under the paperless mortgage note. Not later than one working day following the day of receipt of this information, the paperless mortgage note, under which obligations are fulfilled, shall be withdrawn from centralized storage at the Central Securities Depository of the Republic of Belarus and written off from the account “Depot” of the holder of the paperless mortgage note.

4. A person obligated under a mortgage note has the right to refuse the fulfillment under a mortgage note to the submitter of a mortgage note in the cases, if:

the suit on recognizing of invalid transfer (assignment) of rights under that mortgage note or on applying consequences of invalidity of that transaction is admitted for the consideration by the court;

the duplicate of a documentary mortgage note is issued on the submitted documentary mortgage note in relation to its loss by the legitimate holder, or a breach of order for issuing the documentary mortgage note or its duplicate has been committed, for which persons obligated under them are not liable.

5. The legitimate remaining of the documentary mortgage note with any of the persons obligated under it evidences that the obligation secured by the mortgage is fulfilled, unless otherwise proved or established by this Law.

 

Article 20. Restoration of Rights under Lost Documentary Mortgage Note

 

1. Restoration of rights on a lost documentary mortgage note is made by the pledgor on the basis of:

an application of the holder of the documentary mortgage note, if according to the data of the Unified State Register of Immovable Property, Rights Thereto and transactions therewith, it is possible to establish the legitimacy of rights being restored on the lost documentary mortgage note;

 a court decision rendered as a result of consideration in special proceedings about establishments of the facts which have legal significance,  in accordance with civil procedural and economic procedural legislation.

2. The pledgor, in the case of a loss of the documentary mortgage note, is obliged to apply, within 10 working days from the day of receipt of the application of the documentary mortgage note holder or of entry into legal force of the court decision, to the organization on state registration of immovable property, rights thereto and transactions therewith, which carried out the state registration of the mortgage and the lost documentary mortgage note, to draft a duplicate of the documentary mortgage note.

Expenses on restoration of rights under the lost documentary mortgage note are borne by the mortgage note holder.

3. The duplicate documentary mortgage note with the mark “Duplicate” is transferred to the holder of the documentary mortgage note by the organization on state registration of immovable property, rights thereto and transaction therewith which carried out the state registration of the mortgage and the lost documentary mortgage note, not later than one working day following the day of applying of the pledgor to the organization on state registration of immovable property, rights thereto and transactions therewith.

4. The content of the duplicate documentary mortgage note must correspond fully to the lost documentary mortgage note.

5. The organization on state registration of immovable property, rights thereto and transactions therewith makes a mark denoting the issuance of a duplicate of the documentary mortgage note in the special register where the documentary mortgage note is registered.

6. The organization on state registration of immovable property, rights thereto and transactions therewith, which has drawn up the duplicate of the documentary mortgage note, is responsible for damage arising in connection with any discrepancies in the duplicate of the lost documentary mortgage note.

 

CHAPTER 4

RIGHTS AND DUTIES OF PLEDGOR AND PLEDGEHOLDER UNDER MORTGAGE CONTRACT

 

Article 21. Rights and Obligations of Pledgor under Mortgage Contract

 

1. The pledgor has the right:

to use the property being the subject of mortgage, in accordance with its intended use, avoiding the deterioration and/or reduction of its value beyond what is caused by normal wear and tear. Conditions of the mortgage contract restricting this right of the pledgor are void;

to receive, as a result of the use of the property being the subject of mortgage production, fruits, products and revenues, unless otherwise stipulated by the mortgage contract;

to dispose of the property being the subject of mortgage, in accordance with article 25of this Law. For the purposes of this Law, the alienation of the property being the subject of mortgage means concluding transactions with that property which stipulate the transfer of the right of ownership to that property to another person or transfer this property into the economic management or operative administration to another legal person;

to re-pledge the property being the subject of mortgage, unless otherwise provided for by legislation or by the mortgage contract;

to lease the property being the subject of mortgage, rent or to allow gratuitous use, to grant another person the right of limited use of that property (easement) with regard to conditions specified by article 28 of this Law;

to otherwise dispose of the property being the subject of mortgage, with a written consent of the pledgeholder, unless otherwise specified by legislation or the mortgage contract.

The pledgor may have other rights specified by this Law, other acts of legislation and the mortgage contract.

2. The pledgor is obliged to:

maintain the property being the subject of mortgage in an undamaged condition and bear the expenses on maintaining the property until the termination of mortgage, unless otherwise stipulated by the mortgage contract;

perform  routine and capital repair of the property being the subject of mortgage according to terms specified by legislation, unless otherwise stipulated by the mortgage contract;

reclaim the property being the subject of mortgage, from unlawful possession;

take measures necessary to safeguard the property being the subject of mortgage, including to protect it from assaults and claims of third persons;

immediately, inform the pledgeholder of the threat of loss (destruction) or damage of the property being the subject of mortgage;

fulfill other obligations, in accordance with this Law, other acts of legislation or the mortgage contract.

 

Article 22. Insurance of the Property being the Subject of Mortgage

 

A pledgor is required to insure the property being the subject of mortgage, for his own benefit or for the benefit of the pledgeholder for the duration of the mortgage contract, in cases specified by legislative acts or the mortgage contract.

 

Article 23. Rights of the Pledgeholder under the Mortgage Contract

 

1. The pledgeholder has the right, including if the property being the subject of mortgage is transferred to the possession of a third person by the pledgor, to verify documentarily and the actual availability, status, conditions of storage and maintenance of that property. The verification carried out by the pledgeholder shall not interfere with the use of the property being the subject of mortgage by the pledgor or other persons which possess that property.

2. In the case of violation by the pledgor of the duties on ensuring the preservation of the property being the subject of mortgage, creating a threat of loss (destruction) or damage the property, or on its insuring or when the pledgeholder is unreasonably refused the verification of the preservation of the property, the pledgeholder is entitled to demand premature fulfillment of the obligation secured by the mortgage.

3. The pledgeholder has the right to satisfy its demand on the obligation secured by the mortgage directly from insurance compensation for the loss (destruction) or damage of the property being the subject of mortgage, regardless for which benefit it is insured. This demand is to be satisfied prior to claims of other creditors of the pledgor and persons for the benefit of which the insurance has been made, with the exception of the cases specified by legislative acts.

The pledgeholder loses the right to satisfaction of its demand from insurance compensation, if the loss (destruction) or damage of the property being the subject of mortgage has occurred due to its fault.

4. If the property being the subject of mortgage happened to be in unlawful possession of other persons, the pledgeholder has the right, acting in its own name, to reclaim that property from unlawful possession to transfer its possession to the pledgor.

5. A pledgeholder may have other rights specified by this Law, other acts of legislation and the mortgage contract.

 

Article 24. Consequences of the Loss (Destruction) or Damage of the Property being the Subject of Mortgage

 

1. The pledgor bears the risk of accidental loss (destruction) or damage of the property being the subject of mortgage, unless otherwise stipulated by the mortgage contract.

The pledgeholder is entitled to demand the premature performance of the obligation secured by the mortgage, including at the expense of insurance compensation in the event of an insured accident, if under circumstances for which the pledgeholder is not liable, the property being the subject of mortgage is lost (destroyed) or damaged to the extent that it has largely lost its value.

If the property being the subject of mortgage, has been lost (destroyed) or damaged under circumstances for which the pledgeholder is not liable, the pledgor has the right to restore that property or replace it with another equivalent property within two months from the time of loss (destruction) or damage of the property being the subject of mortgage, unless a longer term established by an agreement between the pledgor and the pledgeholder.

The pledgeholder may not exercise the right specified by part 2 of this clause, if the pledgor uses the right specified by part 3 of this clause.

2. In the event of the loss (destruction) or damage of a part of the property being the subject of mortgage, its mortgage remains effective respectively only in relation to the remainder of the property of the pledgor, which is the subject of mortgage. In this case, the pledgeholder is entitled to demand premature partial performance of the obligation secured by mortgage in proportion to the size of the lost (perished) or damaged part of the property being the subject of mortgage, including at the expense of the insurance compensation.

 

CHAPTER 5

TRANSFER OF RIGHTS TO PROPERTY UNDER MORTGAGE CONTRACT AND ENCUMBRANCE OF THAT PROPERTY BY RIGHTS OF OTHER PERSONS

 

Article 25. Alienation of the Property being the Subject of Mortgage

 

1. The property being the subject of mortgage may be alienated by the pledgor to another person with a written consent of the pledgeholder, with the exception of the cases specified by clause 2 of this article, unless otherwise provided for by legislation or the mortgage contract.

2. In the case of issuing a mortgage note, alienation of the property being the subject of mortgage is allowed if the right of the pledgor to its alienation stipulated in the mortgage note.

3. The pledgor is entitled to devise the property being the subject of mortgage. Conditions of the mortgage contract or other agreement, limiting that right of the pledgor, are void.

 

Article 26. Preservation of Mortgage upon Transfer of Rights to Property being the Subject of Mortgage to Another Person

 

1. A person which acquired the property being the subject of mortgage as the result of its alienation or in the procedure of legal succession, including inheritance, bears all duties of the pledgor under the mortgage contract, unless otherwise established by an agreement between the pledgor or the person which acquired the property being the subject of mortgage with the pledgeholder, including those duties which have not been duly fulfilled by the pledgor.

2. If the property being the subject of mortgage has been transferred on grounds specified in clause 1 of this article to several persons, then each of the legal successors of the original pledgor bears duties under the mortgage contract in proportion to the share in the right of common ownership passed to him or jointly, if the property has been transferred to joint ownership.

3. A mortgage remains in force regardless of whether the transfer (assignment) to other persons of the rights to the property being the subject of mortgage violated rules established by legislation for such transfer (assignment).

 

Article 27. Consequences of Violation of Rules on Alienation of Property Being the Subject of Mortgage

 

1. When the property being the subject of mortgage has been alienated with violation of rules established by this Law, the pledgeholder is entitled to demand at its option:

recognition of the transaction on alienation of the property being the subject of mortgage void and application of consequences specified by article 168 of the Civil Code of the Republic of Belarus;

premature performance of the obligation secured by mortgage and execution on the property being the subject of mortgage, in the event of non-fulfillment or improper fulfillment of the obligation secured by the mortgage, regardless to whom this property belongs.

 

Article 28. Encumbrance of the Property Being the Subject of Mortgage, by Rights of Third Persons

 

Unless otherwise provided by legislative acts or the mortgage agreement, the pledgor is entitled to lease, without consent of the pledgeholder (the mortgage note holder), the property being the subject of mortgage, to transfer it for gratuitous use or, upon an agreement with another person, to grant him the right of a restricted use of that property (easement) providing that:

the period for which that property is given for use does not exceed the term of the obligation secured by the mortgage;

that property is being given for use in accordance with the intended use of that property.

 

Article 29. Consequences of Forced Seizure of the Property Being the Subject of Mortgage, or Part Therof

 

1. If the right of ownership of the pledgor to the property being the subject of mortgage is terminated on the grounds and in the order determined by legislative acts for seizing property for state needs, its requisition or nationalization, and the pledgor is provided with another property or a respective compensation, then the mortgage is extended on the property which has been provided instead or the pledgeholder receives the right of preferential satisfaction of his claims from the amount of compensation owed to the pledgor. In this case, the pledgeholder is entitled to demand premature performance of the obligation secured by mortgage and execution on the property provided to the pledgor instead of the seized or the satisfactions of his claims from the compensation.

2. In the case when the property being the subject of mortgage is being seized from the pledgor in the order established by legislative acts, on the ground that the actual the owner of this property is another person, or as a sanction for a crime or another  offence (confiscation), or another lawful forced seizure without the providing other property or respective compensation, the mortgage in relation to that property is terminated. In this case, the pledgeholder has the right to demand premature performance of the obligation secured by mortgage.

3. In the case of confiscation, requisition or nationalization, or other lawful forced seizure of a part of the property being the subject of mortgage, the mortgage is respectively remains effective only in relation to the remaining part of such property of the pledgor. In this case, the pledgeholder is entitled to demand premature partial performance of the obligation secured by mortgage, in proportion to the size of the lost part of the property being the subject of mortgage, including at the expense of insurance compensation.

 

CHAPTER 6

SUBSEQUENT MORTGAGE

 

Article 30. Conditions under Which Subsequent Mortgage is Allowed. Subsequent Mortgage Contract

 

1. A property being the subject of mortgage, mortgaged for ensuring the performance of one obligation may be mortgaged for ensuring the performance of another obligation of a debtor to a pledgeholder (subsequent mortgage). The priority of pledgeholders is established on the basis of data from the Unified State Register of Immovable Property, Rights Thereto and Transactions Therewith.

2. A subsequent mortgage is allowed, unless it is prohibited by subsequent mortgage contracts, which are still in effect at the time of the conclusion of the subsequent mortgage contract and unless under the subsequent mortgage contract a mortgage note has been issued.

3. If the prior mortgage contract stipulates conditions on which a subsequent mortgage contract may be concluded, such a contract must be concluded in compliance with those conditions.

4. A subsequent mortgage contract must contain data about prior mortgages.

5. A subsequent mortgage contract entered into in violation of the prohibitions established by the prior mortgage contract or by this Law may be recognized as invalid by the court on the suit of any interested person, regardless of whether the pledgeholder under the subsequent mortgage contract knew or not about such prohibition .

If a subsequent mortgage is not prohibited, but the subsequent mortgage contract is entered into in violation of conditions specified by the prior mortgage contract, then claims of a pledgeholder under the subsequent mortgage contract are satisfied to the extent to which their satisfaction is possible in accordance with conditions of the prior mortgage contract.

6. The conclusion of a subsequent mortgage contract which specifies drawing up of a mortgage note is not allowed.

 

Article 31. Warning to Pledgeholders about Prior and Subsequent Mortgages. Changing the Prior Mortgage Contract.

 

1. A pledgor is obligated to inform each subsequent pledgeholder before the conclusion of the mortgage contract with him the information about all existing mortgages of the property, including the data:

about the property being the subject of mortgage and its value;

about the nature and the amount of obligations secured by prior mortgages;

about terms of performance of those obligations;

about the names of pledgeholders with indication of their places of residence or places of temporary residence, if pledgeholders are natural persons, or about names of pledgeholders with indication of their locations, if pledgeholders are legal persons, or about names of pledgeholders with indication of their places of residence, if pledgeholders are individual entrepreneurs.

Failure of the pledgor to fulfill the obligation stipulated by part 1 of this clause, gives to the pledgeholder under a subsequent mortgage contract the right to request the dissolution of this contract and compensation for damages sustained.

2. A pledgor which has concluded the subsequent mortgage contract is obliged, within ten working days from the time of state registration of the subsequent mortgage contract, to inform the pledgeholders on prior mortgages about it in writing and upon their request to provide them the data on the subsequent mortgage, specified by part 1 of clause 1 of this article.

3. After the conclusion of a subsequent mortgage contract, changes of the prior mortgage contract, which entail securing new claims of the prior pledgeholder or an increase of the amount of claims secured under that contract, are allowed only with consent of the pledgeholder under the subsequent mortgage contract, unless otherwise was specified by the prior mortgage contract.

4. Rules of this article are not applied, if parties in the prior and the subsequent mortgage contracts are the same persons.

 

Article 32. State Registration of the Subsequent Mortgage

 

State registration of the subsequent mortgage is performed in the order established by legislation on state registration of immovable property, rights thereto and transactions therewith.

 

Article 33. Satisfaction of the Claims of Pledgeholders under Prior and Subsequent Mortgages

 

1. Claims of a pledgeholder under the subsequent mortgage contract are satisfied from the value of the property being the subject of mortgage after the satisfaction of claims of the pledgeholder under the prior mortgage contract.

2. Execution on the property being the subject of mortgage on the obligation secured by the subsequent mortgage may take place only simultaneously with the execution on the property being the subject of mortgage on the obligation secured by the prior mortgage, or after the performance of obligations secured by the prior mortgage.

3. In the event of execution on the property being the subject of mortgage on claims secured by the prior mortgage the simultaneous execution on this property is allowed and on claims secured by the subsequent mortgage the maturity date of which has not yet come.

4. A pledgeholder which intends to submit a claim to foreclose on the property being the subject of a mortgage, the mortgage of which secures the obligations under prior and subsequent mortgages, shall notify about it in writing all pledgeholders under other mortgage contracts of the same property before submitting such a claim.

 

CHAPTER 7

TRANSFER (ASSIGNMENT) OF RIGHTS UNDER MORTGAGE CONTRACT, UNDER MORTGAGE NOTE. PLEDGE OF MORTGAGE NOTE

 

Article 34. Transfer (Assignment) of Rights under the Mortgage Contract and under the Obligation Secured by the Mortgage

 

1. The pledgeholder is entitled to transfer (assign) to another person his own rights under the mortgage contract and under the obligation secured by the mortgage, unless otherwise provided by the mortgage contract.

2. A person to which the rights under the mortgage contract are transferred (assigned) becomes the pledgeholder under that contract instead of the prior pledgeholder.

The transfer (assignment) of rights under the mortgage contract also means the transfer (assignment) of rights under the obligation secured by mortgage, unless otherwise determined by an agreement of the parties.

3. Rights of a pledgeholder under the mortgage contract are also transferred to the person to which rights under the obligation secured by the mortgage has been transferred (assigned), unless otherwise specified by the mortgage contract.

The transfer (assignment) of rights under the obligation secured by the mortgage must be accomplished in the same form in which the obligation secured by the mortgage is concluded.

4. To relations on transfer (assignment) of rights under the mortgage contract and on the obligation secured by the mortgage are applied the rules on assignment of the right of demand, established by articles 353-361 of the Civil Code of the Republic of Belarus.

5. If a mortgage note has been issued under the mortgage contract, then the transfer (assignment) of rights under that contract and on the obligation secured by the mortgage is accomplished only through the transfer (assignment) of rights under the mortgage note.

 

Article 35. Transfer (Assignment) of Rights under the Mortgage Note

 

1. Transfer (assignment) of rights under the mortgage note is made by a written contract, with subsequent state registration by the new mortgage note holder of his rights as a pledgeholder.

Upon the transfer (assignment) of rights under the documentary mortgage note the organization on state registration of immovable property, rights thereto and transactions therewith makes a mark on that mortgage note about the new holder of the documentary mortgage note. The name of the person to which rights have been transferred (assigned) under the documentary mortgage note and the ground for such transfer (assignment) must be exactly and fully specified in the mark.

The mark must be signed by the pledgeholder specified in the documentary mortgage note, but if that mark is not the first one then by the holder of the documentary mortgage note specified in the prior mark.

The organization on state registration of immovable property, rights thereto and transactions therewith not later than one working day following the date of state registration of a new holder of the paperless mortgage note of its rights as the pledgeholder transfers the information on the transfer (assignment) of rights under the paperless documentary mortgage note to the Central Securities Depository in the Republic of Belarus.

The prior holder of the paperless mortgage note submits to the depository, where the paperless mortgage note is registered, the contract on the transfer (assignment) of rights under the paperless mortgage note, on the basis of which the depository transfers the paperless mortgage note from the account “Depot” of its prior holder to the account “Depot” of the new holder of the paperless mortgage note, for fixation in the depository record of the transfer (assignment) of rights under the paperless mortgage note.

The transfer (assignment) rights under the mortgage note entails consequences of the assignment of rights of claims (cession).

The transfer (assignment) of rights under the mortgage note certifying the rights on an obligation secured by the mortgage, partially fulfilled by the moment of the transfer (assignment) of such rights, is made with regard to the requirements, stipulated by part 1 of clause 10 of article 16 of this Law.

2. The transfer (assignment) of rights under the mortgage note to another person means the transfer (assignment) of all rights certified by it in total to the same person.

The legitimate mortgage note holder has all rights certified by it, including the rights of the pledgeholder and the rights of the creditor under the obligation secured by the mortgage.

3. The mortgage note holder is deemed to be legitimate, if its rights to the mortgage note are based on a written contract for the transfer (assignment) of rights under the mortgage note and if the right of the pledgeholder, in accordance with the mortgage note, is registered in the order established by legislation. In this case the holder of the documentary mortgage note is deemed to be legitimate when the last mark is made on it by the prior holder of the documentary mortgage note, and the holder of a paperless mortgage note, when the paperless mortgage note is available on his account “Depot”.

4. Inscriptions on a documentary mortgage note prohibiting subsequent transfer (assignment) of rights under documentary mortgage note to other persons are void.

5. If a third person, in accordance with legislation, fully fulfills the obligation secured by the mortgage on behalf of the debtor, he has the right to demand the transfer (assignment) of rights under the mortgage note to him. When the pledgeholder refused to transfer (assign) rights under the mortgage note, the third person may demand the transfer of those rights to him in a judicial procedure.

 

Article 36. Pledge of the Mortgage Note

 

1. The mortgage note may be pledged under the pledge contract of the mortgage note or without conclusion of such a contract in the cases provided by the legislation.

2. A paperless mortgage note may be pledged both without the transfer and with transfer, and the documentary one – without its transfer to another person (pledgeholder of the mortgage note) for securing an obligation under the credit contract or another obligation between that person and the mortgage note holder.

3. The pledge contract of a mortgage note shall be concluded in writing.

The pledge contract of a documentary mortgage note must be submitted by the plegor to the organization for state registration of immovable property, rights thereto and transaction therewith. The pledge contract of a paperless mortgage note shall not be submitted to the organization for state registration of immovable property, rights thereto and transaction therewith.

The organization for state registration of immovable property, rights thereto and transactions therewith makes a notice on the documentary mortgage note about the pledge of the mortgage note, witnessed by the signature of the pledgeholder of the mortgage note. The organization for state registration of immovable property, rights thereto and transactions therewith does not record the information on the encumbrance of rights to the paperless mortgage note by the pledge obligations. In the event of drawing up a pledge contract of the paperless mortgage note, recording encumbrance of rights to the paperless mortgage note by the pledge obligations is carried out in the depository records on the basis of the pledge contract of the mortgage note submitted by the pledgeholder to the depository in which the paperless mortgage note is accounted.

4. Execution on the pledged mortgaged note is carried out in the order, established by the civil legislation.

Transfer of rights under the mortgage note, under the execution on the pledged mortgage note, is subject to the state registration.

 

CHAPTER 8

EXECUTION ON PROPERTY BEING THE SUBJECT OF MORTGAGE

 

Article 37. Grounds for Execution on Property Being the Subject of Mortgage

 

1. Execution may be levied on the property being the subject of mortgage, in the event of default or improper performance by the debtor of the obligation secured by the mortgage, under circumstances for which he is liable, to satisfy the claims established by article 4 of this Law at the expense of that property.

When conditions of the mortgage contract and conditions of the obligation secured by the mortgage differ in relation to claims which may be satisfied through execution on the property being the subject of mortgage, the conditions of the mortgage contract prevail.

2. Unless otherwise provided by the mortgage contract, the execution on the property being the subject of mortgage pledged for securing an obligation which is fulfilled by periodic payments, is allowed when the terms for their making are being violated systematically, i.e. when the payment terms have been violated three times and more within a year (from 1 January to 31 December).

3. Regarding the claims caused by a default or improper performance of the obligation secured by the mortgage, the execution on the property being the subject of mortgage may not be carried on, if in accordance with conditions of that obligation and/or according to legislation, the debtor on the obligation secured by the mortgage is exempted from liability for such default or improper performance.

4. In the cases specified by article 14, clause 5 of article 15, clause 2 of article 23, clause 2 of article 24, article 27 and clause 3of article 29 of this Law, the pledgeholder is entitled to demand a premature performance of the obligation secured by the mortgage, and when that demand has not been fulfilled, to demand the execution on the property being the subject of mortgage, regardless of proper performance of the obligation secured by the mortgage.

 

Article 38. Procedure for Execution on the Property being the Subject of Mortgage

 

Execution on claims of a pledgeholder is levied on the property being the subject of mortgage under a court decision or in an extra-judicial procedure.

 

Article 39. Judicial Procedure for Execution on Property being the Subject of Mortgage

 

1. Execution on claims of a pledgeholder is levied on the property being the subject of mortgage, under a court decision in the procedure prescribed by the civil procedural or economic procedural legislation, with regard to peculiarities specified by this Law and other legislative acts.

2. When levying the execution on the property being the subject of mortgage pledged under two or more mortgage contracts the pledgeholder is obliged to submit to the court to which the respective suit is submitted a proof evidencing the fulfillment of the duty to notify other pledgeholders in accordance with clause 4 of article 33 of this Law.

 

Article 40. Extra-judicial Procedure for the Execution on Property being the Subject of Mortgage

 

1. Satisfaction of claims of a pledgeholder at the expense of the property being the subject of mortgage without applying to court is allowed on the basis of a notary-certified agreement between the pledgeholder and the pledgor concluded prior to or after the grounds for execution on the property being the subject of mortgage have arisen, with the exception of cases specified by this Law and other legislative acts. In this instance the agreement must contain the condition about granting the right to the pledgor or to the pledgeholder, or to another person at the option of the parties to carry out, in the name of the pledgor, the sale of the pledged property in the event of levying the execution on the pledged property for satisfaction of the claim of the pledgeholder and may not stipulate the transfer of ownership to the pledged property to the pledgeholder.

2. An agreement on satisfaction of claims of a pledgeholder through execution on the property being the subject of mortgage under a prior mortgage is valid if it is concluded upon a written consent of all pledgeholders on all subsequent mortgages to the conditions of that agreement.

3. Satisfaction of claims of a pledgeholder in the order specified by clause 1of this article is not admissible if:

the pledgor is absent and establishing his location is impossible;

for a mortgage of the property the consent (decision) of another person or state body is required;

an enterprise as a property complex is the subject of mortgage;

the subject of mortgage is immovable property related to historical and cultural valuables;

the subject of mortgage is a property which is in joint ownership and any of its owners does not give a written consent on the satisfaction of claims of the pledgeholder in the extra-judicial procedure;

the subject of mortgage is the property which turnover is restricted.

In the cases specified in part 1 of this clause, the execution on the property being the subject of mortgage is levied only under a court decision.

4. [Excluded]

5. When concluding an agreement on the satisfaction of claims of the pledgeholder through execution on the property being the subject of mortgage in accordance with clause 1 of this article, the parties must specify:

the name of the property being the subject of mortgage, on which the execution is levied and the value of that property;

the size of claims secured by the mortgage, subject to satisfaction from the value of the property being the subject of mortgage.

the person authorized to carry out the realization of the property being the subject of mortgage when levying the execution on it, with the exception of the cases established by indent five of part two of article 41 of this Law;

all prior and subsequent mortgages of property being the subject of mortgage, and real rights and the rights of use concerning that property, belonging to third persons.

6. An agreement on the satisfaction of claims of the pledgeholder through execution on the property being the subject of mortgage may be recognized invalid by a court on a suit of the person whose rights have been violated by that agreement.

 

CHAPTER 9

REALIZATION OF PROPERTY BEING THE SUBJECT OF MORTGAGE, ON WHICH EXECUTION IS LEVIED. TERMINATION OF EXECUTION ON THE PROPERTY BEING THE SUBJECT OF MORTGAGE

 

Article 41. Realization of the Property being the Subject of Mortgage on which Execution is Levied

 

1. The property being the subject of mortgage on which the execution is levied under a court decision is realized through sale at public trading in the order established by civil procedural or economic procedural legislation, with regard to peculiarities established by this Law and other legislation.

The property being the subject of mortgage on which the execution is levied on the basis of an agreement between the pledgeholder and the pledgor, certified by a notary, on the satisfaction of claims of the pledgeholder at the expense of the property being the subject of mortgage without applying to the court, concluded prior to or after the grounds established by the legislation for execution on the property being the subject of mortgage have arisen, is realized:

under a contract of sale without holding public trading by the bank-pledgeholder, pledgor or another person authorized by a notary-certified agreement of the bank-pledgeholder with the pledgor, in the case of satifaction of a claim about repayment of the bank credit at the expense of the pledged property, with the exception of the property specified in indent five of this part;

through public trading in the order established by the Civil Code of the Republic of Belarus, with regard to the peculiarities established by this Law and other legislative acts:

by the pledgeholder, pledgor or another person authorized by a notary-certified agreement of the bank-pledgeholder with the pledgor, with the exception of the property specified in indent five of this part;

by the pledgeholder if the subject of mortgage is a land plot being in private ownership, including with capital constructions (buildings, structures) located or being erected therein or capital constructions (buildings, structures) with simultaneous mortgage of a land plot being in private property on which these capital constructions (buildings, structures) are located, and also other immovable property referred to fixed assets of the pledgor.

Peculiarities for holding (public) trading for the realization of land plots being the subject of mortgage are established by the Council of Ministers of the Republic of Belarus having regard to provisions of the legislative acts.

2. The initial price of the pledged property from which the public trading shall commence is determined in a court decision in accordance with the procedural legislation when the execution on the property being the subject of mortgage is levied in a judicial procedure or in an agreement of the pledgeholder and the pledgor on levying the execution on that property without applying to the court, unless otherwise established by the legislative acts..

3. The property being the subject of mortgage shall be sold at (public) trading for the highest price offered during the (public) trading.

4. If (public) trading has been declared as failed and refusal of the sole participant that submitted a request for participation in the public trading or the sole participant that appeared for participation in the public trading to acquire the property being the subject of mortgage at the initial price increased by five percent, the pledgeholder being the recoverer is entitled, upon an agreement with the pledgor, to acquire the property being the subject of mortgage and to offset against the selling price his claims secured by the mortgage. Norms of legislation about the contract of sale shall apply to such an agreement.

When the second public trading is declared as failed and and refusal of the sole participant that submitted a request for participation in the second public trading or the sole participant that appeared for participation in the second public trading to acquire the property being the subject of mortgage at the initial price increased by five percent, the pledgeholder being the recoverer is entitled, upon an agreement with the pledgor, to acquire the property being the subject of mortgage, the pledgeholder is entitled, within one month from the day of declaring the second public trading as failed, to retain the property being the subject of mortgage for himself with assessment of its value in a sum not more than ten percent less than the initial sale price at the second public trading.

The pledgeholder is entitled to retain for himself a land plot being the subject of mortgage in the order determined by this clause, unless it contradicts restrictions established by the legislative acts in the sphere of protection and use of lands concerning the persons which may acquire such land plots and its intended use purposes.

 

Article 42. Termination of Execution on the Property being the Subject of Mortgage

 

1. When the execution is levied on the property being the subject of mortgage at the request of the pledgeholder, the debtor on the obligation secured by the mortgage and the pledgor who is a third person have the right to satisfy all the claims of the pledgeholder secured by the mortgage in the amount of those claims at the time of payment of respective sums. This right may be exercised at any time before the sale at a public trading of the property being the subject of mortgage.

2. The debtor on the obligation secured by the mortgage and the pledgor who is a third person, who satisfy the claims of the pledgeholder shall reimburse the pledgeholder expenses incurred during the execution on the property being the subject of mortgage and its realization.

3. After the claims of the pledgeholder referred to in this article have been satisfied the execution on the property being the subject of mortgage is terminated.

 

CHAPTER 10

PECULIARITIES OF A MORTGAGE OF LAND PLOTS

 

Article 43. Peculiarities of Mortgage of Land Plots

 

1. Land plots being in private ownership may be subjects of mortgage only as a security for obligations under a credit contract concluded with a bank, in the cases determined by the legislative acts of the President of the Republic of Belarus – under other contracts concluded with other organizations.

2.  When a land plot on which a capital construction (building, structure) or unfinished capital structure prepared for preservation is located is being transferred into mortgage, simultaneously this  capital construction (building, structure) or unfinished capital structure prepared for preservation or isolated premises are transferred into mortgage.

The rules provided by part one of this clause also cover the transfer into pledge of shares in the ownership to a land plot.

Land plots allocated for construction and/or maintenance of capital constructions (buildings, structures) being in private ownership may be subjects of mortgage prior to the completion of the construction of the mentioned constructions, unless otherwise established by the President of the Republic of Belarus.

3. A copy of the land cadastral plan (part of the plan) with laid boundaries of the land plot or a copy of the plan of boundaries of the land plot issued by the organization on state registration of immovable property, rights thereto and transactions therewith, must be enclosed to the mortgage contract of the land plot.

 

Article 44. Land Plots not Subject to Mortgage

 

1. The mortgage of land plots which are in state ownership is not allowed.

2. The subject of mortgage may not be a land plot where capital structures (buildings, constructions) are located if on those structures, in accordance with civil procedural law, the execution may not be levied under execution documents.

 

Article 45. Erection by a Pledgeholder of Capital Structures (Buildings, Constructions) on the Land Plot being the Subject of Mortgage

 

1. On a land plot being the subject of mortgage jointly with capital structures (buildings, constructions) located on it or unfinished capital structures prepared for preservation, the pledgor is entitled, without the consent of the pledgeholder,  to erect capital structures (buildings, constructions) or temporary structures in the established procedure.

2. If on the land plot being the subject of mortgage, there are no capital structures (buildings, constructions) and their construction, in accordance with legislation, is not obligatory, the pledgor is entitled, without consent of the pledgeholder, to erect, in the established order, capital structures (buildings, constructions) or temporary structures.

3. Capital structures (buildings, constructions) or unfinished capital structures prepared for preservation, temporary structures built in accordance with clauses 1 and 2 of this article on the land plot being the subject of mortgage are deemed to be under the mortgage. In this case changes in the mortgage contract are not introduced.

4. Erection of capital structures (buildings, constructions) on a land plot being the subject of mortgage, if the pledgor’s rights are certified by the mortgage note, is allowed only in the case when the right of the pledgor to do so is specified in the mortgage note with observance of conditions that are reflected in the note.

 

Article 46. Peculiarities of Execution on Land Plot being the Subject of Mortgage and its Realization

 

1. When the execution is levied on the land plot being the subject of mortgage, its sale and acquisition at (public) trading are carried out with observance of restrictions regarding persons who may acquire such land plots and the purposes of its use, established by legislative acts in the sphere of land protection and use.

2. Execution on the land plot and capital structures (buildings, constructions) located on it or unfinished capital structures prepared for preservation, which are the subject of mortgage, is carried out simultaneously through sale at (public) trading to one buyer.

3. In the case of execution on the land plot being the subject of mortgage on which are located capital structures (buildings, constructions) not belonging to the pledgor, but to another person, and its sale through (public) trading, the purchaser of the plot obtains the rights and duties, which the pledgeholder had with regard to that person.

 

CHAPTER 11

PECULIARITIES OF MORTGAGE OF ENTERPRISES AS PROPERTY COMPLEXES, CAPITAL STRUCTURES (BUILDINGS, CONSTRUCTIONS), UNFINISHED CAPITAL STRUCTURES PREPARED FOR PRESERVATION

 

Article 47. Mortgage of Capital Structures (Buildings, Constructions), Unfinished Capital Structures Prepared for Preservation with the Land Plot on which They are Located

 

1. Transfer into mortgage of a capital construction (building, structure), unfinished capital construction prepared for preservation or isolated premises is allowed only with simultaneous transfer into mortgage under the same contract of the land plot being in private ownership of the pledgor, on which those constructions are located, having regard to the requirements specified by clause 2 of article 8, clauses 1 and 3 of article 43, article 44, clauses 1, 3 and 4 of article 45 of this Law and also of by the legislation on protection and use of lands, or with simultaneous pledge of the lease right of the respective land plot which is leased by the pledgor, if for the right to conclude the lease contract of the land plot a payment has been charged.

Transfer into mortgage of a capital construction (building, structure), unfinished capital construction prepared for preservation or isolated premises located on a land plot being in permanent, temporary use, life-long hereditary possession or lease of the pledgor if the payment for the right to conclude the lease contract of the land plot has not been charged is carried out with the pledge of this land plot (right to this land plot).

2. Rules provided by clause 1 of this article are applied also to the transfer into pledge of shares in the ownership to a capital construction (building, structure), unfinished capital construction prepared for preservation, isolated premises, land plot and also to the transfer into mortgage of a capital construction (building, structure), unfinished capital construction prepared for preservation, isolated premises, which the pledgor will obtain in the future and which are not considered as created in accordance with the legislation and will be located on the land plot belonging to the pledgor.

3. When levying the execution on capital structures (buildings, constructions), unfinished capital structures prepared for preservation, located on the land plot which belongs to the pledgor on the right of lease, and their sale through (public) trading, the purchaser of capital structures (buildings, constructions), unfinished capital structures prepared for preservation acquires simultaneously the right of lease of that land plot.

4. Peculiarities of levying the execution on capital structures (buildings, constructions), unfinished capital structures prepared for preservation, which are the subject of the mortgage, located on the land plot being in private ownership or which belongs to the pledgor on the right of lease, are established in accordance with clause 1 and 2 of article 46 of this Law.

 

Article 48. Determination of Structure and the Value of Enterprise Transferred into a Mortgage as a Property Complex

 

1. The structure of an enterprise being transferred into a mortgage as a property complex and its value are determined on the basis of a full inventory of the given property. The act of inventory, the balance sheet and the report of the auditor organization (the auditor carrying out activity as individual entrepreneur) about the structure and the value of the enterprise as a property complex, and also the list of all debts (liabilities) included in structure of that enterprise, with indication of creditors, nature, size and terms of their claims are mandatory appendices to the mortgage contract. The period between the date of drawing up of the act of inventory, the balance sheet, the report of the auditor organization (the auditor carrying out activity as individual entrepreneur) about the structure and cost of the enterprise as a property complex and the date of the conclusion of the mortgage contract may not exceed three months.

 

Article 49. Obligations that May Be Secured by Mortgage of Enterprise as Property Complex

 

1. The mortgage of an enterprise as a property complex may secure an obligation the size of which is equal to not less than half the value of that enterprise.

2. The mortgage of an enterprise as a property complex is to secure an obligation which is due not earlier than in one year after the conclusion of the mortgage contract.

 

Article 50. Rights of Pledgor in Relation to Property which is a Part of the Enterprise as a Property Complex, Transferred into a Mortgage

 

1. The pledgor is entitled to alienate and otherwise dispose of the property being a part of the enterprise as a property complex, transferred into a mortgage, with the exception of cases stipulated by part 2 of this clause, and also to make changes to the structure of the given property when it does not entail the reduction in the total value of the enterprise as a property complex specified in the mortgage contract, and also does not violate other conditions of the mortgage contract, unless otherwise specified by legislation or the mortgage contract.

Alienation of immovable property being a part of the enterprise as a property complex, transferred into a mortgage, is allowed after its exclusion from the structure of that enterprise.

2. In the event, of the failure of the pledgor to take measures on ensuring the safety of the property which makes part of the enterprise as a property complex, transferred into a mortgage, or inefficient use of that property, which may lead to a reduction in the value of the enterprise as a property complex, the pledgeholder is entitled to apply with a claim for a premature performance of the obligation secured by the mortgage, or for the imposition of mortgage control over the activity of the pledgor.

In accordance with a court decision on imposing mortgage control, the pledgeholder may be entitled in the course of the mortgage control:

to require from the pledgor regular presentation of accounting and other reporting documents;

to require from the pledgor to hold audit (checking of the accounting and accounting (financial) statements and other documents of the pledgor, and if necessary and/or verification of his activity, which should be reflected in the accounting (financial) statements);

to give prior consent to conclusion of transactions with the property which makes part of the enterprise as a property complex;

to present to the court suits about the recognition of transactions concluded by the pledgor without the consent of the pledgeholder, invalid.

 

Article 51. Levying Execution on the Property being a Part of the Enterprise as Property Complex, Transferred into a Mortgage

 

1. In the event of non-fulfillment by the pledgor of an obligation secured by the mortgage of the enterprise as a property complex, the execution on the property being a part of the enterprise as a property complex, transferred in the mortgage, may be levied only under a court decision.

2. The buyer who has acquired at (public) trading an enterprise as a property complex obtains the rights and duties of the owner of that enterprise from the time of state registration of the transfer of the right of ownership to the acquired enterprise as a property complex.

 

CHAPTER 12

PECULIARITIES OF A MORTGAGE OF RESIDENTIAL PREMISES

Article 52. Applying Rules on Mortgage of Residential Premises

 

1. Rules of this chapter apply to the mortgage of residential premises of the private housing fund.

2. Mortgage of residential premises of the state housing fund is not allowed.

3. For the transfer of residential premises which belong to a citizen on the right of ownership into mortgage, a prior written consent of adult members of his family, former members of this family residing living in the residential premises is necessary, of citizens residing in residential premises allocated according to a legacy or on the basis of a contract of lifelong support with maintenance, with the exception of the case when the residential premises were pledged under a mortgage contract to secure the repayment of a credit granted for the purchase or construction of the residential premises and payment of the interest thereon.

4. The transfer into mortgage of residential premises where reside minor members of the family, former members of the family of the owner, recognized to be in a socially dangerous situation or recognized to be in need a state protection or citizens recognized incapable or restricted in active legal capacity by the court, or of residential premises allocated to minor orphans or children left without parental care, or residential premises belonging on the right of ownership to a minor citizen is allowed only with a written consent of a body of guardianship and tutorship.

Refusal of the body of guardianship and tutorship to grant consent to transfer into mortgage of residential premises may be appealed in the order provided by the legislation on administrative procedures or in the court.

5. The mortgage of residential premises being in the ownership of minor citizens, citizens recognized incapable or restricted in their active legal capacity by the court, over whom guardianship and tutorship have been established, is carried out in the order established by the legislation for the conclusion of transactions with property of persons under care.

 

Article 53. Execution on Pledged Residential Premises

 

1. Execution on pledged residential premises is possible both in a judicial, and in an extra-judicial procedure with observance of the rules established in this Law and other legislative acts.

2. In the event of execution on pledged residential premises and their realization, the right to use that property of persons having such rights, with the exception of persons specified in clause 3 of this article, is terminated from the moment of registration in the organization for the state registration of immovable property, rights thereto and transactions therewith of the transfer of the right of ownership to the pledged residential premises.

3. Persons residing in a pledged residential premises under the terms of a lease or sublease contract of residential premises, may not be evicted upon the realization of the pledged residential premises. Lease or sub-lease contracts of residential premises, concluded prior to the conclusion of the mortgage contract, remain in force. The conditions of cancellation of those contracts are determined by housing legislation.

Persons residing in pledged residential premises, who have the right of lifetime use of the residential premises under a legacy, may not be evicted upon the realization of the pledged residential premises.

4. Execution on a share of the right of common ownership to common property of an apartment building (article 274 of the Civil Code of the Republic of Belarus) may only be levied simultaneously with the execution on an apartment in that house.

 

CHAPTER 13

FINAL PROVISIONS

 

Article 54. Transitional Provisions

 

Rules of this Law shall apply to relations on mortgage which arose after its entry into force. Mortgage contracts concluded prior to the entry into force of this Law, are effective for a period of time specified in them and are not subject to bringing into compliance with the requirements of this Law.

 

Article 55. Implementation of Provisions of this Law

 

The Council of Ministers of the Republic of Belarus, within six months from the date of the official publication of this Law, shall:

bring decisions of the Government into compliance with this Law;

ensure that the state government bodies subordinated to the Government of the Republic of Belarus bring their normative legal acts into compliance with this Law;

take other measures necessary for the implementation of the provisions of this Law.

 

Article 56. Entry into Force of this Law

 

The Law shall enter into force in six month after its official publication, with the exception of this article and article 55, which enter into force from the date of the official publication of this Law, as well as normative regulatory requirements governing the issuance and circulation of a paperless mortgage note, which enter into force one year after the official publication of this Law.

 

President of the Republic of Belarus

A. Lukashenko

 

* unofficial translation *