What is the purpose of a pledge agreement?
At the legislative level, the concepts of pledge and the features of its use as a type of security for obligations, as well as types of pledge are regulated in Chapter 49 of the Civil Code of Ukraine, the Law of Ukraine "On Pledge", "On Mortgage" and other regulatory legal acts.
Pledge is one of the oldest ways to ensure the fulfillment of obligations. The purpose of a pledge is to encourage the proper performance of obligations. Proper fulfillment of obligations contributes to the stability of the position of participants in civil transactions. Its history dates back to Roman law.
If it is necessary to draw up an individual pledge agreement, we recommend using the legal services of the Consultant to order a turnkey document.
A little more about the pledge agreement
Under a pledge agreement, it is secured by a pledge of fulfillment by the pledger of obligations under the loan agreement concluded between the pledgee and the pledger, under the terms of which the Pledgor, in particular, is obliged to return the loan to the Pledgee, pay accrued interest for using the loan, a penalty in the amount and in cases provided for by the loan agreement and this agreement, as well as other expenses for the implementation of the secured claim.
Typical responsibilities of a pledger:
pledge property;
use the property on the basis of the restrictions provided for by the contract;
take all necessary measures to preserve property;
bear responsibility for the risk of accidental death or loss of property;
not to alienate, transfer property, its subsequent pledge without the written consent of the pledgee;
immediately notify the pledgee about the change in the location of the property, about any other changes.
Typical rights of the pledgee:
check the availability, condition, size and conditions of storage of property;
require the pledger to take measures necessary to preserve the property;
require the pledger to replace the subject of pledge in case of deterioration of its condition and the threat of loss, damage or reduction in its value;
satisfy at the expense of the pledged property all its claims against the debtor under the main obligation in full;
sell the pledged property or accept it on your balance sheet.
The structure of the agreement is quite simple. At the same time, one should pay attention to the fact that only a lawyer can provide an objective assessment of the document that is planned to be signed.
Features of the pledge agreement: what to look for?
In a general form, the subject of pledge is defined in Part 2, Article 4 of the Law of Ukraine "On Pledge", which states that the subject of pledge may be property that, in accordance with Ukrainian legislation, the pledgor may alienate and which may be levied.
Mortgage agreements and conclusions are varieties of a pledge agreement. A mortgage is a pledge of real estate, including land. A pledge is a pledge of movable property, which at the time of the contract is transferred into the possession of the pledgee or, by his order, into the possession of a third party.
Therefore, if it is necessary to analyze the agency agreement or develop an individual document, we suggest using our legal services "Consultant". Our specialists will be able to best assist in the preparation of the document, and if necessary, create a completely new one in accordance with your situation.
Pledge agreement template
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Download the mobile application "Consultant";
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