1. Upon the claim of a debtor, a creditor, when accepting an execution, shall be obliged to issue to him a written confirmation of receipt of the execution in full or in part.
When the debtor issues to the creditor a debt document to certify the obligation, then the creditor accepting the execution must return that document to the debtor. Where it is impossible to return, he must indicate that in the receipt which he issues.
The receipt may be substituted by an inscription on the debt document which is returned to the debtor.
2. The placement of the debt document with the debtor shall certify, unless the contrary is proven, the termination of the obligation.
3. In the case of the refusal by the creditor to issue a receipt for the execution, to return the debt document, or to indicate the impossibility of its return in the receipt, the debtor shall have the right delay execution. In that case the creditor shall be deemed to be delaying.
Article 291. The Execution of an Obligation by Deposing the Debt
1. A debtor in order to execute obligations shall have the right to place on the terms of depositing the money he owes, and securities - on the terms of custody in the name of a notary and in the cases established by legislative acts - in the name of the court, if the obligation may not be executed by the debtor as a result of the following:
1) absence of the creditor or the person who is authorized by him to accept the execution in the place where the obligation must be executed;
2) incapacity of the creditor and his not having a representative;
3) obvious lack of certainty as to who the creditor is with regard to the obligation, particularly, in connection with a dispute about that between the creditor and other persons;
4) evasion by the creditor of acceptance of the execution, or any other delay on his behalf;
2. The placement of money or securities on the terms of depositing or custody in the name of notary or a court shall be deemed to be execution of an obligation.
A notary or a court in whose name money or securities are deposited, shall notify the creditors accordingly.
Chapter 18. Securing Execution of Obligations
Paragraph 1. General Provisions
Article 292. Methods of Securing the Execution of Obligation
1. The execution of an obligation may be secured with damages, pledge, lien on the debtor's property, sureties, guarantee, advance payments, and other methods provided for by legislation or the agreement.
Methods of securing the execution of obligations concerning the securities shall be established by the legislative acts of the Republic of Kazakhstan, regulating the activity in the security market.
2. The invalidity of an agreement on securing an obligation shall not entail the invalidity of that obligation (the principal obligation).
3. The invalidity of the principal obligation shall entail the invalidity of the obligation which secures it.
Paragraph 2. Forfeit
Article 293. The Definition of Forfeit
Damages (fine, penalty) shall be recognized as a monetary amount defined by legislation or agreement, which must be paid by a debtor to the creditor in the case of failure to execute, or improper execution of an obligation, in particular, in the case of a delay in execution. Upon the claim to pay the damages, the creditor shall not be obliged to prove losses caused to him.
Article 294. The Form of an Agreement on Forfeit
The agreement on damages must be committed in writing, irrespective of the form of the principal obligation.
Failure to comply with the written form requirement shall entail invalidity of the agreement on damages.
Article 295. Legal Forfeit
1. A creditor shall have the right to claim the payment of damages as determined by legislation (legal damages), irrespective of whether the obligation for its payment is stipulated in the agreement of the parties.
2. The amount of the legal damages may be increased by agreement of the parties, provided legislation does not prohibit it.
Article 296. Amount of Forfeit
The amount of forfeit shall be determined in a fixed monetary amount or in a percentage of the amount in default or the amount of the improperly executed obligation.
Article 297. The Reduction of the Amount of Forfeit
If the damages (fine, penalty) which is subject to payment is exorbitantly large as compared to the losses of the creditor, the court shall have the right to reduce the damages (fine, penalty), considering the degree of the execution of the obligation by the debtor and the interests of the debtor and the creditor, which merit attention.
Article 298. The Grounds for Levying Forfeit
Damages shall be levied for failure to execute or for improper execution of an obligation, when the conditions exist for holding the debtor responsible for violation of the obligation (Article 359 of this Code).
Paragraph 3. Pledge
Article 299. Definition of Pledge
1. Pledge shall be recognized as a method of securing the execution of an obligation, by which a creditor (pledge holder) has the right, in the case of failure by the debtor to execute the obligation secured with the pledge, to receive satisfaction from the value of the pledged property, in a priority procedure before the other creditors of the person to whom that property belongs (pledger), with the exceptions established by this Code.
The pledge holder shall have the right to receive on the same principles as satisfaction from the insurance compensation for the loss or damage to the pledged property, irrespective of for whose benefit it is insured, unless the loss or damage took place for reasons outside the control of the pledge holder.
2. The pledge of enterprises, buildings, installations, apartments, rights to land plots and any other immovable property (mortgage) shall be regulated by the Law of the Republic of Kazakhstan Concerning Mortgage of Immovables. The general rules concerning pledge, which are contained in this Code shall apply to mortgage in the cases where the Law of the Republic of Kazakhstan Concerning Mortgage does not stipulate any other rules.
3. The pledge of the air and sea vessels, vessels of domestic water travel, vessels of river and sea sailing (mortgage of the vessel) which are subject to state registration, shall be regulated by the special legislative acts of the Republic of Kazakhstan. The general rules concerning pledge, which are contained in this Code shall apply to mortgage of the vessel in the cases where the Law of the Republic of Kazakhstan Concerning Mortgage does not stipulate any other rules.
The requirements of the part one of this Article shall also extend to the building sea vessels, vessels of domestic water travel, vessels of river and sea sailing.
Article 300. The grounds for the emergence of pledge
1. Pledge shall arise by virtue of an agreement. Pledge shall arise also on the basis of legislative acts when the events indicated therein take place, provided the legislative acts specify what property is recognized as held under pledge and which obligations are secured.
2. The rules of this Code concerning the pledge, which arises by virtue of an agreement, shall appropriately apply to a pledge which arises on the basis of legislative acts, unless legislative acts stipulate otherwise.
Article 301. Subjects of a Pledge
1. Any property including objects and property rights (claims), except for the objects which are excluded from circulation (paragraph 2 of Article 116 of this Code), claims which are inseparably associated with the person of the creditor, in particular the claims of alimony, compensation for harm caused to life or health, and other rights the assignment of which to any other person is prohibited by legislative acts, may be subject of a pledge.
2. The right to pledge may be applied by agreement to the property which will come into ownership or under business authority of the pledger in the future.
3. Pledge of certains of property, in particular the property of citizens upon which it is prohibited to make claims, may be restricted or prohibited by the legislative acts.
4. is excluded
5. is excluded
Article 302. Claims which are secured by Pledge
1. Unless it is otherwise stipulated by the agreement or legislative acts, the pledge shall secure a claim in the volume which it has at the moment of the actual satisfaction, including remuneration (interest), and compensation of losses incurred by delay in the execution, damages (fine, penalty), the necessary expenses associated with the maintenance of the pledged property, and also the compensation for the costs associated with the collection.
2. Pledge may be established in respect to the claims which will arise in the future, provided the parties agree on the amount of such claims, which is secured by the pledge.
Article 303.s of Pledge
1. Mortgage is a of pledge under which the pledged property remains in the possession and use of the pledger or a third person.
Enterprises, structures, buildings, installations, apartments in blocks of apartments, transport vehicles, outer space objects, goods in circulation and other property which is not excluded from the civil circulation, may be subject to mortgage.
Separable fruits may be subject to mortgage only on the condition that they do not become subject to rights of any third party from the moment of separation. The mortgage of enterprises, structures, buildings, installations, apartments in blocks of apartments, transport vehicles and cosmic objects shall be subject to registration at the bodies which carry out the registration of such objects.
2. Pawning shall be the of pledge whereby the pledged property is transferred by the pledger into the possession of the pledge holder.
With the consent of the pledge holder the pledged objects may be left with the pledger under lock and seal of the pledge holder. The pledged object may be left in the possession of the pledger with the application of the signs which witness the pledge (secure pledge).
3. In the pledge of rights, the property rights which may be alienated may be subject to pledge, and in particular, the leasing rights to enterprises, structures, buildings, installations, the right to a share in the assets of a business partnership, debt claims, copyright, inventor's rights and other property rights.
The pledge of the rights to a land plot and also of the rights to other natural resources shall be allowed within the limits and under the conditions stipulated in the legislation concerning land and any other natural resources.
A term right may be subject to pledge only prior to the expiry of the term of its validity.
The debtor of a pledged right must be notified of the pledge.
When a pledged right is confirmed by a document, the pledge agreement may be documented in the form of a transfer of the document which establishes the right.
3-1. In the pledge of the bank deposit, the rights of the depositor according to the bank deposit agreement shall be pledged. Pledger-depositor shall be obliged to inform bank in writing about the pledge of the bank deposit, indicating the records of the pledgeholder.
4. Pledge of securities shall be carried out in accordance with the legislation concerning the Security Market
5. Unless it is otherwise stipulated in the pledge agreement, money which are the pledged object shall be placed in a bank.
Remuneration (interest) owing on those funds shall belong to the pledger, unless otherwise specified by the agreement.
Money may be passed to the pledger or another person subject to terms limiting the opportunity of using the pledged money by that person (keeping in the bank cash box, box of the safe separate premise for keeping). Non-fulfillment of the terms limiting the opportunity of using the pledged money by the person shall be the basis for his liability for unjust enrichment from the moment he received money.
Article 304. The Pledge of the Property which is in Common Ownership
The property which constitutes common property may be pledged only with the consent of all the owners. The right to a share in common property may be an independent subject of the pledge.
Article 305. A Pledger
1. Both the debtor and a third party may be pledgers.
2. The owner of an entity, or with the consent of the owner, any other person who has in respect to that entity the right of business authority, may be pledgers, unless it is otherwise provided for by legislative acts.
3. A person to whom the right to be pledged belongs may be a pledger of the right.
The pledging of the right to lease or any other right to somebody else's object shall not be allowed without consent of its owner, or of the person who has, in respect to that object the right of business authority, when legislative acts or an agreement prohibit the alienation of that right without consent of specified persons.
Article 306. Insuring Pledged Assets
1. An agreement or legislative acts may impose upon the pledge holder the obligation to insure the pledged property transferred to his possession.
Insuring of pledged assets which remain in the use of the pledger shall be imposed upon the latter.
2. In the case of the occurrence of an insurable event, the right to claim the assets pledged in accordance with the insurance agreement shall be acquired by the pledger only in the case of the refusal of the claim by the pledge holder.
When the amount of insurance compensation exceeds the amount of the obligation secured with the pledge, the pledge holder shall be obliged, within three banking days from the moment of its receipt, to transfer the difference to the pledger.
Article 307. Contents and the Form of the Pledge Assets
1. A pledge agreement must indicate the pledged object and its evaluation, including the amount and the deadline for the execution of the obligation which is secured with the pledge. It must contain an indication of which of the parties is to keep the pledged property and whether it is allowed to use it.
Assessment of the property to be expressed shall be figured out in Tenge and may be specified by the agreement of the parties, unless otherwise provided by the laws of the Republic of Kazakhstan. Appraisal of the property to be collateralized, bonding in the foreign currency, shall be figured out in Tenge and in the obligation currency according to the market price of the currency exchange as of the date of the conclusion of the pledge agreement.
2. A pledge agreement must be concluded in writing.
3. Failure to comply with the rules contained in paragraphs 1 and 2 of this Article shall entail invalidity of the pledge agreement.
Article 308. Registration of Pledge
1. Pledge of property which is subject to state registration must be registered with the body which carries out the registration of that property, unless otherwise arises out of this Code.
Pledge of immovable property which is subject to state registration must be registered with the body which carries out the registration of immovable property.
2. The change of the subject of the pledge shall be registered.
Other changes of the pledge may be registered at the wish of the participants.
3. A record concerning the termination of pledge shall be registered when:
1) registering the termination of pledge on the basis of the application of the pledger in view of implementation of the basic obligation;
2) levying of execution on the subject of the pledge in the order, established by the legislative acts of the Republic of Kazakhstan;
3) registering the termination of pledge in view of termination of the pledge agreement;
4) termination of the pledge otherwise, provided by the Article 322 of this Code.
4. A pledger who executed an obligation secured with a pledge shall have the right to claim the annulment of the note of the pledge from the register. Upon the claim of the pledger, the pledge holder shall be obliged to present to the body which carries out the registration the necessary documents and written applications. In the case of failure to execute, or an untimely execution by the pledge holder of those obligations, the pledger shall have the right to claim compensation of losses inflicted on him.
Article 309. Assets to which the Rights of a Pledge Holder Apply
1. Unless it is otherwise stipulated in the agreement or legislative acts, the rights of the pledge holder (the right to pledge) in respect to the object which is pledged object, shall apply to its accessories and inseparable goods.
In the cases stipulated in the agreement or legislative acts the right to pledge shall apply to the separable fruit, production and income received as a result of the use of the pledged property.
2. In the case of mortgage of an enterprise or any other property complex as a whole, the right of pledge shall apply to all the property, both movable and immovable, including the right to claim and exclusive rights, including those acquired during the mortgage, unless it is otherwise stipulated in legislative acts or the agreement.
3. Mortgage of a building or installation shall be allowed only with a simultaneous mortgage through the same agreement of the land plot on which the building or installation is located, or of the part of the plot which is functionally related to the mortgaged facility.
Article 310. The Emergence of the Right to Pledge
1. Unless it is otherwise stipulated in the pledge agreement, the right to pledge shall arise in respect to the property, the pledging of which is subject to registration, - from the moment of the registration of the agreement, and in respect of other property, - from the moment of the transfer of that property to the pledge holder, and where it is not subject to transfer, from the moment of concluding the pledge agreement.
2. The right to pledge goods in circulation shall arise in accordance with the rules of paragraph 2 of Article 327 of this Code.
Article 311. Subsequent Pledge (Re-pledge)
1. When pledged property becomes subject to another pledge to secure any other claims (re-pledge), then the claims of the subsequent pledge holder shall be satisfied from the value of the pledged object after the satisfaction of the claims of previous pledge holders.
2. Re-pledge shall be allowed unless it is prohibited by the previous pledge agreements.
3. The pledger shall be obliged to communicate to each subsequent pledge holder information concerning all the existing pledges of that property and he shall be liable for losses inflicted upon the pledge holders by failure to execute that duty.
Article 312. Maintenance and Safety of Pledged Assets
1. The pledger or the pledge holder, depending on which of them keeps the pledged property, unless it is otherwise stipulated in legislative acts or the agreement, shall be obliged as follows:
1) to take measures which are required to ensure the safety of pledged property including for its protection from encroachments and claims by third persons;
2) immediately notify the other party of the emergence of a threat of losing or damaging pledged property.
2. The pledge holder and the pledger shall have the right to check against documents and to verify the physical presence, size, status and conditions of storage of pledged assets which are kept by the counter party.
3. In case of a gross violation by the pledge holder of the obligations indicated in paragraph 1 of this Article, which creates the threat of loss or damage to pledged property, the pledger shall have the right to claim a premature termination of the pledge.
Article 313. The Consequences of a Loss or Damage to Pledged Assets
1. A pledger shall bear the risk of an accidental destruction or damage to pledged assets, unless it is otherwise stipulated in the pledge agreement.
2. A pledge holder shall be responsible for a full or partial loss or damage of the pledged object entrusted to him, unless he proves that he may be exempt from the responsibility in accordance with Article 359 of this Code.
3. A pledge holder shall be responsible for the loss of a pledged object in the amount of its actual value, and for any damage to it, - in the amount by which that value was reduced, irrespective of the amount at which the pledged object was evaluated when it was transferred to the pledge holder.
4. If as a result of damage to a pledged object, it has changed so much that it may not be used in accordance with its direct designation, the pledger shall have the right to reject it and to claim compensation for its loss.
5. The agreement may envisage the obligation of the pledge holder to also compensate the pledger for any other losses inflicted by the loss or damage to the pledged object.
6. A pledger who is the debtor in an obligation secured with pledge shall have the right to offset a claim of compensation for losses caused by the loss or damage to the pledged object against the pledge holder, as repayment of the obligation secured with the pledge.
Article 314. Replacement and Restitution of a Pledged Item
1. The replacement of a pledged object shall be allowed with the consent of the pledge holder, unless legislative acts or the agreement stipulate otherwise.
2. When a pledged object is destroyed or damaged, or the right to own or the right of business authority of it ceased on the grounds established by legislative acts, the pledger shall have the right within a reasonable period to restore the pledged object or replace it with any other equally valued asset.
Article 315. Use and Disposal of Pledged Objects
1. A pledger shall have the right, unless it is otherwise stipulated in the agreement and does not ensue from the essence of the pledge, to use the pledged object in accordance with its designation, in particular, to derive produce and income from it.
2. Unless it is otherwise stipulated in legislative acts or the agreement, and does not ensue from the essence of the pledge, the pledger shall have the right to alienate pledged objects into ownership, business authority or operational management, to transfer it into lease or charge-free use to another person, or in any other way dispose of it, only with the approval of the pledge holder.
An agreement which restricts the right of a pledger to bequest pledged property shall be invalid.
3. A pledge holder shall have the right to use the pledged object entrusted to him, only in the cases which are stipulated by the agreement, and regularly present to the pledger reports on its use. In accordance with the agreement, the pledge holder may be entrusted with the duty to derive fruit and income from the pledged object for the purpose of repaying the principal obligation or in the interests of the pledger.
Article 316. Protection by a Pledge Holder of His Rights to Pledged Items
1. A pledge holder who held or should have held pledged property, shall have the right to claim it from anybody else's illegal possession including from the pledger himself.
2. In the cases where, in accordance with the agreement, the pledge holder is granted the right to use the pledged object entrusted to him, he may claim from other persons, including from the pledger the elimination of any violations of his right, even though those violations are not related to deprivation of possession.
Article 317. The Grounds of the Imposition of Claims on Pledged Property
1. Claims on pledged property for the satisfaction of claims of the pledge holder (creditor) may be imposed in the case of a failure to execute or improper execution by the debtor of the obligation secured with the pledge for which he is liable.
2. The imposition of a claim on pledged property maybe denied when the violation committed by the debtor of the obligation which is secured with the pledge, is extremely insignificant, and the amount of the claim of the pledge holder as a result of that is clearly disproportionate with the value of the pledged property.
Article 318. The Procedure for the Imposition of Claims on Pledged Items
1. Satisfaction of a claim of a pledger out of the value of pledged property shall be carried out in accordance with the judicial procedure, unless it is otherwise stipulated in this Code or other legislative acts or the agreement.
2. In the cases stipulated in the pledge agreement and also in this Code and other legislative acts, the pledger shall have the right to independently sell pledged assets in a compulsory non-judicial procedure by way of holding a tender sales (auction). A bank which is a pledge holder shall have the same right to sell pledged objects which secure monetary loans. Forced out-of-court realization of the pledged immovable property shall not be allowed in the cases, provided by the legislative acts of the Republic of Kazakhstan concerning the mortgage of the immovable property.
Article 319. Sale of Pledged Property
1. The sale of pledged property upon which in accordance with Article 20 of this Code a claim is imposed, shall be carried out by way of selling through public auctions in accordance with the procedure which is established by the procedural legislation, unless legislative acts stipulate any other procedure.
1-1. In the pledge of money and rights (requirements) on the money liabilities, the selling of that pledged property shall be conducted by way of transferring of money to the pledge holder, which is the subject of the pledge or which is owed to the pledged rights (requirements) for the money liabilities, and when the transfer of money at the moment of levying of execution for the subject of pledge is impossible - by way of transferring to the pledge holder of the right of the pledger for the subject of pledge.
If a sum of money, which is the subject of the pledge or which is owed to the pledged rights (requirements) for the money liabilities, exceeds the size of the requirement of the pledge holder secured by pledge, the margin shall be returned to the pledger. If a sum of money is insufficient to cover the requirements of the pledger, he shall have the right, in the absence of another instruction in the legislative acts or in the agreement, to take the deficit from the other property of the debtor, without using the advantage, based on the pledge.
2. Special considerations in selling pledged assets in a compulsory non-judicial procedure shall be established by this Code and the Law «On Mortgage of Real Property». The rules and procedures established for selling mortgages by the Law «On Mortgage of Real Property», shall apply to selling of property when others of pledge are executed, unless this Code stipulates otherwise.
3. Upon the request of a pledger, the court shall have the right in the decision on imposition of a claim on pledged property to delay its sale through public auctions for a period up to one year. The delay shall not affect the rights and obligations of the parties in respect to the obligation secured with the pledge of that property, and it shall not exempt the debtor from the repayment of the creditor's losses and amounts of damages which have increased during the period of the delay.
4. Any legal entities and citizens, including the pledger and the pledge holder, shall have the right to participate in the auction.
Prior to the beginning of the auction, the court or any nominated person (Article 320 of this Code) shall have the right to require the payment of a guarantee contribution from each of the participants in the auction. The guarantee contributions shall be subject to refund after the auction. A guarantee contribution by a participant who won the auction shall be included in the amount of the final price. A guarantee contribution of a participant who won the auction but who did not pay the final price shall not be refunded and it shall remain at the disposal of the court or the nominated person.
5. When an auction is announced as invalid, because of the participation in them of less than two buyers, the pledge holder shall have the right either to turn the pledged assets into his own property at its current estimated value, which is established by the court decision, or by the nominated person on the basis of the report of the private persons or legal entities that have licenses for the performance of activities associated with appraisal of property or to require the organization of a new auction.
6. When the amount which is received from selling pledged property is insufficient to cover the claims of the pledge holder, he shall have the right, in the absence of another indication in the legislative acts or agreement, to receive the amount of arrears from other property of the debtor without using the advantages based on the pledge.
When the amount received in selling pledged property exceeds the amount of the claim of the pledge holder, secured with the pledge, the difference shall be returned to the pledger.
7. A debtor and a pledger who is a third party (proprietary surety) shall have the right, at any time prior to when the sale of the pledged object took place, to terminate the imposition of the claim on it and its sale, after executing the obligation secured with the pledge or a part of it the execution of which was delayed. An agreement which restricts this right shall be invalid.
Article 320. Sale of the Pledged Property in a Compulsory Non-judicial Procedure
1. When disposing a pledged property in a compulsory non-judicial procedure, the auction shall be carried out by the nominated person, who may be a legal entity or a citizen who has the power of attorney from the pledge holder, to sell the pledged property in the case of violation of the obligation secured with the pledge.
2. The nominated person shall carry out the following procedure:
1) compile notification to the pledger of the non-execution of the obligations and register it at the body where the pledge agreement was registered;
2) in the case where the claims which ensue from the notice are not satisfied, but not earlier than two months after the moment of its dispatch to the pledger, compile the notice of auction of the pledged property, register it with the body where the pledge agreement was registered, and hand it to pledger;
3) officially publish the announcement of the auction in the local press.
Article 321. Premature Execution of an Obligation which is Secured with the Pledge and the Imposition of a Claim upon the Pledged Property
1. A pledge holder shall have the right to claim a premature execution of obligations secured with pledge in the following cases:
1) when the pledged object went out of possession of the pledger with whom it was left not in accordance with the provisions of the pledge agreement;
2) violation by the pledger of the rules for the replacement of pledged property (Article 314 of this Code);
3) the loss of the pledged object under the circumstances for which the pledge holder is not responsible (paragraph 2 of Article 313 of this Code), unless the pledger exercises the right stipulated in paragraph 2 of Article 314 of this Code.
4) addressing the levy concerning the pledge in order to fulfill obligations of the pledger on enforcement documents to the third persons, not having advantages in the requirements of the pledge holder, if the pledger hasn’t any other property.
2. A pledge holder shall have the right to claim a premature execution of the obligation secured with pledge, and if his claim is not satisfied, to impose the claim upon the pledged object in the following cases:
1) violation by the pledger of the rules concerning subsequent pledge;
2) non-execution by the pledger of the obligations stipulated in sub-paragraphs 1 and 2 of paragraph 1 and paragraph 2 of Article 312 of this Code;
3) violation by the pledger of the rules for disposal of pledged property (paragraph 2 of Article 315 of this Code).
Article 322. Cessation of Pledge
1. Pledge shall cease as follows:
1) with the cessation of the obligation secured with pledge;
2) upon the claim of the pledger, where the grounds exist which are stipulated in paragraph 3 of Article 312 of this Code;
3) in the case of destruction of a pledged object or cessation of the pledged right, unless the pledger failed to exercise the right stipulated in paragraph 2 of Article 314 of this Code;
4) in the case of selling pledged property through a public auction and also in the event that its sale turned out to be impossible (Article 319 of this Code).
2. A note must be made on the cessation of pledge in the register in which the pledge agreement was registered.
3. In cessation of pledge as a result of the execution of the obligation secured with the pledge, or by demand of the pledger (paragraph 3 of Article 312 of this Code), the pledge holder who holds pledged property shall be obliged to immediately return it to the pledger.
Article 323. Preservation of Pledge in the Transfer of the Right to Pledged Property to Another Property in the Procedure of Legal Successorship
1. In the case of a transfer of the right to own pledged property or the economic management over it, from the pledger to any other person as result of a chargeable or charge-free alienation of that property, or in the procedure of the universal legal successorship, the right of pledge shall remain valid.
The legal successor of a pledger shall take the place of the pledger, and he shall bear all the obligations of the pledger, unless the agreement with the pledge holder stipulates otherwise.
2. When the assets of a pledger, which are the pledged objects are transferred in accordance with the procedure of legal successorship to several persons, then each of the legal successors (acquirers of the property) shall bear the consequences of non-execution of the obligation secured with pledge, which ensue from the pledge in proportion to the part of the property which was acquired by him. However, where a pledged object is indivisible or for any other reasons remains in common joint ownership of legal successors, they shall become joint pledgers.
Article 324. The Consequences of Compulsory Withdrawal of Pledged Property
1. When the pledger's right to own the property which is the pledged property ceases upon the grounds and in accordance with the procedure stipulated in legislative acts, as a result of withdrawal (purchase) for state needs, requisition or nationalization, and the pledger is granted other property or appropriate compensation, the right to pledge shall apply to the property granted instead, or where appropriate, the pledge holder shall acquire the right of priority satisfaction of his claims out of the amount of the remuneration which is due to the pledger. A pledge holder may also require premature execution of the obligation which is secured with pledge (paragraph 1 of Article 321 of this Code).
2. In the cases where the property which is pledged is confiscated from the pledger in accordance with the procedure established by the legislative acts, on the grounds that in reality the owner of that property is a different person, or in the form of a sanction for the commission of a crime or any other violation, the pledge in respect to that property shall cease. In those cases, the pledge holder shall have the right to claim a premature execution of the obligation secured with the pledge.
