3. In long retire of obligations, there may be provided indexation of payments on the conditions provided by the parties.
Article 283. Increase of the amounts which are payable for the maintenance of a citizen
With an official increase of the minimum monthly wage, the amounts which are payable on a monetary obligation directly on the maintenance of a citizen (the compensation for harm done to life or health, in accordance with the agreement of life-long support, etc.), shall be increased proportionally.
Article 284. Fulfillment of reciprocal liabilities
1. Reciprocal liabilities must be fulfilled by the parties simultaneously, unless it otherwise follows from legislation, traditions of the business practice, conditions of the obligation or its essence.
2. Non-fulfillment or improper fulfillment by one of the parties of an obligation shall free the other party from the fulfillment of its mutual obligations and from satisfying counter-claims of the fulfillment of the duties, unless the legislative ,acts, or the conditions of the obligation provide otherwise.
Article 285. Fulfillment of an alternative obligation
A debtor who is obliged to make one of two things or several actions shall have the right to select. unless the legislation or conditions of the obligation provide otherwise.
Article 286. Fulfillment of an obligation in which several creditors or several debtors participate
When in an obligation there participate several creditors or several debtors (obligation with a number of persons), then either of the creditors shall have the right to claim the fulfillment and each of the debtors shall be obliged to fulfill the obligation in a share equal to others, unless it follows otherwise from the legislation or the conditions, of the obligation (shared obligation).
Article 287. The fulfillment of a joint obligation
1. An obligation with a number of persons, by virtue whereof each creditor has the right to claim, and each debtor is obliged to fulfill the obligation in full, shall be recognized a joint obligation.
A joint obligation or a joint claim shall arise if it is provided in the agreement or established by the legislative acts, in particular, where the subject of the obligation is indivisible.
2. The duties of several debtors in respect of in obligation associated with entrepreneurial activities, equally with the claims of several creditors in such all obligation shall be joint, unless the legislation or the conditions of the obligation provide otherwise.
3. In joint obligation of debtors the creditor shall have the right to claim the fulfillment both from all the debtors and from any one of them separately, in that respect, both in full and in the part of the debt. The creditor who does not receive complete satisfaction from one of the joint debtors shall have the right to claim the amount in default from the other joint debtors.
The joint debtors shall remain obliged until the obligation is fulfilled in full. The fulfillment of a joint obligation in full by one of the debtors shall free the other debtors from the fulfillment to creditor.
4. In a solidarity of the claims, any of the joint creditors shall have the right to present to the debtor the claim in full volume.
The fulfillment of all obligation in full to one of the solidary creditors shall exempt the debtor from the fulfillment to the other creditors.
5. In the case of a solidary obligation the debtor shall not have the right to make objections against the claims of the creditor which are based on such relations of the other debtors to the creditor in which that debtor does not participate.
In the case of a solidarity of the claims, the debtor shall not have the right to make obligations against the claims of one of the solidary creditors, which are based on such relations of the debtor to any other solidary creditor, in which that creditor does not participate.
Article 288. The fulfillment of a subsidiary obligation
The legislative acts or conditions of all obligation between a creditors and the debtors may provide that in the case of a failure by the principal debtor to satisfy the claim of the creditor to fulfill the obligation, that claim may be made to the other debtor (a subsidiary debtor) in as much as it concerns the unfulfilled part.
Article 289. Recourse
1. A debtor who fulfilled an obligation of another person, shall have the right of recourse to that person in the amount of the obligation fulfilled.
A debtor who does not fulfill an obligation as a result of the actions of a third party, shall have the right to claim compensation for the losses from that party.
2. A debtor who fulfilled a joint obligation shall have the right to return claim to each of the other debtors in equal shares less the share which is his own share.
The amount unpaid by one co-debtor to the debtor who fulfilled a solidary obligation shall equally fall on that debtor and on the other co-debtors.
The rules of this paragraph shall apply appropriately when terminating solidary obligations by reckoning counter claims of one of the debtors.
3. A joint creditor who receives a fulfillment from his debtor shall be obliged to recompense to the other creditors the shares which are due to them, unless it otherwise follows from relations between them.
Article 290. Certification of the fulfillment of an obligation
1. A creditor when accepting a fulfillment shall be obliged upon the claim of the debtor issue to him a receipt of receiving the fulfillment in full or in part.
When the debtor issues to the creditor a debt document to certify the obligation, then creditor accepting the fulfillment must return that document to the debtor. Where it is impossible to return he must indicate that in the receipt issued by himself.
The receipt may be substituted by the 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 the receipt about the fulfillment, to return the debt document or to indicated the impossibility of its return in the receipts the debtor shall have the right delay the fulfillment. In that case the creditor shall be deemed to be delaying.
Article 291. Fulfillment of obligations by placement of debt into deposit
1. When an obligation may not be executed by a debtor- as a result of the following, the debtor shall have the right to pay the money which are owed by him or securities into deposit at a notary office, and in the cases established by the legislative acts, into deposit at the court:
1) absence of the creditor or the person who is authorized by him to accept the fulfillment in the place where the obligation must be fulfilled;
2) incapacity of the creditor and no representative of his;
3) an obvious absence of certainty in respect of one who is the creditor on the obligation, and in particular, in relation to a dispute in that respect between the creditor and any other person;
4) evasion of the creditor from accepting the fulfillment, or other delinquency on his behalf.
2. The contribution of a sum of money or securities into deposit at a notary office or a court is deemed to be the fulfillment of the obligation.
The notary office or the court, into deposit whereof the money or securities are lodged, shall thereof notify the creditor.
Chapter 18. Securing the Fulfillment of Obligations
1. General Provisions
Article 292. Methods of securing the fulfillment of obligations
1. The fulfillment of obligations may be insured by forfeit, pledge, retention of assets of the debtor, warranty, guarantee, advance payments or any other methods which are provided in the legislation or agreement.
2. The invalidity of an agreement on securing an obligation shall not result in the invalidity of the oblation (the principal obligation).
3. The invalidity of the principal obligation shall result in the invalidity of the obligation which secures it.
2. Forfeit
Article 293. The concept of forfeit
The forfeit (fine, penalty) shall be recognized as a monetary amount defined by the law which must be paid by a debtor to his, creditor in the case of a failure to fulfill or of improper fulfillment of an obligation, in particular, in the case of a delay in the fulfillment. Upon the claim to pay the forfeit, the creditor shall not be obliged to prove losses inflicted on him.
Article 294. Form of a forfeit agreement
The agreement on forfeit must be committed in writing, irrespective of the form of the principal obligation. The failure to comply with the written form shall result in invalidity of the agreement concerning forfeit.
Article 295. Legal forfeit
1. A creditor shall have the right to claim the payment of forfeit which is determined by the legislation (legal forfeit), irrespective of whether the obligation of its payment is provided in the agreement of the parties.
2. The amount of the legal forfeit may be increased by agreement of the parties, provided the 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 improperly fulfilled obligation.
Article 297. Reduction of the amount of forfeit
Where forfeit (fine, penalty) which is subject to payment is exorbitantly great as compared to the losses of the creditor, the court shall have the right to reduce the forfeit (fine, penalty), considering the degree of the fulfillment of the obligation by the debtor and the interests of debtor and creditor which are worth attention.
Article 298. The bases for recovering a forfeit
A forfeit shall be recovered for a failure to fulfill or for all improper fulfillment of an obligation, when the conditions are available for the subjection of the debtor to responsibility for violation of the obligation (Article 359 of the present Code).
3. Pledge
Article 299. Concept of pledge
1. Pledge shall be recognized as such a method of ensuring the fulfillment of obligations, by virtue of which a creditor (pledgeholder) shall have the right in the case of a failure by the debtor to fulfill the obligation secured with the pledge, to receive the satisfaction from the value of the pledged assets, in a priority procedure before the other creditors or the person to whom those assets belong (pledgor), with the exceptions established by the legislative acts.
The pledgeholder shall have the right to receive on the same principles the satisfactions 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 pledgeholder.
2. The pledge of enterprises, buildings, installations, apartments, rights to land plots and any other- immovable assets (mortgage) shall be regulated by the law of the Republic of Kazakstan Concerning Mortgage of Immovables. The general rules concerning pledge, which are contained in the present Code shall apply to mortgage in the cases where the law of the Republic of Kazakstan Concerning Mortgage does not provide any other rules.
Article 300. The bases for the emergence of pledge
1. Pledge shall arise by virtue of agreement. Pledge shall arise also on the- basis of the legislative acts at the advent of the circumstances indicated therein, provided the legislative acts provide what property and for securing of which obligations is recognized as held under pledge.
2. The rules of the present Code concerning pledge which arises by virtue of agreement, shall appropriately apply to pledge which arises on the basis of the legislative acts, unless the legislative acts provide otherwise.
Article 301. Pledgeable items
1. Any assets including objects and proprietary rights (claims), except for the objects which are reserved from the turnover (paragraph 2 of Article 116 of the present Code), the claims which are inseparably associated with the person of the creditor, in particular the claims of alimony, compensation for harm done to life or health, and other rights the assignment whereof to any other person is prohibited by the legislative acts, may be subject to pledge.
2. The right to pledge may be extended by agreement to the assets which win become property or received for business authority of the pledgor in the future.
3. Pledge of certain types 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. Pecuniary resources which are subject of pledge, shall be deposited to a bank or a notary office.
5. Pledge of securities of joint stock companies (including banks), any other business entities, shall be carried out taking into account the legislation concerning securities.
Article 302. Claims which are secured by pledge
1. Unless it is otherwise provided by the agreement or the legislative acts, pledge shall secure a claim in the volume thereof which it has at the moment of the actual satisfaction (including interest, compensation of losses, incurred by the delay of the fulfillment, forfeit, fine, penalty), the necessary expenses associated with the maintenance of the pledged assets, and also the compensation of the costs associated with the withdrawal.
2. Pledge may be established in respect of the claims which win rise in the future, on the condition that the parties agree on the amount of such claims, which is secured by the pledge.
Article 303. Types of pledge
1. Mortgage shall be the type of pledge under which the pledged assets remain in the ownership and use of the pledgor or a third person.
Enterprises or structures. buildings installations, apartments in blocks of apartments, means of transport, cosmic items, goods in turnover and any other assets which are not reserved from the civil rights turnover may be subject to mortgage.
The separable fruits may be subject to mortgage only under the condition that they are not subject to right 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 items shall be subject to registration at the bodies which carry out the registration of such items.
2. Pawning shall be the type of pledge where by the -pledged assets are transferred by the pledged to the possession of the pledgeholder.
With the consent of the pledgeholder, the items of pledge may be left with the pledgor under lock and seal of the pledgeholder. The item of pledge may be left in possession of the pledgor with the application of the marks or signs witnessing the pledge (fixed pledge).
3. Under the pledge of the right in the case of pledging the lives the property rights shall be subject to pledge which may be alienated in particular the leasing rights of an enterprise or structure, buildings, constructions, the right to a share in the assets of business partnership, death claims, copy rights inventors and any other property rights.
The pledge of the rights in respect of land plot and also rights in respect of any other natural resources shall be permitted within the limits and under conditions provided in the land and any other natural resources legislation.
The term rights may be subject to pledge only prior to the expiration of the term of its effect.
The debtor of pledge right must be notified of the pledge where the pledge rights are confirmed by the documents, the pledge agreements may be documented in a form of a transfer of the document which establishes the right.
4. In the case of pledging the property rights which are certified where the security shall be transferred to the pledgor or deposited with the notary unless the agreement provides otherwise.
5. Monetary resources which are subject to pledge shall be kept in a deposit interest which is accrued on that amount shall belong to the pledgor.
Article 304. The pledge of assets which are in joined ownership
The assets which constitute joined property may be transferred to pledge only with the consent of all the owners of the right to a share joined assets may be subject to independent pledge.
Article 305. Pledgor
1. Both the debtor and a third person may be pledgors.
2. Pledgor of a thing may be its owner or any person who has in respect of the of the item the right of business administration. The person to whom the item belongs under the rights of business authority shall have the right to pledge it without the consent of the owner unless the legislative acts prohibit the authorization of such things as the owner.
3. The pledgor of the right may be the person to whom belongs the right being pledged. Pledging the right to lease or any other right in respect of somebody's thing shall not be permitted without a consent of its owner or a person who has the right of business authority in respect of that thing unless the legislative acts or the agreement prohibits to alienate that right without a consent of the indicated persons.
Article 306. Insurance of pledges assets
1. The agreement of legislative acts may impose upon the pledgeholder the obligation to insure the assets transferred to his ownership and pledged.
Insuring pledged assets which remaining in the use of the pledgor shall be imposed upon the latter.
2. In the case of the occurrence of the insurance accident the right to claim in accordance with the insurance agreement to the pledged assets with the pledgor shall arise in only in the case of the refuse therefore of the pledgeholder.
Where the amount of the insurance compensation exceeds the amount of the obligation insured with the pledge the pledgeholder shall be obliged within three banking days from the moment o its receipt to transfer the difference to the pledgor.
Article 307. Contents of the form of the pledge agreement
1. The agreement of pledge must indicate the pledged item and its evaluation, the fulfillment of the obligation which is secured with the pledge there must also be provided the indication of which the parties shall keep the pledged asset and permissibility to use it.
2. The agreement of pledge must be concluded in writing. The agreements of mortgage and also the agreements of pledge of movable assets or the rights to assets to secure the obligations under agreements which must be notarized shall be subject to notarization.
3. The failure to comply with the rules contend in paragraph 2 and 3 of this Article shall result in the invalidity of the agreement of pledge.
Article 308. Registration of the agreements of pledge
1. The pledge of the assets which is subject to the state registration must be registered with the body which carries out the registration of those assets.
2. The body which carries out the registration shall be obliged to maintain the register of the registration of pledges and to adopt measures to protect interest of pledgeholders to prevent the alienation of pledgor assets without a consent of the pledgeholder.
When changing the nature and contents of a secured debt claim, an additional registration shall be carried out.
Where the right to own the pledged assets is assigned to any other person, the entry of the assignment to the name of a new owner shall be entered to the register.
3. The pledgor who fulfilled the secured obligation shall have the right to demand the annulment of the entry of pledge in the register. Upon the demand of the pledgor, the pledgeholder shall be obliged to present to the body which carries out the registration the necessary documents and written applications. In failure to fulfill or untimely fulfillment by the pledgeholder of those obligations the pledgor shall have the right to claim the compensation of losses inflicted to him through that.
Article 309. Assets to which the rights of the pledgeholder apply
1. The rights of the pledgeholder (the pledge rights) in respect of an item which is the item. in pledge shall apply to the right to own it unless otherwise is provided by the agreement or legislative acts.
The rights of pledge shall apply to the fruit received and the cost as a result of the use of the pledge asset in the cases which are provided by the agreement or legislative acts.
2. In the case under mortgage of enterprise or any other property complex as a whole the right to pledge shall apply to all its assets movable and immovable including the right to claim and exclusive rights among which those acquired during the period of mortgage unless otherwise provided in the law or the agreement.
3. The mortgage of a building or structure shall be permitted only with the simultaneous mortgage under the same agreement or the right the land plot on ,which that building is located or the structure or the part of that plot which is functionally secures the pledged item.
Article 310. The emergence of the right to pledge
1. Unless otherwise provided by the pledge agreement, the right to pledge shall arise with respect to the assets the pledge of which is subject to register from the moment of the registration of the agreement in respect to any other assets from the moment of a transfer of those assets to the pledgeholder and if it is not subject to transfer than from the moment of the conclusion of the pledge agreement.
2. The right in accordance with the rules of paragraph 2 of Article 327 of the present Code.
Article 311. Subsequent pledge (repledge)
1. If the property which was pledged is to become the subject of another pledge to secure other claims (repledge) the repayment of the subsequent pledgeholder shall be satisfied from the value of the pledged item after the claims of the previous pledgeholders.
2. Repledge is allowed unless it is prohibited by the previous agreement of pledge.
3. The pledgor shall be obliged to report with subsequent pledgeholder the information concerning the all the existing pledgors of that asset and he shall be responsible for the losses inflicted upon the pledgeholders by nonfulfillment of this duty.
Article 312. Contents and the safety of pledged property
1. The pledgor or pledgeholder in relation depending on which of them keeps the pledged property shall be obliged unless otherwise provided legislative acts or the agreement as follows:
1) to take measures required for ensuring in the safety of the pledged assets including among those for the protection of it from encroachments and claims by third parties;
2) immediately notify the other party of the emergence of a threat of loose or damage to the pledged property.
2. The pledgeholder and pledgor shall have the right to check through documents and the conditions of storage of pledged assets which are kept by the other party.
3. In case of a material breach by the pledgeholder of the obligations indicated in paragraph 1 of this article which carries the threat of damage to the pledged assets, the pledgor shall have the right to claim the premature termination of the pledge.
Article 313. Consequences of the loss or damage to pledged assets
1. The pledgor shall bear the risk of accidental destruction or damage to the pledged property unless otherwise provided in the pledge agreement.
2. The pledgeholder shall be responsible for complete or partial loss or damage to the pledged item transferred to him unless he proves that may be exempt from the responsibility in accordance with article 359 of the present Code.
3. The pledgeholder shall be responsible for the loss of in the amount of its actual cost and for the damage in the amount of money for-which the amount at which pledged item was evaluated when transferred to the pledgeholder.
4. Where as a result of the damage to the pledged item it was changed so much that may not be used in accordance with its designation the pledgor shall have the right to reject it and to claim the replacement and claim the compensation for its loss.
5. The agreements may provide the obligation of the pledgeholder to compensate to it pledgor and any other losses which are inflicted by the loss or damage to the pledged item.
6. The pledgor who is the debtor in the pledge shall have the right to include the claim towards the pledgeholder concerning the compensation of losses inflicted by loss or damage to the pledged item into repayment of the obligation which is secured with the pledge.
Article 314. Replacement and restitution of pledged item
1. The replacement of the item pledged shall be permitted with the consent of the pledgeholder unless legislative acts or the agreement provide otherwise.
2. Where the pledged item was destroyed or damaged or the right to own or to business authority in respect thereof seized on the grounds established by the legislative acts the pledgor shall have the right within the reasonable period to restore the pledged item or replace it with any other similar or equal identical asset.
Article 315. The use and disposal of pledged items
1. The pledgor shall have the right unless otherwise provided in the agreement and is not in sue from the essence of the pledge to use the pledged item in accordance with its designation including extraction of fruits and income out of it.
2. Unless otherwise provided in the legislative acts or agreements and does not result from the essence of the pledge, the pledgeholder shall have the right to alienate the pledged, item into ownership, business authority or operative management or to transfer it into lease or free use of any other person or in any other way dispose of it only with the consent of the pledgeholder.
An agreement which restricts the right of the pledgor to bequest pledged assets shall be invalid.
3. The pledgeholder shall have the right to use the pledged item transferred to him only in the case which provides the agreement regularly presenting to the pledgor the reports of the use. In accordance with the agreement the pledgeholder may be delegated with the obligation to extract from pledged item fruit and income for the purpose of repaying the principal obligation or in the interest of the pledgor.
Article 316. Protection by the pledgeholder of his rights in the pledged item
1. The pledgeholder who held or should have held pledged assets shall have the right to claim it from anybody else's illegal possession including from the pledgor himself.
2. In the event the agreement grants the pledgeholder the right to use the pledged item transferred to him, he may demand from any other persons including the pledgor to eliminate any and all violations of his right even though those violations are not related to the dispossession.
Article 317. The basis for the imposition of penalty of claims on pledged assets
1. Claims in respect of pledged assets for the satisfaction of the claims of the pledgeholder (creditor) may be ii-imposed in the cases of a failure to fulfill or improper fulfillment by the debtor of the obligation secured with the pledge for which he is liable.
2. The imposition of a claim of pledged assets may be refused if the violation committed by the debtor of the obligation which is secured with the pledge is extremely small and the amount of the claim of the pledgeholder as a result of that is clearly incommensurate with the value of the pledged assets.
Article 318. The procedure for the imposition of claims on the pledged item
1. Satisfaction of the claim of pledgor out of the value of pledged assets shall be carried out unless otherwise provided in the present Code or any other legislative acts or agreements in a judicial procedure.
2. In the cases provided in the pledge agreement and also the present Code and any other legislative acts the pledgor shall have the right to independently sell the pledged assets in a compulsory non-judicial procedure by way of conducting auction.
The same right shall belong to the bank pledgeholder in respect of selling the pledge item which secures under monetary law.
Article 319. Selling pledged assets
1. Selling (sales) of pledged assets upon which in accordance with article 20 of the present Code a claim is imposed shall be carried out by way of selling in public auctions in a procedure which is established by the procedure legislation unless the legislative acts provide any other procedure.
2. The special consideration in selling pledged assets in a compulsory non-judicial procedure shall be established by the present Code and law concerning mortgage or immovables. Rules and procedure which are established by the law concerning mortgage shall apply to selling assets when executing any other types of pledge unless the present Code provides otherwise.
3. Upon the request of pledgor the Court shall have the right in the resolution concerning the imposition of a claim on pledged assets to delay its sale in public auctions for a period up to a year. The delay shall not impact the rights and obligations of the parties in respect of the obligation which is secured the pledge of that asset and it shall not except the debtor from the repayment of loss which increase during the period of delay of the creditor and amongst of profit.
4. Any legal entities and citizens including pledgor and right to participate the auction.
Prior to the beginning of the auction the court or any entrusted nominated person (Article 320 of the present Code) shall have the right to require from each participant of the auction the payment of a guarantee contribution. The guarantee contributions should be subject to repayment upon the accomplishment of the auction. A guaranteed contribution by a participant who won the auction shall be included in the account of the final price. A guaranteed contribution of a participant who, won the auction, who did not pay the final price of the disposal of the Court or the nominated person.
5. When announcing auctions as not taking place or invalid the pledgeholder shall have the right either to turn the pledged assets to his own property at its current estimated value which is established by the decision of the court or nominated person on the bases of the conclusion of the state body for the appraisal assets or to require the organization of new auction.
6. If the amount which is received from selling pledged assets is insufficient to cover the claim of the pledgeholder he shall have the right in the absence of any other indication in the legislative acts or agreement to receive the amount of shortage from the other asset of the debtor without using the advantages pasted on the pledge.
Where the amounts received in selling pledged assets exceeds the amount of the claim secured with pledgeholder the difference shall be returned to the pledge.
7. The debtor and the pledgor with the third party (material warrantor) shall have the right at any time prior to when the sale took place of the pledged item terminate the imposition on him of the claim its sale have executed the obligation which is secured with the pledge or the part thereof the fulfillment thereof has been delayed. The agreement which restricts this right shall be invalid.
Article 320. Selling pledged assets in a compulsory nonjudicial procedure
1. When selling pledged assets in a compulsory non-judicial procedure, the auction shall be carried out by a fiduciary, which may be legal entity or a citizen, and which has the power of attorney from the pledgeholder to sell the pledged assets in the case of the breach of an obligation secured with the pledge.
2. The entrusted person shall execute by the following procedure:
1) to compile notification to the pledgor of the default on the obligations and register this item at the body where the pledge agreement was registered;
2) where the requirements were not satisfied which were from the notification but not earlier than in two months from the moment of its dispatch to pledgor, he shall compile the notification of auction to sell the pledged assets, register it with the body where the pledge agreement was registered, and deliver it to the pledgor;
3) officially publish an announcement of the auction in the local press.
Article 321. Premature fulfillment of an obligation which is secured with the pledge and imposition of the claim of the pledged property
1. The pledgeholder shall have the right to demand premature fulfillment of the obligation secured with the pledge in the event:
1) he discontinues to possess the subject of the pledge not under the conditions of the pledge agreement;
2) breaking by the pledgor of the rules concerning the replacement of the pledged asset (article 3 14 of the present Code);
3) the loss of the pledged asset on the circumstances for which the pledgeholder is not responsible (paragraph 2 of article 313 of the present Code) unless the pledgor did not exercise the rights provided by paragraph 2 of Article 314 of the present Code.
2. The pledgeholder shall have the right to demand a preliminary fulfillment of the obligation secured by the pledge and where his demand is not satisfied to impose a claim upon the pledged item in the event of:
1) breaking by the pledgor of the rules concerning subsequent pledge,
2) nonfulfillment by the pledgor of the obligations provided in subparagraphs 1 and 2 of Article 312 of the present Code;
3) breaking by the pledgor of the rules concerning the disposal of pledged assets (paragraph 2 of Article 315 of the present Code).
Article 322. Termination of pledge
1. Pledge shall terminate:
1) upon termination of the secured obligation;
2) upon the claim-n of the pledgor where grounds exist which are provided in paragraph 3 article 3 12 of the present Code;
3) in the event of loss of the pledged assets or termination of the pledged right if the pledgor does not exercise the right provided in Article 314.2 herein;
4) in the event of the sale from public auction of the pledged assets and also in the case where its sale became impossible (article 3 19).
2. An entry must be made in the register concerning the stopping of the pledge in the register where the pledge agreement was registered.
3. When terminating a pledge as a result of the fulfillment of the obligation which is secured with the pledge or by demand of. the pledge (paragraph 3 article 312) the pledgeholder who holds pledged assets shall be obliged to immediately return it to the pledgor.
Article 323. Preservation of pledge in the transfer of the right to pledged assets to any other person in the order of legal succession
1. In the case of a transfer of the right to own pledged assets or the right to business management with respect to them from the pledgor to any other person as result of charged or free of charge alienation of those assets or in the procedure of the universal legal successorship, the right of pledge shall retain its effect.
The legal successor of the pledgor shall become the pledgor and he shall carry all the obligations of the pledgor unless the agreement with the pledgeholder provides otherwise.
2. Where the assets of the pledgor which are the pledged items are transferred in a procedure of legal successorship to several persons, then each of the legal successors (acquirers of the assets) shall bear the non-fulfilled secured obligation in proportion with the piece of the property transferred to him. However where the pledged item is indivisible or for any other reasons remains in a joined common ownership of the legal successors they shall became solidary pledgors.
