Article 264. Protection of the Right of the Owner From the
Violations Which are not Related to the Deprivation of Ownership
An owner may claim the removal of any violation of his right, even though those violations are not related to deprivation of ownership.
Article 265. Protection of Material Rights of the Person Who is
not an Owner
The rights which are stipulated in Article 259 - 264 of this Code shall also belong to a person who, although he is not the owner, holds the property under the right to business authority, operational management, permanent land use or on another basis which is stipulated in the legislative acts or the agreement. That person shall have the right to protect his possessions from the owner, as well.
Article 266. Protection of the Interests of the Owner When His
Rights Are Terminated for Reasons Stipulated in the Law
In the case of adoption by the Republic of Kazakhstan of legislative acts which terminate the right to own, the losses inflicted upon the owner as a result of the adoption of those acts shall be reimbursed to the owner in full volume by the Republic of Kazakhstan.
Article 267. Invalidity of the Acts of the Bodies of Power,
Administration and of the Officials, Which Violate
the Rights of an Owner and Other Corporeal Rights
1. Where as a result of issuing a regulatory or individual act which does not comply with legislation, by a body of the state administration, a local representative or executive body, or by an official person, the rights of an owner and of any other persons are violated in relation to ownership, use and disposal of the property which belongs to them, such an act shall be recognised as invalid in a judicial procedure through the action of the owner or a person whose rights are violated.
2. When a court passes its decision on a specific case, the acts of the bodies of state administration, and of a local representative or executive body, which contradict the legislative acts shall not be applicable.
Any losses which are inflicted upon an owner as a the result of the issue of said acts shall be subject to reimbursement in full volume by the relevant body of authority or administration from the resources of the relevant budget.
SECTION III. LAW OF OBLIGATIONS
SUBSECTION I. GENERAL PROVISIONS CONCERNING OBLIGATIONS
Chapter 16. The Definition and the Bases for the Emergence of
Obligations
Article 268. The Definition of Obligations
If due to an obligation one person (the debtor) shall be obliged to commit for the benefit another person (the creditor) certain actions, e.g. to transfer property, perform work, pay money etc., or abstain from certain actions, then the creditor shall have the right to claim from the debtor the execution of his obligation. The creditor shall be obliged to accept the execution from the debtor.
Article 269. Parties to an Obligation
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
2. Several persons may participate simultaneously in an obligation as either of the parties, the creditor or the debtor. In those cases, a shared, joint or subsidiary obligation shall arise in accordance with the rules established by this Code (Article 286 - 288).
The invalidity of the claims of a creditor toward one of the persons who participate in an obligation on the side of the debtor by itself shall not affect the creditor's claims toward other such persons, and this is also applicable as to the expiration of the term of the statute of limitations of the claim toward such a person.
3. If due to an obligation either of the parties has an obligation for the benefit of the counter party, either first party shall be deemed to be a debtor of the counter party with regard to what it is obliged to do to benefit the other, and simultaneously its creditor in what it has the right to claim from the other.
Article 270. Participants of an Obligation
1. Participants in an obligation shall be the parties (debtor and creditor) and third persons.
2. The persons who are bound by obligations or other legal relations with one of the parties of an obligation shall act as third parties.
3. An obligation shall not create duties for third parties. In the cases stipulated by the legislation or agreement of the parties, an obligation may give rise to the rights of third parties in respect of one or both parties to the obligation.
Article 271. The Bases for the Emergence of Obligations
Obligations shall emerge from an agreement, infliction of damage or on any other bases which are stipulated in Article 7 of this Code.
Chapter 17. Execution of Obligations
Article 272. Proper Execution of Obligations
Obligations must be fulfilled in a proper manner, in accordance with the conditions of the obligation and requirements of legislation, and if such conditions and requirements do not exist, then in accordance with the traditions of business practice or any other requirements which are usually applicable.
Article 273. Prohibition of a Unilateral Refusal to Execute an
Obligation
A unilateral refusal to execute an obligation and a unilateral alteration of its conditions shall not be allowed, except for the cases stipulated by the legislation or agreement.
Article 274. Execution of an Obligation by Part
A creditor shall have the right not to accept the execution of an obligation by part, unless it is otherwise provided for by the conditions of the obligation, the legislation, or ensues from the traditions of business practice or the essence of the obligation.
Article 275. The Execution of an Obligation to the Proper Person
Unless it is otherwise provided for by an agreement of the parties or ensues from the tradition of business practice, or the essence of the obligation, when an obligation is executed the debtor shall have the right to claim proof that the execution is accepted by the creditor himself or by a person authorised by the creditor, and the debtor shall bear the risk of the consequences of failure to present such a claim.
Article 276. The Execution of Obligations By a Third Party
1. The execution of an obligation may be delegated, entirely or in part, to a third party, provided it is stipulated in legislation or the agreement, and also when the third party is related to one of the parties through an appropriate agreement.
2. When the obligation of a debtor to execute an obligation personally does not ensue from legislation, conditions of the obligation or from its essence, the creditor shall be obliged to accept the execution offered for the debtor by a third party.
3. The third party that bears the risk to lose its right to the property of a debtor (the right to use, own, mortgage etc.), as a result of the imposition by the creditor of a claim upon that property, may at its expense satisfy the claim of the creditor without the consent of the debtor. In that case the rights of the creditor in the obligation shall be transferred to the third party, and the rules of this Code concerning the assignment of a claim (Article 339 - 347 of this Code) shall apply.
Article 277. The Term for the Execution of an Obligation
1. When an obligation stipulates or permits the identification of the date of its execution or a period of time during which it must be executed, the obligation shall be subject to execution on that date or appropriately at any moment within that period.
2. In the cases where an obligation does not stipulate the date for its execution and does not contain any conditions which allow the identification of that date, it must be executed within a reasonable period after the emergence of the obligation.
An obligation which is not executed within a reasonable term, and equally an obligation the term for the execution of which is identified as the moment of the claim, must be executed by the debtor within seven days from the date of the presentation by the creditor of the claim for its execution, unless the duty to execute by any other date ensues from legislation, the conditions of the obligation, traditions of business practice or the essence of the obligation.
Article 278. The Requirement of a Regular Execution of an
Obligation
The obligations which are intended to be for a long term of execution must be executed regularly within reasonable periods for such types of obligations (a day, ten days, a month, a quarter, etc.), unless it is otherwise stipulated in the legislation, or the conditions of the obligation, or ensues from the essence of the obligation, or traditions of business practice.
Article 279. Premature Execution of an Obligation
1. A debtor shall have the right to execute obligations prior to the deadline, unless it is otherwise stipulated in legislation or conditions of the obligation or ensues from its essence.
2. A premature execution of obligations related to entrepreneurial activities shall be allowed only in cases where the possibility of fulfilling the obligation prior to the deadline is stipulated in legislation, or the conditions of the obligation, or ensues from the tradition of business practice or the essence of the obligation.
Article 280. Information Concerning the Course of Execution of an
Obligation
The legislation or conditions of an obligation may stipulate a duty of the debtor to report to the creditor upon the course of execution of the obligation.
Article 281. The Place of the Execution of an Obligation
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
If the place of the execution is not determined by legislation or the conditions of the obligation, and it does not clearly ensue from the essence of the obligation or traditions of business practice, the execution must be carried out as follows:
1) an obligation to transfer immovable property, - in the place where the property is situated;
2) an obligation to transfer goods or other property with the use of transport,- in the place of transfer of the goods to the first carrier for delivery to the creditor;
3) other obligations of an entrepreneur to transfer goods or other assets,- in the place of the manufacture or storage of the property, provided that place is known to the creditor at the moment of the emergence of the obligation;
4) a monetary obligation - in the place of residence of the creditor at the moment of the emergence of the obligation, and if the creditor is a legal entity, - in the place where it is situated at the moment of the emergence of the obligation; if the creditor by the time of the execution of the obligation changed his place of residence or the place of its location and notified the debtor of it, - at the new place of residence or location of the creditor, with the charging of all the costs associated with the change of the place of the execution to his account;
5) with regard to any other obligations, - in the place of residence of the debtor, and if the debtor is a legal entity at the place of its location.
Article 282. Monetary Obligations
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and
(18) Law No. 436 of 16th July 1999 of the Republic of Kazakhstan "Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan"
1. Monetary obligations in the territory of the Republic of Kazakhstan must be expressed in the Tenge (Article 127 of this Code).
The use of foreign currency, and also of payment documents in foreign currency when making payments on obligations in the territory of the Republic of Kazakhstan, shall be allowed in the cases and on the conditions defined by legislative acts of the Republic of Kazakhstan or in accordance with the procedure established by them. A monetary obligation may stipulate that it is subject to payment in the Tenge in the amount which is equivalent to a certain amount in foreign currency. In this case the amount to be paid in the Tenge shall be determined on the basis of the official exchange rate of the National Bank as established for the relevant foreign currency at the day of payment or on the basis of any other exchange rate as established by the agreement of the parties.
The procedure and methods for effecting payments and settlements shall be established by banking legislation of the Republic of Kazakhstan and they shall be defined by the parties in relevant agreements.
2. An amount of the performed payment, which is insufficient for the execution of a monetary obligation, unless it is otherwise agreed by the parties, shall first of all repay the costs of the creditor in respect of the receipt of the execution, and then the damage and remuneration (interest), and the outstanding part shall be applied to the principal amount of debt.
3. In long term obligations, the indexation of payments on the conditions specified by the parties may be indicated.
Article 283. The Increase of the Amounts Which are Payable for the
Maintenance of a Citizen
With an official increase of the minimum wage, the amounts which are payable on a monetary obligation directly for the maintenance of a citizen (compensation for harm caused to life or health, in accordance with the agreement of life-long support, etc.), shall be increased proportionally.
Article 284. Execution of Mutual Obligations
1. Mutual obligations must be executed by the parties simultaneously, unless it otherwise ensues from the legislation, traditions of business practice, conditions of the obligation, or its essence.
2. Non-execution or improper execution of an obligation by one of the parties shall release the other party, when mutual obligations are executed and counter claims are satisfied, from the execution of its duties, unless legislative acts or the conditions of the obligation stipulate otherwise.
Article 285. Execution of an Alternative Obligation
A debtor who is obliged to commit one of two or of several actions shall have the right to select among them, unless it otherwise ensues from legislation or conditions of the obligation.
Article 286. Execution of an Obligation in Which Several Creditors
or Several Debtors Participate
When several creditors or several debtors participate in an obligation (obligation with a number of persons), then either of the creditors shall have the right to claim the execution of the obligation, and each of the debtors shall be obliged to execute the obligation in a share equal to others, unless it otherwise ensues from legislation or the conditions of the obligation (shared obligation).
Article 287. The Execution of a Joint Obligation
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. An obligation with a number of persons, by virtue of which each creditor has the right to claim, and each debtor is obliged to execute the obligation in full, shall be recognised as a joint obligation.
A joint obligation or a joint claim shall arise if it is provided for in the agreement or established by legislative acts, in particular, where the subject of the obligation is indivisible.
2. The duties of several debtors in respect to an obligation associated with entrepreneurial activity, as well as the claims of several creditors in such an obligation shall be recognised as joint ones, unless legislation or conditions of the obligation stipulate otherwise.
3. In the case of joint obligation of debtors, the creditor shall have the right to claim the execution both from all the debtors and from any one of them separately, and in this respect for full repayment and for part of the debt. The creditor who have not received complete satisfaction from one of the joint debtors shall have the right to claim the amount in arrears from the other joint debtors.
The joint debtors shall remain obliged until the obligation is executed in full. The execution of a joint obligation in full by one of the debtors shall release the other debtors from their execution to the creditor.
4. When claims are joint, any of the joint creditors shall have the right to present to the debtor the claim in full volume.
The execution of an obligation in full to one of the joint creditors shall release the debtor from execution to the other creditors.
5. In the case of a joint 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 joint claims, the debtor shall not have the right to make objections against the claims of one of the joint creditors, which are based on such relations of the debtor with another joint creditor, in which that creditor does not participate.
Article 288. The Execution of a Subsidiary Obligation
The legislative acts or conditions of an obligation between the creditor and the debtor may specify that, in the case of a failure by the principal debtor to satisfy the claim of the creditor to execute the obligation, that claim may be made to the other debtor (a subsidiary debtor) such part of it as is not executed.
Article 289. Regress Claims
1. A debtor who executed an obligation of another person shall have the right of return claim (regress) to that person in the amount of the obligation executed.
A debtor who failed to execute an obligation as a consequence of actions of a third party, shall have the right to claim compensation for the losses from that party.
2. A debtor who executed a joint obligation shall have the right to a return claim against 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 executed a joint obligation shall equally fall on that debtor and on the other co-debtors.
The rules of this paragraph shall apply appropriately when a joint obligation is terminated by offset of a counter claims of one of the debtors.
3. A joint creditor who received execution from a debtor shall be obliged to recompense the other creditors for the shares which are due to them, unless it otherwise ensues from relations between them.
Article 290. Certification of the Execution of Obligations
1. Upon the claim of a debtor, a creditor, when accepting a 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 Depositing the Debt
amended by (11) Law of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
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 authorised 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
§ 1. General Provisions
Article 292. Methods of Securing the Execution of Obligations
1. The execution of an obligation may be secured with damages, pledge, lien of the debtor's property, suretyship, guarantee, advance payments, and other methods provided for by legislation or the agreement.
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.
§ 2. Damages
Article 293. The Definition of Damages
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
Damages (fine, penalty) shall be recognised 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 Damages
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 Damages
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 Damages
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 are worth attention.
Article 298. The Bases for Levying Damages
Damages shall be levied for failure to execute or for improper execution of an obligation, when the conditions exist for holding of the debtor responsible for violation of the obligation (Article 359 of this Code).
§ 3. Pledge
Article 299. Definition of Pledge
as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
1. Pledge shall be recognised 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.
Article 300. The Bases for the Emergence of Pledge
1. Pledge shall arise by virtue of an agreement. Pledge shall arise also on the basis of legislative when the events indicated therein take place, provided the legislative acts specify what property is recognised 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. Pledgeable Items
amended by (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and
(12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".
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 pledged.
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 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. Funds which are subject to pledge shall be placed in a bank.
5. Pledge of securities of joint stock companies (including banks), and of any other entities, shall be carried out subject to legislation concerning securities.
Article 302. Claims Which Are Secured by Pledge
amended by (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
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. Types of Pledge
amended by (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.
1. Mortgage is a type 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, cosmic items, 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 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 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 items may be left with the pledger under lock and seal of the pledge holder. The pledged item 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.
4. In pledging a property right certified with a security, the security shall be transferred to the pledge holder or office placed in a bank, unless the agreement stipulates otherwise.
5. Unless it is otherwise stipulated in the pledge agreement, money which are the pledged item shall be placed in a bank.
Remuneration (interest) owing on those funds shall belong to the pledger.
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 pledgeable item.
Article 305. A Pledger
1. Both the debtor and a third party may be pledgers.
2. The owner of an item, or with the consent of the owner, any other person who has in respect to that item 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 item shall not be allowed without consent of its owner, or of the person who has, in respect to that item the right of business authority, when legislative acts or an agreement prohibit the alienation of that right without consent of said persons.
Article 306. Insuring Pledged Assets
as amended by (22) Law No. 128 of 18th December 2000 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Insurance and Insurance Activities.
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 Agreement
1. A pledge agreement must indicate the pledged item 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.
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.
2. The body which carries out the registration shall be obliged to maintain the register of pledges and to adopt measures to protect the interests of pledge holders and to prevent alienation of pledged assets without consent of the pledge holder.
When the nature and contents of a debt claim secured with the pledge are changed, an additional registration shall be carried out.
