Concerning the mortgage of immovable property Edict of the President of the Republic of Kazakhstan, having authority of law, of December 23, 1995 № 2723

Concerning the mortgage of immovable property
Edict of the President of the Republic of Kazakhstan,
having authority of law, of December 23, 1995 № 2723

In accordance with Article 1 of the Law of the Republic of Kazakhstan, dated December 10, 1993 Concerning the Temporary Delegation of Additional Powers to the President of the Republic of Kazakhstan and the Heads of Local Administrations, I issue this Edict:

CHAPTER 1. GENERAL PROVISIONS

Article 1. The Fundamental Terms and Definitions

The terms and definitions employed in this Edict shall have the following meanings:

1) trustee means an entity which carries out registration of mortgages in a non-judicial procedure;

2) pledger means the entity whose immovable property or the share therein are subject to mortgage;

3) pledge holder means an entity whose interests relating to the principal are secured with a mortgage;

4) mortgage of immovable property (hypotheca) means a type of pledge under which the pledged property of share therein remain in the possession and use of the pledger or a third party;

5) mortgage agreement means an agreement of parties to establish the principal obligation;

6) immovable property (immovables) means land plots and also buildings, installations and any other assets firmly attached to land, that is the items the translocation whereof is impossible without unreasonable damage to their assignment;

7) the principal obligation means a debt or any other liability which is fully or partially secured with mortgage;

8) realisation of mortgage means selling of the property which is mortgaged.

Article 2. The Sphere of Application of This Edict

1. This Edict shall regulate relations which emerge in applying the mortgage of property as a means of securing obligations. The general rules concerning pledge, which are contained in the Civil Code of the Republic of Kazakhstan shall apply to mortgage of property, unless this Edict sets forth different rules. In the case of contradiction between this Edict and other legislative acts in respect of regulating mortgage of property, the provisions of this Edict shall apply.

2. The rules of this Edict on mortgage arising by virtue of an agreement, shall apply to mortgage arising on the basis of a legislative act.

3. Special considerations in mortgaging of land plots and rights relating thereto may be stipulated in land legislation.

Article 3. The Limits of Securing of the Principal Obligation with Mortgage

1. Mortgage shall secure payment to the pledge holder of the principal amount of debt under a credit agreement or any other obligation, in full or to the extent stipulated in the mortgage agreement.

Unless it is otherwise stipulated in the agreement, a mortgage established to secure a credit agreement, shall also secure the payment of interest to the creditor, which is due the creditor for use of the loan.