A pledge agreement is an agreement under which one party (the pledgee) has the right to reimburse its losses at the expense of the property (subject of pledge) of the other party (the pledger), in the event the debtor fails to fulfill its obligations.
Instructions
Step 1
A pledge, along with a forfeit, a bank guarantee and a deposit, is a means of securing the fulfillment of obligations. The pledge arises by virtue of the contract and is inextricably linked to the main obligation. The invalidity of the main agreement entails the invalidity of the pledge agreement. A distinctive feature of this agreement is that both the debtor himself and any other person can act as the pledger. Any property (with the exception of things seized or restricted in circulation), property rights can be the subject of a pledge. The main thing is that the mortgaged property could fully cover possible losses in case of non-fulfillment of the main contract (both basic losses and forfeit). Claims that are inextricably linked with the personality of the pledger, in particular, claims for compensation for harm to health, alimony, etc., cannot be the subject of a pledge.
Step 2
After the conclusion of the pledge agreement, the pledged property can be transferred to the pledgee or remain in the possession of the pledger. The pledgor can use the pledged property throughout the entire term of the contract. It is even possible to sell the mortgaged property to a third party if it is provided for by the contract.
Step 3
The pledge agreement is concluded in writing. The mortgage of immovable property is subject to notarization. Its text must necessarily indicate the subject of the pledge, its market value, as well as references to the obligation that is secured by the pledge (its essence, size and term of performance). It is also necessary to make an indication of which of the parties to the contract will have the mortgaged property.
Step 4
The renewal (renewal) of the pledge agreement is possible when the subject of the pledge changes, the term of the original agreement expires (provided that it was concluded for a certain period), if one of its parties is replaced (for example, the pledger, if he and the debtor do not coincide in one person). The subsequent pledge agreement must be in the form in which the first agreement was concluded. The fundamental conditions of the original agreement should be left unchanged, but the parties have the right to make adjustments related to changes that have occurred in the time and environment of its conclusion. Only after agreeing on the above issues is it possible to reissue the pledge agreement.
