Amendments to the Law “On Pledge”

The deputy corps adopted amendments to the Law of the Pridnestrovian Moldavian Republic “On Pledge” in the second reading at the last plenary meeting. The author of the legislative initiative was the President of the Pridnestrovian Moldavian Republic.

The authority responsible for registering pledges is obliged to provide a certificate of registration of pledge and an extract from the register upon request of pledgors or pledgees within one week, according to the current provisions of the law. Difficulties arise in understanding the norm of the law in practice: it is necessary to issue both a certificate of registration of a pledge and an extract from the register, or it is mandatory to issue a certificate of registration of a pledge, and an extract from the register – only upon request.

The certificate of registration of a pledge and an extract from the register contain the same information according to the current Rules for registering a pledge of vehicles at the same time: information about the pledgor and the pledgee, their details, including addresses, telephone numbers, the date of conclusion of the pledge agreement, a description of the vehicle, the date registration of pledge, etc. A certificate of registration of a pledge, in particular vehicles, is a document confirming the registration of a pledge, and an extract from the register is a document that contains not only initial information about this property, but also all information about all pledge notifications regarding this object.

Adopted today in the second reading the law-in-draft determines that the information contained in state registers about the registration of a pledge, including in relation to vehicles, should be provided within a week, but in the form of an extract from the state register. This requires an application from the pledgor or pledgee, or their authorized representatives.

Such extracts from the state register are needed to check whether property, for example, a car, is mortgaged. If the register contains data that the property being purchased is mortgaged, this means that the purchaser has been notified of this.

Changes to the Law “On Pledge” will facilitate the transition to electronic document flow when registering a pledge and reduce the use of paper documentation. The possibility of receiving an extract from the register by the pledgee and (or) pledgor in paper form remains at the same time.

The adopted changes will come into force after signing by the President of the Pridnestrovian Moldavian Republic and promulgation.