Law No. 979 “On mortgage”.

This Law defines the main provisions on mortgage. Property connected with land and classified by the legislation as immovable property can be object of mortgage in accordance with mortgage agreement. When edifices, buildings and structures are mortgaged, the right of usage of land plot, on which above‑said object are located, becomes the subject of mortgage simultaneously. In such cases the right of usage of land plot is transferred simultaneously to an acquirer (buyer) of edifice, building or structure when compensation from the subject of mortgage is claimed. Mortgaging rights for land plot as well as of right for other natural resources is permitted within and on conditions specified by the legislation. If the state body of mortgager and management decides to cease the right of property over mortgaged property or to cease the mortgaged rights which are not related to the direct confiscation of the mortgaged property or mortgaged rights including decision to confiscate the land plot where mortgaged house, other structures, edifices or plantations are located, the losses caused by this decision to the mortgagee should be compensated to the mortgagee in the full volume by this state body at the expense of means which are at his disposal. Disputes about compensation of losses are settled by court or arbitrary court.

Repealed by: Law No. 364 “On mortgage”. (2008-03-20)