PLEDGE REGISTRY OF THE REPUBLIC OF UZBEKISTAN

What are the benefits of the pledge registry for the lender?

According to Article 5 of the law of the Republic of Uzbekistan "On pledge registry", which defines the rights of the creditor to foreclose on the pledged property, it is possible to identify the advantages of the pledge registry.

That is, according to Article 9 of this law, unless otherwise provided by the law, the time and date of entry into the pledge registry are the basis for determining the priority, the preferential right of the creditor before other creditors and third parties to foreclose on the property of the debtor, the satisfaction of other requirements in cases of default by the debtor of its obligations.

In addition, the creditor has the opportunity to get an answer from the base of the pledge registry to the question whether the property (asset, rights) that is taken as pledge is used.

At the same time, it will have a positive impact on the credit portfolio of banks in terms of risk reduction and will contribute to the further intensification of loans secured by movable property.

Also, the pledge registry will provide the protection of creditors and purchasers of assets from unscrupulous borrowers who had to come up with ways of sale of the property held as pledge.