This is an update of our alert dated 5 December 2012. Since our
prior alert, there have been certain legislation changes addressed
The public unified register of pledges of movable property (the
Register) was initially introduced by Federal Law
No. 166-FZ, dated October 2, 2012 (for detailed information, please
see our alert on
Registration of Pledges of Movable Property). Later amendments
to various legal acts, including the Russian Civil Code (the
Law), introduced further regulation on the filing
of such pledges with the Register.
The Register will contain publicly available information on the
pledgees in addition to publicly available information on
the pledgors and the pledged movable property (as was initially
Registration of the agreements on pledge of movable property
with the Register is not mandatory. However, according to the Law,
registration with the Register protects the security interest and
has the following legal consequences:
The priority of the pledges of movable property
createdprior to 1 July 2014 and
registered with the Register during the period from 1 July 2014 to
1 February 2015 will be established by the date of the
relevant pledge agreement. Starting from 2 February 2015,
priority of such pledges will be identified by the date of their
registration with the Register;
The priority of the pledges of movable property created
starting from 1 July 2014 will be established by
the date of registration of such pledges with the
Protection of the pledge from the bona fide
acquirer1. An acquisition by the bona fide acquirer of
the pledged movable property is new ground for the termination of
the pledge agreement. Accordingly, if the pledge is not registered,
there is a risk of termination of such pledge agreement in the
event of an acquisition of the pledged movable property by the bona
fide acquirer. In order to avoid the above risk, it is recommended
that Notifications of any agreements on pledge of movable property
in force be registered as soon as possible.
1 A person who acquires pledged property and who did not
know and could not have known of the existence of such pledge
(either from the Register or from any other source).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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