Law of the Republic of Tajikistan

on Mortgage

Important Disclaimer

This does not constitute an official translation and the translator cannot be held responsible for

any inaccuracy or omission in the translation. The text should be used for information

purposes only and appropriate legal advice should be sought as and when appropriate.Chapter 1 - General Provisions

Article 1 - Basic definitions

The following basic definitions are used in the present law:

mortgage– a pledge of immovable property that has been registered with the state according

to the procedure established by law;

pledge– a type of obligation executed through collateral in which the creditor of the obligation

secured by a mortgage (mortgagee) has a right, in case the debtor, to whom this property

belongs (mortgagor), fails to fulfill the obligation, to receive satisfaction from the value of the

mortgaged immovable property of the other party as a priority against another creditor, except

in cases established by law;

mortgagor– a person, possessing ownership of or other property right to collateral;

mortgagee– a person, whose claims on the main obligation are secured by a mortgage.

Article 2 - Creation of a mortgage

1. Through the mortgage agreement, a mortgagee, being the creditor of the obligation

provided by the mortgage, has a right to satisfy his monetary claims from the debtor of

this obligation, from the value of the mortgaged immovable property of the other party

mortgagor as priority against another creditor, except cases established by law.

A mortgagor can be the debtor himself (herself) for the obligation provided by

mortgage, or a person not participating in this obligation.

The property used for the mortgage remains in the mortgagor’s possession and use.

The mortgage as an encumbrance on the property becomes effective upon state

registration of the agreement as established by law.

2. For a mortgage of immovable property arising on the basis of law in certain

circumstances (hereinafter, a legal mortgage), the rules of mortgage arising on the

strength of the agreement mortgage are accordingly used, unless otherwise stipulated

by law.

3. The general rules of mortgage in the Civil Code of the Republic Tajikistan shall be

applicable to relations in the mortgage agreement when the Civil Code or the present

law does not establish otherwise.

Article 3 - Mortgage legislation of the Republic of Tajikistan

Legislation of the Republic of Tajikistan regarding mortgage is based on the Constitution of

the Republic of Tajikistan and shall consist of the Civil Code of the Republic of Tajikistan, the

present law and the other laws and normative legislative acts of the Republic of Tajikistan, as

well as international legislative acts recognized by Tajikistan.

- 2 -Article 4 - Obligation secured by mortgage

A mortgage can be created by a credit agreement, a loan agreement or other obligation,

including obligations based on purchase and sale, lease, contract, and other agreements or

causing damage, unless otherwise provided for by law.

Article 5 - Claims secured by mortgage

1. A mortgage shall secure payment to the mortgagee of the main amount of the debt in

the credit agreement or other obligations fully or partially provided by mortgage, as

stipulated in the mortgage agreement.

2. A mortgage created to ensure the performance of the credit agreement or loan

agreement with interest payment shall also provide interest payment to the creditor

(lender) for use of the credit (borrowed funds).

3. Unless otherwise provided for in the agreement, the mortgage shall also provide

payment to the mortgagee for such amounts owed to him:

a) payment of damages (fines, penalty fees, forfeitures) as a consequence of non

fulfillment, delay of the fulfillment or other improper fulfillment secured by the

mortgage;

b) as interest for illegal use of cash assets which belong to others, stipulated by the

obligation secured by mortgage or law;

c) for recovering court and other expenses caused by foreclosure of the mortgaged

property;

d) for recovering expenses for the sale of the mortgaged property.

4. Unless otherwise provided for in the agreement, the mortgage shall provide the

mortgagee’s claims for the amount, at the moment of satisfaction, against the account

of mortgaged property.

5. If the mortgage agreement specifies the total amount of the mortgagee’s claim secured

by mortgage, the obligation of the debtor to the mortgagee for the part exceeding this

amount shall not be considered as secured by the mortgage.

Article 6 - Extra charges of the mortgagee secured by mortgage

When the mortgagee, in accordance with the terms of the mortgage agreement or as necessary

to ensure the preservation of the property mortgaged by this agreement, has to incur

maintenance expenses or security or debt offsets connected with property tax, charges or

municipal payments, recovery of these required expenses for the mortgagee shall be provided

at the expense of the mortgaged property.

Article 7 - Subject of a mortgage

1. The subject of a mortgage can be the right of ownership or other real rights to any

movable or immovable property:

- 3 -a) buildings, installations and other immovable property used in business activity;

b) dwellings, flats in block of flats and/or part of dwellings and flats, consisting of one

or several isolated rooms;

c) dachas, garden houses, garages and other constructions of consumer purpose;

d) other property referred to immovable property by the legislation of the Republic of

Tajikistan, except for cases established by law.

A right with a defined period of validity can be the subject of a mortgage only for the

duration of its validity.

2. The rules of the present law shall be applied to the mortgage of unfinished construction

of immovable property, including buildings and structures.

3. Mortgage rules of immovable property shall also apply to land use rights, unless

otherwise established in legislation.

4. Unless otherwise provided for in the agreement, the main object being collateralized

(the subject of the mortgage), shall be considered to be mortgaged together with its

parts, as a single whole.

5. Any part of a property whose division is naturally impossible without changing its

purpose (an indivisible unit), cannot be independently subject to mortgage.

6. A mortgage shall not be allowed for property excluded from circulation, that cannot be

foreclosed according to the law or a property prohibited from being privatized.

7. If the subject of the mortgage is a property requiring consent or permission of another

person or body to be alienated, then the same consent shall be necessary for the

mortgage of this property.

8. The mortgage of an immovable property cannot be the basis to discharge the fulfillment

of terms by the mortgagor in the mortgage agreement if, according to these terms, he

participated in the process of privatization of the property which is the subject of this

mortgage.

9. The mortgage shall cover all indivisible improvements of the subject of mortgage,

unless otherwise provided for in the agreement or the present law.

Article 8 - Mortgage of property in common ownership

1. A mortgage can be established for property that is in common joint ownership (without

determination of the share of each owner’s property rights) with the consent of all

owners. The consent must be given in writing, unless otherwise established by law.

2. A participant in a total share property has the right to mortgage his share of the

common property without consent of other owners.

In the case of foreclosure by the mortgagee for this share and in the case of its sale,

rules of Articles 298 and 303 of the Civil Code of the Republic Tajikistan regarding the

preemptive right of purchase belonging to the rest of the owners and the foreclosure of

the share of rights in common property, except for foreclosure of the share of property

rights to the common property of a dwelling or in connection with the foreclosure of a

flat in this house, shall be applied.

Article 9 - Subjects of the mortgage relations

- 4 -1. Individuals, legal entities and the state may be participants in mortgage relations.

2. Commercial banks and specialized credit institutions shall be implement operations

connected with mortgage, taking into account requirements established by the National

Bank of Tajikistan.

Chapter 2 - Conclusion of Mortgage Agreements

Article 10 - General rules for the conclusion of a mortgage agreement

1. A mortgage agreement shall be concluded in observance of the general rules of the

Civil Code of the Republic Tajikistan regarding conclusion of agreements, as well as

the conditions contained in the present law.

2. Non-observance of the rules regarding the form of the mortgage agreement shall render

it invalid. This agreement shall be considered null and void.

3. Upon entering into the terms of the mortgage in a credit or other agreement containing

obligations secured by a mortgage, the requirements for this agreement shall be

established by the present law and other normative-legal acts of the Republic Tajikistan

must be followed.

Article 11 - Contents of the mortgage agreement

1. The parties of the agreement, the subject of the mortgage, its cost, essence, amount and

deadline for the performance of the obligation must be specified in the mortgage

agreement.

2. The subject of the mortgage shall be defined in the agreement by indication of its name,

location and details sufficient for identification of this subject.

The basis of the rights to the property that is the subject of the mortgage should be

defined in the mortgage agreement.

If the subject of the mortgage is a right of lease, the rented property must be defined in

the mortgage agreement in the same way as if the property were the subject of the

mortgage and the term of the lease must be specified therein.

3. The value of the subject of a mortgage shall be defined by independent professional

appraisers and shall be indicated in the mortgage agreement on a cash basis in

observance of the requirements for a mortgage contained in Article 46 of the present

law for land use rights to a land plot for an agricultural purpose and in accordance with

legislation of the Republic of Tajikistan.

4. Collateral secured by a mortgage should be named in the mortgage agreement with an

indication of its amount, the basis of the origin and term of the performance. In case

when this obligation is based on any other agreement, the parties of this agreement,

date and place of its conclusion should be indicated. If the amount of the obligation

provided by a mortgage is to be determined in the future, the order and other necessary

terms for determination should be indicated in the mortgage agreement.

5. If an obligation secured by a mortgage is to be performed in parts, the period of

appropriate payments and their amounts or terms allowing a definition of these

amounts should be indicated in the mortgage agreement.

6. If the right of the mortgagee is certified by a Mortgage Certificate, this shall be

indicated in the mortgage agreement.

- 5 -7. An agreement cannot be considered to be a mortgage agreement if the data specified in

the present article are missing.

Article 12 - Notification of mortgagee about rights of third parties to the collateral

(subject of the mortgage)

Upon the conclusion of a mortgage agreement, the mortgagor shall be responsible for written

notification to the mortgagees about existing rights of third parties subject to the mortgage (the

rights of the mortgage, life-long inheritable use, leases and the other rights) at the moment of

state registration of the mortgage. Non-fulfillment of this obligation shall give the mortgagee a

right to claim the early fulfillment of the obligation secured by the mortgage or to change the

terms of the mortgage agreement.

Article 13 - Mortgage Certificate

The rights of the mortgagee secured by a mortgage can be certified by a Mortgage Certificate,

which shall be considered like securities. The issuance and circulation of Mortgage Certificates

is regulated by the legislation of the Republic of Tajikistan.

Article 14 - State Registration of the mortgage

A mortgage shall be subject to state registration in the Unified State Register of Immovable

Property and Rights Thereto, in the order established by the Law on State Registration of the

Immovable Property and Rights Thereto.

Chapter 3 - Safety of the Property Secured by Mortgage Agreement

Article 15 - Using of mortgaged property by mortgagor

1. A mortgagor shall reserve the right of the use of the property mortgaged in the

mortgage agreement. The mortgagor shall have the right to use this property in

accordance with its purpose.

Mortgage conditions limiting this right of the mortgagor are invalid.

Unless otherwise provided for in the agreement, the mortgagor should not allow

deterioration of the property and a reduction in its value over that caused by normal

wear while using the mortgaged property.

2. A mortgagor shall have the right to receive income and harvest from the property

mortgaged in the mortgage agreement. A mortgagee does not gain rights to these

incomes unless otherwise provided for in the mortgage agreement.

Article 16 - Maintenance and repair of the mortgaged property

1. Unless otherwise provided for in the mortgage agreement, the mortgagor shall be

obligated to maintain the secured property in a proper condition and incur expenses on

the maintenance of this property until the termination of the mortgage.

2. Unless otherwise provided for in the mortgage agreement, the mortgagor shall be

obligated to carry out routine and overhaul repairs of property secured by mortgage

- 6 -agreement according to the terms and procedure established by law and other normative

legislative acts of the Republic of Tajikistan.

Article 17 - Insurance of the mortgaged property

1. Insuring the property mortgaged in a mortgage agreement shall be voluntary and shall

be implemented in accordance with the terms of such an agreement.

2. In the absence of other terms regarding insuring a mortgaged property in a mortgage

agreement, the mortgagor shall be responsible to insure, at his expense, this property at

its full value from risk of loss and damage, but, if the full value of the property exceeds

the amount secured by the mortgage obligation, then in an amount not below the

amount of this obligation.

3. A mortgagee has a right to satisfaction of the obligation secured by the mortgage,

directly from reimbursement of insurance for loss or damage to the mortgaged property

regardless in whose favor it is insured. This requirement shall be subject to priority

satisfaction before requirements of other creditors of the mortgagor or the persons in

whose favor the insurance is made.

4. The mortgagee shall forfeit the entitlement to satisfaction of his claim from the

insurance premium if the loss or damage to the property occurred through his fault.

5. In cases when the insurance conditions provide provisions contradicting the terms of

this article, such agreement shall be considered invalid.

Article 18 - Measures on protection of mortgaged property from losses and damage

To ensure the safety of a mortgaged property, including its protection from harm by third

persons, fire and natural disasters, the mortgagor must take measures defined in this law and

other legal acts of the Republic Tajikistan and in the mortgage agreement, but if they are not

determined necessary measures, then appropriate to usually-presented requirements.

Article 19 - Protection of the mortgaged property from claims of third persons

1. In cases of claims of other persons to the right of ownership or of other rights to the

mortgaged property regarding its withdrawal or encumbrance of the specified property,

or other requirements whose satisfaction can cause the reduction in the value or

deterioration of this property, the mortgagor is responsible to notify immediately the

mortgagee if he is aware of it. In case of a suit in court the mortgagor must involve the

mortgagee to participate the case.

2. In the cases specified in point 1 of this article, the mortgagor should use the appropriate

protection of their own rights to the mortgaged property, provided by Article 12 of the

Civil Code of the Republic of Tajikistan.

If the mortgagor refuses to protect his own rights to the mortgaged property or does not

fulfill it, the mortgagee has the right to use these means of protection on behalf of the

- 7 -mortgagor without special warrant and to request from the mortgagor indemnity of the

necessary expenses incurred.

3. If the property mortgaged in the mortgage agreement is in the illegal possession of a

third person, the mortgagee has the right acting on his behalf to vindicate this property

from illegal possession in accordance with Articles 322–324 of the Civil Code of the

Republic Tajikistan, to convey it for possession of the mortgagor.

Article 20 - Right of the mortgagee to check the mortgaged property

A mortgagee has the right to check the documents and physical availability, condition and term

of the maintenance of property mortgaged in the mortgage agreement. This right belongs to the

mortgagee and exists even in the event the mortgaged property is transferred temporarily to the

possession of third persons.

The mortgagee should not create unjustified hindrances for use of the mortgaged property by

the mortgagor or other persons possessing it when conducting checks.

Article 21 - Rights of the mortgagee in case the safety of the mortgaged property is

improperly ensured

In gross violation of rules for the use of a mortgaged property by the mortgagor (point 1 of

Article 15), the rules regarding the maintenance or repair of the mortgaged property (Article

16), the duties to take measures for the conservation of this property (Article 18) if such

violation creates the threat of loss or damage to the mortgaged property, as well as in case of

violation of the duties on insurance of a mortgaged property (point 1 and 2 of Article 17) or in

the baseless refusal to check a mortgaged property (Article 20 of the present law), the

mortgagee has the right to request the earlier fulfillment of the obligation secured by mortgage.

If satisfaction of such a requirement is refused or not satisfied in the period provided in the

agreement, or if such a period is not provided, the mortgagee has the right to foreclose on the

mortgaged property within a one-month period.

Article 22 - Consequences of losses or damage to the mortgaged property

1. The mortgagor bears the risk of casual ruin and involuntary damage of the property

mortgaged in the mortgage agreement, unless otherwise provided for in the agreement.

2. If a mortgaged property is lost or damaged, for which the mortgagor is not responsible,

and due to this loss or damage the obligation of the mortgage is significant, the

mortgagee has the right to require the early fulfillment provided in the mortgage

obligation, including indemnity for any insurance in accordance with point 3 of Article

17 of the present law.

3. The mortgagee shall not fulfill his right provided by point 2 of this article if he and the

mortgagor conclude a written agreement on reconstruction or change of the deceased or

damaged property and the mortgagor properly implements the conditions of this

agreement.

- 8 -Chapter 4. Transfer of rights to property mortgaged in the Mortgage Agreement to other

persons and encumbrance of this property by rights of other persons

Article 23 - Alienation of the mortgaged property

1. The property mortgaged in the mortgage agreement can be alienated by the mortgagor

to another person by sale, gift, exchange, contributing it to a property of association or

a share to the property of a production co-operative or in a different way, with the

consent of mortgagee, unless otherwise provided for in the mortgage agreement.

2. The mortgagor has the right to bequeath the mortgaged property. Mortgage conditions

or other agreements limiting this right of the mortgagor shall be invalid.

Article 24 - Reservation of the mortgage in the transfer of mortgaged property to other

persons

1. The person who has taken the mortgaged property by agreement as a result of its

alienation or in order of universal succession, including as a result of the reorganization

of the legal entity or in order of inheritance, becomes the mortgagor and shall bear all

responsibility of the latter in the mortgage agreement, including responsibilities which

were not properly fulfilled by the former mortgagor.

The new mortgagor may be relieved from any of these responsibilities only by

agreement with the mortgagee.

2. If property mortgaged in the mortgage agreement transferred as specified in point 1 of

this article vests in several persons, then each assignee of the primary mortgagor shall

bear responsibility of the subsequent results of non-fulfillment of the obligation secured

by mortgage according to the share of mortgaged property transferred to him. If the

subject of the mortgage (collateral) is indivisible or by other means enters into the

common property of assignees of the mortgagor, the assignees become joint

mortgagors.

3. The mortgage of property in the mortgage agreement has precedence over the violation

of any rules established for transfer of this property to other persons.

Article 25 - Consequences of violating the rules of alienation of the mortgaged property

If property mortgaged in a mortgage agreement was alienated in violation of rules of Article of

23 the present law, the mortgagee shall have a right to claim:

- recognition of the invalidity of the transaction of alienating the mortgaged property

and application of the consequences provided by Article 192 of the Civil Code of the

Republic of Tajikistan;

- early fulfillment of the obligation secured by mortgage and implementation of

foreclosure procedures regardless to whom it belongs.

In the last case, if it is proved that the holder of the property mortgaged in the mortgage

agreement knew or should have been aware at the time of acquisition that the property was

alienated in violation of the rules of Article 23 of the present law, the holder shall bear

responsibility for the value of the specified property for non-fulfillment of the obligation

secured by mortgage jointly with the debtor of this obligation.

If the mortgaged property was alienated in breach of rules specified by the mortgagor not being

a debtor secured by the mortgage obligation, the former mortgagor and purchaser jointly bear

responsibility.

- 9 -Article 26 - Encumbrance of mortgaged property by the rights of other persons

1. Unless otherwise provided for by the law or in the mortgage agreement, the mortgagor

may, without the mortgagee’s consent, having notified him, rent out the secured

property, transfer it for temporary gratuitous use or in agreement with other person

grant to the latter the right of limited use of this property (servitude) on the condition

that:

- the term of use of this property does not exceed the term of the secured obligation;

- the allowed property is used properly in accordance with its designation.

2. Upon foreclosure by the mortgagee of the secured property on the grounds provided by

the law or in the mortgage agreement, all lease rights or other use rights to this property

granted by the mortgagor to third parties without the mortgagee’s consent, following

the entrance into a mortgage agreement, shall terminate from the moment of entry into

force of a court decision on foreclosure, and if the mortgagee’s claims are satisfied in a

non-judicial procedure, from the moment of notary certification of the agreement

between mortgagor and mortgagee on foreclosure in accordance with Article 38 of the

present law.

3. The mortgagor may rent out the secured property to third parties for a term exceeding

the term of the secured obligation or for the purposes contradicting the designation of

the property, only with the mortgagee’s consent.

4. The concession of the secured property by the mortgagor to another person does not

relieve the mortgagor from the performance of obligations in the mortgage agreement,

unless otherwise provided for in the mortgage agreement.

5. For an encumbrance of property mortgaged in the mortgage agreement, the other

mortgage shall be adjusted by the rules of Chapters 5 of the present law.

Article 27 - Consequences of withdrawal of the mortgaged property by the state

1. If the mortgagor ceases to own the secured property on the grounds and in accordance

with the procedure established by the law as a result of withdrawal (expropriation) of

the property for state need, the mortgagor shall be provided with another property or

relevant reimbursement for the expropriation or nationalization.

The mortgagee whose interests cannot be fully protected by the rights as provided in

paragraph 1 of this article may claim an early enforcement of the obligation secured by

mortgage and foreclosure of the property provided to the mortgagee instead of the one

taken.

2. When the state takes the collateral from the mortgagor as a sanction for the commission

of a crime or other offence (confiscation), the mortgage shall remain effective and the

rules of Article 24 of the present law shall apply. However, the mortgagee whose

interests cannot be fully protected by these rules may claim early performance of the

secured obligation and foreclosure of the confiscated property.

Article 28 - Consequences of vindication of mortgaged property

When the secured property is taken from the mortgagor in accordance with the established

procedure on the ground that this property is actually owned by another person (vindication),

- 10 -the mortgage for this property shall terminate. The mortgagee, following the entrance into

force of the relevant court decision, may claim early performance of the obligation secured by

the mortgage collateral.

Chapter 5 - Subsequent Mortgage

Article 29 - Subsequent mortgage and terms under which it is allowed

1. The property mortgaged by a mortgage agreement to secure the fulfillment of one

obligation (prior mortgage), can be given in a mortgage to secure the fulfillment of

another obligation to the same or other debtor from the same or other mortgagee

(subsequent mortgage).

The sequence of the mortgagees shall be established on the basis of the data in the

Unified State Register of Immovable Property and Rights Thereto.

2. A subsequent mortgage is allowed if it is not prohibited by the preceding agreements

on mortgage of the same property whose validity did not stop at the time of the

conclusion of the subsequent mortgage agreement.

If a prior mortgage agreement provides the terms for a subsequent mortgage agreement,

the latter must be concluded in observance of these terms.

3. A subsequent mortgage agreement concluded in spite of a prohibition, determined by

the prior mortgage agreement, can be recognized as invalid by a court based on a claim

of the mortgagee of the prior agreement, regardless of whether the mortgagee of the

subsequent agreement was aware of such a prohibition.

If a subsequent mortgage is not prohibited, but the subsequent agreement is concluded

in breach of the terms provided in the prior agreement, the requirements of the

mortgagee of the following agreement shall be satisfied to the degree and in accordance

with the terms of the prior mortgage agreement.

4. The rules of points 2 and 3 of this article shall not be used if parties in prior and

subsequent mortgage agreements are the same persons.

Article 30 - Notification of mortgagees of prior and subsequent mortgages. Modification

of a prior mortgage agreement

1. Before conclusion of a subsequent mortgage agreement, the mortgagor is responsible

for informing each subsequent mortgagee about any existing mortgage of the property

provided by point 1 of Article 11 of the present law.

Non-execution by the mortgagor of these responsibilities entitles the mortgagee of the

subsequent agreement to terminate the agreement and for indemnification of losses if it

is not proven that he could have obtained the necessary information regarding the prior

mortgage in accordance with the law of the Republic of Tajikistan “On State

Registration of Immovable Property and Rights Thereto”.

2. The mortgagor who concluded a subsequent mortgage agreement should immediately

notify the mortgagees of prior mortgages and at their request provide information on

subsequent mortgages provided by point 1 of Article 11 of the present law.

3. After the conclusion of a subsequent mortgage agreement, a modification of the prior

agreement involving the security of new requirements for the prior mortgagee or

increasing the amount of the requirements already provided in this agreement (Article

- 11 -5), shall be allowed only with the consent of the subsequent agreement mortgagee,

unless otherwise provided for by the prior mortgage agreement.

4. The rules of this article shall not be applicable if the parties in the prior and subsequent

mortgage agreements are the same persons.

Article 31 - Satisfaction of mortgagee requirements for prior and subsequent mortgage

1. The mortgagee’s claims in a subsequent mortgage agreement shall be satisfied from the

value of the mortgaged property in observance of the claims of the right to primary

satisfaction for the mortgagee of the prior mortgage agreement.

2. In the case of foreclosure on a mortgaged property provided by a subsequent mortgage,

the simultaneous prior fulfillment of the obligation secured by mortgage can be

required and foreclosure on this property and on claims provided by the prior mortgage

whose deadline for foreclosure has not yet come. If the mortgagee of a prior mortgage

agreement did not use this right, the foreclosed property provided by the subsequent

mortgage transfers to the purchaser of the encumbered prior mortgage.

3. In the case of foreclosure on a mortgaged property secured by a prior mortgage, the

simultaneous foreclosure on this property and on the obligations provided by a

subsequent mortgage, whose deadline for foreclosure has not yet come, shall be

allowed. The obligations secured by a subsequent mortgage shall not be subject to

earlier satisfaction, if foreclosure on part of a mortgaged property is sufficient for the

satisfaction of obligations provided by the prior mortgage.

4. Before foreclosure on a prior and subsequent mortgage, the mortgagee intending

foreclosure shall be responsible for notifying in writing the other mortgagee in the

mortgage agreement on the same property.

5. The rules of this article shall not be applicable if the mortgagee for the prior and

subsequent mortgage is the same person. In this case obligations secured by each of the

mortgages are satisfied in order of sequence, appropriate to the deadlines for the

fulfillment of the corresponding obligations, unless otherwise provided for in the law or

agreement of the parties.

Chapter 6 - Transfer of right by Mortgage Agreement

Article 32 - Transfer of right by mortgage agreement or obligations secured by mortgage

1. The mortgagee has the right, unless otherwise provided for in the agreement, to transfer

his own right in the mortgage agreement to another person:

- by mortgage agreement;

- by an obligation secured by the mortgage (main obligation).

2. The person who receives the transferred right in the mortgage agreement becomes the

mortgagee, instead of the former mortgagee, by this agreement.

Unless otherwise provided, the transfer of rights in the mortgage agreement means the

transfer of the rights to the obligation secured by the mortgage (main obligation).

3. If not otherwise provided for in the agreement, the person who receives the transferred

right to the obligation (the main obligation) obtains the rights providing for fulfillment

of the obligation.

- 12 -This person becomes the mortgagee, instead of the former mortgagee, to the mortgage

agreement.

The transfer of rights to the obligation secured by mortgage (main obligation) in

accordance with point 1 of Article 418 of the Civil Code of the Republic of Tajikistan

shall be made in the form in which an obligation secured by mortgage (main

obligation) is concluded.

4. For relations between the person receiving the transferred rights and the mortgagee, the

norms of Articles 411, 413–415, 417 and 419 of the Civil Code of the Republic of

Tajikistan on the transfer of creditor’s rights by the transfer of the claim shall be used.

Chapter 7 - Foreclosure on a property mortgaged in the Mortgage Agreement

Article 33 - Basis of foreclosure on a mortgaged property

1. The mortgagee has the right to foreclosure on a property mortgaged in a mortgage

agreement for satisfaction, at the expense of this property named in Article 5 of the

present law, for obligations caused by non-fulfillment or improper fulfillment of

obligations secured by the mortgage, in particular for the non-payment or overdue

payment of the amount of the debt fully or partly, unless otherwise provided for in the

agreement.

If there are contradictions in the terms in the mortgage agreement and the terms of the

obligations secured by the mortgage with respect to that requirements that can be

satisfied by foreclosure on the mortgaged property, preference shall be given to the

terms in the mortgage agreement.

2. Foreclosure on a property shall be permitted if the secured obligation, stipulated as a

periodic payment but with a systematic breach of the periods of payments occurring

more than three times in 12 months, even if each delay is short, unless otherwise

provided for in the mortgage agreement.

3. For claims resulting from the non-fulfillment or improper fulfillment of obligations

secured by a mortgage, foreclosure cannot be used if, in accordance with the terms of

this obligation and laws and other legal acts of the Republic of Tajikistan, the debtor

has been freed from responsibility for such fulfillment or improper fulfillment.

4. In the cases provided for by Articles 21, 25 and 27 of the present law, the mortgagee

has the right to claim early fulfillment of an obligation secured by a mortgage and, for

non-fulfillment of this claim, to ask for foreclosure even if the obligation secured by

mortgage is being fulfilled in a proper way.

Article 34- Court procedure for foreclosure

Foreclosure on a property mortgaged in a mortgage agreement in favor of the mortgagee shall

be carried out according to a court decision, except in cases in accordance with Article 38 of

the present law, where the satisfaction of such requirements shall be permitted without referral

to the court.

Article 35 -Jurisdiction of foreclosure cases

A claim for foreclosure shall be presented in accordance with the rule of jurisdiction

determined in the procedural legislation of the Republic of Tajikistan.

- 13 -Article 36 - Measures for protecting interests of other mortgagees being absent

mortgagor and other persons

1. Upon the foreclosure of property mortgaged under two or more mortgage agreements,

the mortgagee should present to the court, where the respective suit was submitted,

evidence of the fulfillment of responsibilities provided by part 4 of Article 31 of the

present law.

2. If in the case of foreclosure, according to evidence, it comes out that the mortgage was

or must be implemented with the consent of the other persons or authority, the court,

where the suit is heard, shall notify the appropriate persons or body and give them

opportunity to participate in the suit.

3. Persons having the right of use of the mortgaged property (lessees, employers, family

members of the owner of living quarters and other persons) or the property right to this

property (servitude, right of life-long inheritable use and other rights) based on law or

agreement, have the right to participate in the consideration of the foreclosure case.

Article 37 - Issues solved by court during consideration of a foreclosure case

1. Foreclosure can be refused if the debtor’s breach of an obligation secured by a

mortgage is extremely small and the amount of the claim of the mortgagee is

disproportionate to the value of mortgaged property, except the case provided in point 2

of Article 33 of the present law.

2. In making a decision on foreclosure, the court must define and identify the following:

a) the amounts subject to payment to the mortgagee from the value of the mortgaged

property, with the exception of the amount of expenses related to the protection and

sale of the property, which are defined upon completion of its sale. For the amounts,

the estimated interest rate and period of their payment should be specified;

b) the property being the subject of the mortgage (collateral)—the claims of mortgagor

are satisfied from this value;

c) the means of selling the property under foreclosure;

d) the initial selling price of the mortgaged property for the sale. The initial selling

price of the property for public auction shall be defined on the basis of an agreement

between the mortgagor and mortgagee, but in the case of a dispute, by the court with

the involvement of an independent appraiser;

e) the measures for providing for the safety of the property until its sale, if required.

3. According to an application of the mortgagor and upon existence of a reasonable

excuse, the court has the right in the foreclosure decision to postpone its sale for a

period of one year in cases when the mortgagor is an individual, regardless the property

mortgaged by him in the mortgage agreement, on condition that the mortgage is not

connected with entrepreneurial activity by this individual.

In defining the period for postponement for the foreclosure sale, the court takes into

account the amount for satisfaction of a mortgagee’s claim from the value of mortgaged

property, at the moment of expiry of postponement, should not exceed the value of the

mortgaged property defined in the mortgage agreement.

- 14 -The postponement of the sale of a mortgaged property does not refer to the rights and

responsibilities of the parties in the obligation secured by the mortgage, and does not

free the debtor from indemnity of increased losses of the creditor during the time of the

postponement or the interest and forfeitures owed to the creditor.

If the debtor, within the given period, satisfies the requirements of the creditor for the

amount owed until the moment of the satisfaction of the requirement, the court on

application of mortgagor cancels the foreclosure decision.

4. The postponement of the sale of a mortgaged property shall not be allowed if:

- it can cause essential deterioration of the financial situation of the mortgagee;

- an action against the mortgagor or mortgagee is brought which results in insolvency

(bankruptcy).

Article 38 - Foreclosure by extrajudicial procedure

1. The satisfaction of the mortgagee’s requirements from the property mortgaged in the

mortgage agreement without referral to a court shall be allowed on the basis of a notary

certified agreement between the mortgagor and mortgagee, concluded after the reasons

for foreclosure have arisen.

The agreement for satisfaction of the mortgagee’s claims of a subsequent mortgage

agreement shall be valid if it is concluded with the participation of the mortgagee of the

prior mortgage agreement.

2. The satisfaction of the mortgagor’s obligation in order provided by point 1 of this

article shall not be allowed if:

a) the consent or permission of another person or authority is required;

b) the subject of the mortgage (collateral) is an enterprise such as a property complex;

c) the subject of the mortgage is a property having significant historical, artistic or other

cultural value for society;

d) the subject of the mortgage is a property which is in common ownership and any of

its owners fails to give written consent, or any other form stipulated by law, for the

satisfaction of the mortgagee’s obligation in an extrajudicial procedure.

In such events foreclosure shall be carried out according to a court decision.

3. In the agreement for satisfaction of the mortgagee’s obligations, concluded in

accordance with point 1 of this article, the parties (mortgagor and mortgagee) must

provide:

a) the name of mortgaged property in the mortgage agreement from which the

obligations of the mortgagee shall be satisfied and the value of this property;

b) the amount subject to payment to the mortgagee by the debtor, on the basis of the

obligation secured by the mortgage and the mortgage agreement, and if mortgagor is

the third person, by the mortgagor as well;

c) the means of selling the mortgaged property or the terms of purchase by mortgagee;

- 15 -d) mortgages, known to parties, prior to the conclusion of the agreement and

availability of property rights and right of use of third persons with respect to this

property.

4. Upon conclusion of the agreement for satisfaction of the mortgagee’s claim in

accordance with point 1 of this article, the parties should specify the following:

a) sale of the mortgaged property in the order stipulated in Article 39 of the present

law;

b) purchase of the mortgaged property by the mortgagee to himself or by third persons,

including the value of the purchase price of the mortgagee’s obligations to the debtor

secured by the mortgage.

The purchase agreement of the mortgaged property by the mortgagee must be

concluded according to the regulations of civil legislation of the Republic of Tajikistan

regarding agreements on purchase and sale, but in the case of a purchase of a property

by a mortgagee for a third person, the rules on commissions shall apply.

5. The agreement for satisfaction of the mortgage obligation in an extrajudicial procedure,

concluded on the basis of point 1 of this article, can be recognized by a court as invalid

based on a suit brought by the person whose rights are violated by this agreement.

Chapter 8 - Foreclosure Sale of Mortgaged Property

Article 39 - Sale of mortgaged property

1. The sale of property mortgaged in the mortgage agreement, according to the court

decision for foreclosure in accordance with the present law, shall be implemented at

public auction, except for cases provided by the present law.

The procedure of the public auction for the sale of property mortgaged in a mortgage

agreement is defined by the legislation of the Republic of Tajikistan, unless otherwise

established by the present law.

2. In making a decision on foreclosure the court may, with the consent of mortgagor and

mortgagee, define in its decision that the property be subject to sale according to the

procedure provided by Article 42 of the present law. The same means of sale of the

mortgaged property can be provided by the mortgagor and mortgagee in an agreement

for satisfaction of the obligations of the mortgagee in an extrajudicial procedure,

concluded in accordance with point 1 of Article 38 of the present law.

The sale of mortgaged property by auction shall not be permitted when foreclosure

cannot be carried out in an extrajudicial procedure in accordance with point 2 of Article

38 of the present law.

The order of the sale of property mortgaged in a mortgage agreement by auction is

defined by the regulations in Articles 479–481 of the Civil Code of the Republic of

Tajikistan and the present law, but unless otherwise provided, it shall be defined by

agreement for satisfaction of the obligations of the mortgagee in an extrajudicial

procedure.

3. In cases of foreclosure, the right to lease the immovable property shall be realized in

accordance with the rules of the present law, following the subsequent registration of

the transfer of the right.

Article 40 - Procedure for conducting a public auction based on a court decision

- 16 -1. A public auction for the sale of a mortgaged property shall be organized and conducted

in accordance with legislation of the Republic of Tajikistan by the authority responsible

for court decisions, unless otherwise stipulated by law.

2. A public auction for the sale of a mortgaged property shall be conducted at the location

of this property.

3. The organizer of the public auction shall advertise the planned public auction at least

one month before it will be conducted by placing information in periodic mass media

with the date, time and place of the public sale noted, the description of the property for

sale and its initial selling price.

4. The persons interested to take part in the public auction shall contribute an advance in

the amount, period and order, which should be specified in the notification for the

public auction. The amount of the advance cannot exceed 5 percent of the initial selling

price of the mortgaged property.

The advance is subject to return immediately if the person participated in the auction

but did not win or if the public auction did not take place.

5. Participation in a public auction for the sale of a mortgaged property can be limited

only by the local authority in the interest of maintaining public order.

In any case those persons having use rights to the property for sale or other rights to

this property, as well as the mortgagees of subsequent mortgages, have a right to be

present at the public auction.

6. The person offering the highest price for a property at auction shall be considered the

winner. This person and organizer of the public auction shall sign a protocol regarding

the results of the public sale on the day it is conducted. The failure of anyone to sign

the protocol will result in the consequences provided by point 5 of Article 480 of the

Civil Code of the Republic of Tajikistan.

7. The person who won the public auction must, within five days following its

completion, contribute the amount for which he has bought the mortgaged property

(selling price), minus the advance paid earlier to the account specified by the organizer

of the public sale. In the case of non-payment of this amount the advance shall not be

returned.

8. Within five days from the moment of payment of the selling price by the person who

won the auction, the organizer of the public auction shall conclude with him a

purchase/sale agreement. This agreement and protocol regarding the result of the public

sale shall be considered the basis for making the necessary registration in the Unified

State Register of the Immovable Property and Rights Thereto.

Article 41 - Announcement of a failed public auction

1. The organizer of the public auction announces that it has failed when:

a) there were less than two buyers at the auction;

b) no addition was made to the initial selling price of mortgaged property;

c) the person who won the auction has not made payment of the selling price within the

specified period.

The public auction should be announced as having failed not later than the following

day after discovery of the identified circumstances.

- 17 -2. For 10 days after the announcement that the public auction has failed, the mortgagee

has the right to reach an agreement with the mortgagor to purchase the mortgaged

property for its initial selling price at public auction and to charge his own claims to the

first selling price provided by mortgage of this property.

The regulations of civil legislation of the Republic of Tajikistan are used for this

purchase/sale agreement. The mortgage in this case shall terminate.

3. If the agreement on the purchase of the property by the mortgagee provided by point 2

of this article did not take place, not later than one month after the conduction of the

first public auction a repeated public sale is conducted. The initial selling price for the

mortgaged property at the repeated public auction decreases by 15 percent, if it is

caused by reasons specified in sub -points a and b of point 1 of this article.

The repeated public auction shall be conducted in the order provided by Article 40 of

the present law.

4. In case the announcement of the repeated public sale failed for the reasons specified in

point 1 of this article, the mortgagee has the right to purchase (leave for itself) the

mortgaged property for the price no more than 25 percent below the initial selling price

from the first public auction and take the obligations of the mortgaged property from

the account.

If the mortgagee has reserved to himself a mortgaged property, which on its nature and

purpose can not belong to him, including property having significant historical, artistic

or other cultural value for society, he is responsible within one year to alienate the

mentioned property in accordance with Article 262 of the Civil Code of the Republic of

Tajikistan.

5. If mortgagee will not use the right to reserve the subject of the mortgage to himself for

a month after announcement of the repeated failed public auction, the mortgage

terminates.

Article 42 - Sale of mortgaged property by agreement of the parties at the auction

1. A specialized organization is elected by mortgagee, with the consent of mortgagor, as

organizer of the auction for the sale of the mortgaged property, which acts on the basis

of an agreement with mortgagee and acts on behalf of mortgagee or on behalf of itself.

2. The sale of the mortgaged property at auction is allowed if the auction is open.

Sale of mortgaged property at a closed auction is allowed in events only provided by

law.

3. Within five days from the moment of the fulfillment of the claim for payment of

property by the person who won the auction, the organizer of the auction concludes

with him an agreement of purchase and sale. This agreement and protocol about result

of the auction are consider as basis making necessary record to Unified State Register

of the Immovable Property and Rights.

Article 43 - Termination of a foreclosure and sale

1. The debtor provided in the mortgage obligation and the mortgagor being the third

person, have the right to stop the foreclosure, having satisfied all requirements of the

mortgage in the amount up to the moment of the payment of appropriate amounts. This

right can be implemented anytime before the moment of sale of the mortgaged property

- 18 -at a public sale, auction or contest or acquisition of the right by the mortgagee to this

property in accordance with the established procedure.

2. The person requesting termination of foreclosure or sale is obliged to indemnify the

mortgagee for the expenses incurred in connection with the foreclosure and sale.

Article 44 - Distribution of the amount gained from sale of the mortgaged property

The amount gained from sale of property mortgaged in the mortgage agreement, after

subtracting from it the amounts required for covering the expenses in connection with the

foreclosure and sale, shall be distributed among the declared mortgagees and other creditors of

the mortgagor and the mortgagor himself.

Distribution shall be conducted by the authority implementing judicial decisions, but if a

foreclosure was conducted in an extrajudicial procedure, by a notary-certified agreement in

observance of the regulations in Articles 342, point 1 of Article 359 and point 5 and 6 of

Article 379 of the Civil Code of the Republic of Tajikistan, as well as Article 31 of the present

law.

If the subject of the mortgage undergoing foreclosure is a state property, the amounts subject to

transfer to the mortgagor according to the procedure and order of priority, determined by this

article, shall be entered into the corresponding budget.

Chapter 9 - Special Provisions For The Mortgage Of Land Use Rights

Article 45 - Land plots where use rights cannot be mortgaged

1. The mortgage of land use rights is not permitted for the following land plots:

- land of the state reserve;

- land of the state water fund;

- land of the state forest fund;

- land for nature protection, health improvement, recreation, historical and cultural

purposes;

- land for public use

- land for defense purposes;

2. The mortgage of land use rights is not permitted without the mortgage of buildings and

structures located on the land plot.

3. The mortgage of a land use right for a part of a land plot cannot be made until it is as an

independent plot according to its purpose.

4. The mortgage of a lease right for a land plot by the lessee without consent of the

primary land user is not permitted.

5. The mortgage of a fixed short-term land use right and lease right to the land plots with

a 3-year term is not permitted.

- 19 -Article 46 - Special provisions for the mortgage of land plots for an agricultural purpose

1. The value of use of the land plot for an agricultural purpose cannot be defined in the

land use right mortgage agreement lower than cadastre cost of the land plot that is

subject to the mortgage.

2. The mortgagor should provide the following to the mortgagee:

- A copy of the document certifying the land use right, certified by land management

bodies;

- Act of Cadastre cost for the mortgaged land use right;

- A copy of the plan for the land plot for which the land use right is being mortgaged;

- Information on the availability (absence) of limitations (encumbrances) to the land use

right.

The Act of Cadastre cost for the land plot, copy of land plot plan, information on

availability (absence) of limitations (encumbrances) to the land use right shall be issued

by the authorized state bodies in accordance with the established procedure.

3. The mortgage of a land use right cannot be the basis to change the purpose of the land

plot.

Article 47 - Special provisions for the mortgage of farm land use rights

The right to use a land plot can be mortgaged by a dehkan farm only with the consent of all its

members taking into account the requirements of Article 46 of the present law.

Article 48 - Special provisions for the foreclosure and sale of mortgaged land use rights

1. Foreclosure on a land use right mortgaged under a mortgage agreement may be denied

if the debtor’s default on the principal obligation is insignificant and the mortgagee’s

claims are explicitly incommensurate with the normative value of the mortgaged land

use right.

2. The foreclosure of the mortgaged land use right parcel shall be allowed if the

mortgagor has no other property mortgaged under this mortgage agreement.

3. The foreclosure of the mortgaged land use right in case of non-fulfillment or improper

fulfillment of the obligation secured by the mortgage shall be implemented by

transferring the land use right from the mortgagor to the mortgagee on the terms

defined in the notary-certified agreement of the parties and in the case of the absence of

these terms on the basis of a court decision by the mortgagee’s claim.

4. If there are valid causes for the default related to the use of agricultural land, and which

are recognizable as the reasons for the default, such as a bad harvest and other extreme

weather conditions, at the mortgagor’s request the court may postpone the sale of this

land plot for a period up to one year.

By defining the period of the postponement, the court shall, inter alia, take into

consideration that the amount of the mortgagee’s claims to be satisfied from the value

- 20 -of the mortgaged land use right at the moment of the expiration of the deferral must not

exceed the appraised value of the mortgaged land use right specified in the mortgage

agreement. The court shall take into account the financial performance of the

mortgagee or the fact of initiating the bankruptcy process against the mortgagor

(debtor).

The deferral shall not affect the rights and responsibilities of the parties under the

obligation secured by the mortgage of this property and shall not relieve the debtor

from reimbursement of the mortgagee’s damages accrued during the deferral and the

interest and forfeitures due to the mortgagee (creditor).

5. A person obtaining the land use right does not have the right to change the purpose of

the land plot.

In case the land plot, obtained as a life-long inheritable land use right, cannot be used

according to its purpose in accordance with Article 12 of Land Code of the Republic of

Tajikistan, this right is subject to be changed to a long-term right or fixed-term right of

land use and re-registered in accordance with the established procedure.

6. The sale and purchase of the land use right by public auction shall be implemented in

observance of the requirements provided by the present law.

Article 49 - Preemptive right of lease or purchase of agricultural land plots by the

mortgagor

1. In the case of the lease of an agricultural land plot by a buyer (or mortgagee) who

purchased it at auction or by a mortgagee in accordance with the requirements of the

Article 48 of present law, the mortgagor has the preemptive right to conclude a lease

agreement for this land plot within one year from the moment of its alienation at the

auction to the buyer (or mortgagee) on equal terms with other persons.

The lessor of land plot is obliged to inform the mortgagor in writing of the intention to

transfer the land plot by leasing it to another person along with the definition of the

lease term, lease payment and other significant lease conditions. If the mortgagor

refuses the lease and will not conclude the lease agreement within one month from the

day of notification, then the lessor is entitled to transfer the land plot by lease to the

other person.

If the lease of the land plot violates the mortgagor’s preemptive right, the mortgagor is

entitled within three months to claim in court the transfer of rights and obligations of

the lessor to himself.

2. In the case of sale of an agricultural land plot to a buyer (or mortgagee) who purchased

it at auction or by a mortgagee who acquired it himself in accordance with the

requirements of Article 48 of the present law, the mortgagor has a preemptive right to

purchase this land plot within one year from the moment of its alienation at auction to

the buyer (or mortgagee) on equal terms with other persons.

The seller of the agricultural land plot is obliged to inform the mortgagor in writing of

the intention to sell the land plot to another person, along with the definition of the

price and other significant terms of the sale. If the mortgagor refuses the purchase or

does not purchase the land plot within one month from the day of notification, then the

seller has the right to sell the land plot to the other person.

If the sale of land plot violates the preemptive right of purchase, the mortgagor has the

right within three months to claim in court the transfer of rights and obligations to

himself.

- 21 -The rules of the present point are also applied to alienation of a land plot by an

exchange agreement.

3. The mortgagor is not permitted to relinquish his preemptive rights to lease or purchase.

Chapter 10 - Special Provisions For The Mortgage Of Dwelling Houses And

Apartments

Article 50 - Procedure for the mortgage of dwelling houses and apartments

1. The specified procedure of the present chapter shall be used for mortgages assigned for

the permanent residences of individuals and dwelling houses and apartments, belonging

to individuals or legal entities.

2. Mortgaging individual and dwelling houses and apartments that are state property shall

not be permitted.

3. Hotels, rest homes, dachas, garden lodges and the other structures and premises not

assigned for permanent residence, can be the subject of a mortgage as for any other

property.

The rules established for the mortgage of dwelling houses and apartments do not apply

to them.

4. If part of a residential house or part of an apartment consisting of one or more isolated

rooms is mortgaged, the rules of the present law regarding the mortgage of dwelling

houses and apartments shall apply.

5. The mortgage of dwelling houses or apartments which are the property of a minor or of

persons of limited ability or those unable to function, who have been provided with

trusteeship or guardianship, shall be implemented in accordance with legislation of the

Republic of Tajikistan for the completion of a property transaction under wardship.

Article 51 - Mortgage of apartments in tenement houses

The mortgage of a flat in a multi-flat building, parts which that are jointly owned by the

mortgagor and other persons, the respective interests in the common property shall be deemed

mortgaged along with the flat.

Article 52 - Mortgage of dwelling houses under construction

Upon granting a credit or purposeful loan for construction of a residential house, the mortgage

agreement may provide that the obligation can be secured by a mortgage on the mortgagor’s

flats, incomplete construction and materials and equipment designated for the construction.

The mortgage shall not be terminated upon completion of the residential house construction.

Article 53 - Mortgage of dwelling houses and apartments purchased by credits from

banks or other credit organizations

1. Unless otherwise provided for by law or agreement, a dwelling house or apartment

purchased or built completely or partially with the use of a credit from a bank or other

credit organization, or purposeful loan given by another legal entity for the purchase or

construction of a dwelling house or apartment shall be considered as being mortgages

- 22 -from the moment of state registration of the ownership of the borrower of the dwelling

house or apartment.

The mortgagee is the bank or other credit organization or legal entity that provided

credit or the purposeful loan for purchase or construction of the dwelling house or

apartment.

2. For the mortgage of a dwelling house or apartment based on Point 1 of this article, the

rules of mortgage of immovable property arising in view of the agreement shall be

applied.

Article 54 - Foreclosure of dwelling house or apartment

1. Foreclosure on a dwelling house or apartment and the sale of this property shall be

reasons for the transfer of the right of use by the mortgagor and any other persons

living in the dwelling house or apartment, on condition that the dwelling house or

apartment was mortgaged in the mortgage agreement or based on a legal mortgage, to

secure the repayment of the purposeful loan provided by a bank or other credit

organization or another legal entity of this kind or other dwelling houses or apartments,

their capital repair or other inseparable improvement, and also for paying off earlier

credit or loans for the purchase or construction of dwelling house or apartments.

The foreclosure of a dwelling house or apartment is possible both in court and in

extrajudicial order in observance of the rules, provided by Chapter 7 of the present law.

Vacating the dwelling house or apartments is implemented in the order stipulated by

law.

3. The agreement to hire or lease the dwelling house shall be concluded before the

mortgage or with the consent of mortgagee after creation of the mortgage on sale of

dwelling house remains in force. The terms of its termination shall be defined by the

Civil Code of the Republic of Tajikistan and housing legislation of the Republic

Tajikistan.

Chapter 11 - Final Provisions

Article 55 - Responsibility for violating the present law

Individuals and legal entities bear the responsibility for violating of the present law in

accordance with the legislation of the Republic of Tajikistan.

Article 56 - Invalidity of the Law on Mortgage of the Republic of Tajikistan

The law of the Republic of Tajikistan “On Mortgage” (Bulletin of Supreme Soviet of the

Republic of Tajikistan, 1994, No14, p. 205; Bulletin of Majlisi Oli of the Republic of

Tajikistan, 1995, No22, p. 280; 1997 No9, p. 117, chapter XXIX; 1998, No10, p. 123, chapter

I) is annulled.

- 23 -Article 57 - Effectiveness of the following law

This law shall become effective from the date of its official publication.

- 24 -