Azernews.Az

Uzbekistan's President Islam Karimov signed a law "On the mortgage registry", a single information database on the rights of creditors for the debtor's property provided as a collateral for liabilities.

The law was adopted by the Legislative (lower) Chamber of Oliy Majlis (Supreme Assemby) of Uzbekistan in July this year, and approved by the Senate, the upper house, in August.

Legal entities and individuals, acting as lenders that have a contract with an authorized registry organization, can make or exclude records from the mortgage registry and receive statements from the registry. Investigation and scrutinizing authorities with the right to impose restrictions on the disposal of property, the state tax and customs service bodies may also carry out these operations.

According to the law, in addition to the records on creditors' rights to debtors' property that is provided as a collateral, the mortgage registry may also include the records on the court's decision on repossession of property, on limiting the debtor's rights for disposition of property (seizure of property, suspension of operations on bank accounts), as well as records on the requirements for repayment of tax debt and other mandatory payments of the debtor.

Making records in the mortgage registry is conducted by the lender ​​with the debtor's consent.

Records on the court ruling on redress against the debtor's property or exclusion of the property's part from the record and changes to the information in it are maintained by the creditor without the debtor's consent.

If the debtor has tax arrears and other obligatory payments the state tax and customs service bodies compile records without the debtor's consent.

In case of a decision on limiting the debtor's rights on property disposition the bodies in charge of investigation and inquiries also make records without the consent of the debtor.

Debtors can include objections to the record if the debtor believes that the record is biased and unreliable.

According to the law's final clause, it will go into effect from July 1, 2014.