Uzbekistan approves law on mortgage registry
Uzbekistan, Tashkent, Oct. 24 /Trend, D. Azizov/
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 security for liabilities.
The law was adopted by the Legislative (lower) Chamber of Oliy Majlis (Supreme Assemby) of Uzbekistan in July, and approved by the Senate (the upper house) in August this year.
The mortgage registry is kept by a division of the Uzbek Central Bank.
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 inquiry 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 mortgage, 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 the property (seizure of property, the suspension of operations on bank accounts), as well as records on the requirements for repayment of tax debts and the debtor's other mandatory payments.
Making records in the mortgage registry is conducted by the lender with the debtor's consent.
Records on the court's decision on the recovery against the debtor's property, or the exclusion of the property's part from the record, or changes to the information in it are conducted by the creditor without the debtor's consent.
If the debtor has debts on taxes and other obligatory payments the state tax and customs service bodies make records without the debtor's consent.
In case of the decision on limiting the debtor's rights on the property disposition the bodies 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, and the lender has refused to exclude or to modify it.
The law also defines the responsibility of users to ensure the accuracy and timely change to mortgage information.
According to the law's final article, it will enter into the force from July 1, 2014.