On 12 October 2011, the Ministry of Economic Development of the Russian Federation published a federal draft law aimed at creating a unified system to register pledges over movable property (the "Draft Law").
Specifically, the Draft Law proposes:
- registering pledges of equipment and transport vehicles, provided that they have specific identification numbers;
- requiring the pledgee to send notification on the pledge of property to the specific registrar (credit history bureau) within three days of the right of the pledge coming into force;
- requiring credit organisations to accept notification from pledgees that are not credit organisations and to transfer them to the specific registrar/credit history bureau;
- setting out directly that the registration of a notification is not the basis for a pledge to come into force or be terminated; and
- creating a central catalogue of credit histories to store information on the registration of notifications on pledges of property.
In the opinion of the authors of the Draft Law, passing it into law will allow for (i) the protection of pledgees providing loans on a regular basis; (ii) improve the attractiveness and reliability of the concept of pledge of movable property; (iii) offer creditors the opportunity to minimise their risks; and (iv) increase the volume of credit and its accessibility.
[Federal Draft Law "On Registering Information on a Pledge or another Encumbrance of Movable Property" available in Russian at: http://www.economy.gov.ru/minec/activity/sections/ria/main/anounce/doc20111012_09]