Unified Register of Pledges of Movable Property – Follow Up


This is an update of our alert dated 5 December 2012. Since our prior alert, there have been certain legislation changes addressed below.

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 envisaged).

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 created prior 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 Register; and
  • Protection of the pledge from the bona fide acquirer[1]. 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.


Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick, Herrington & Sutcliffe LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.