Law on Secured Transactions Provide an overview of the legal framework applicable to pledges over property

In many civil transactions, in order to bind the performance of an obligation, the parties have used security. In fact, the obligation to secure the obligations is being used more and more and one of the most common security measures we come across is a mortgage. So, what is a mortgage? What are the provisions of the current Civil Code on the pledge of property? To answer the question, let’s take a look at topic: “Provide an overview of the legal framework applicable to pledges over property”.

TABLE OF CONTENTS HANOI LAW UNIVERSITY LAW OF HIGH QUALITY Question: Provide an overview of the legal framework applicable to pledges over property I INTRODUCTION In many civil transactions, in order to bind the performance of an obligation, the parties have used security In fact, the obligation to secure the obligations is being used more and more and one of the most common security measures we come across is a mortgage So, what is a mortgage? What are the provisions of the current Civil Code on the pledge of property? To answer the question, let’s take a look at topic: “Provide an overview of the legal framework applicable to pledges over property” BODY II Definition of pledges over property According to Article 309, Civil Code 2015, pledge of property means the delivery by one party (hereinafter referred to as the pledgor) of property under its ownership to another party (hereinafter referred to as the pledgee) as security for the performance of an obligation Therefore, pledge of property means that one person pre-holds (pre-holds) an asset of another to secure his / her rights and interests The legal framework applicable to pledges over property The legal framework applicable to pledge of property is specified from Articles 309 to Article 316 and Article 303, 304, 307 of the Civil Code 2015 2.1 Form of pledge of property The Civil Code does not clearly define the form of the pledge of property, but it can be understood from Article 310 that if the pledge is movables, it can be oral or in writing form If the pledge is real estate, it must be in writing The pledged document is not required to be notarized, authenticated, or registered unless required by law 2.2 Features of property mortgage relationship The mortgage relationship of pledges has its own legal characteristics compared to other security measures as follows: (i) The pledge relationship requires the transfer of the collateral from the pledge to the management pledge during the term of the pledge contract; (ii) Agreement on a pledge of property shall take effect from the time of concluding, unless otherwise agreed or prescribed by law; (iii) A pawn relationship is the development of a professional pledge relationship in the form of a money trading service with a pledge of security; called pawn The pawnbroker must be the subject registered for the pawn business, must comply with the provisions of the law on lending interest rates, preservation, and handling of pawns 2.3 The object of pledge over property The object of pledges over the property can only be property The object of the pledge is called the pledge Considering the nature of the pledge is that the pledge party must hand over the property to the pledged party, so the pledged property can only be available at the time the pledge transaction is established Valuable papers can only be collateral if the papers are themselves an asset Objects used as pledge can be movable property or immovable property, but must meet the following conditions: (i) The pledged object must be in the possession of the pledger; (ii) The pledged object must be an object permitted to be transferred 2.4 Effectiveness and term of pledge over property Agreement on pledge of property shall take effect from the time of concluding, unless otherwise agree or prescribed by law The pledged property has an antagonistic effect with the third person from the time the pledgee holds the pledged property If the real estate is the object of the pledge in accordance with the law, the pledge of immovable property shall have an antagonistic effect against a third person from the time of registration.1 The term of property pledge shall be agreed upon by the parties In the absence of an agreement, the mortgage term shall be calculated until the termination of the obligation secured by the pledge 2.5 Subject of pledged over property The pledge can be the pledge, the pledge or a third party with related rights and obligations The pledgors and the pledgees both have different rights and obligations which are clearly defined from Article 311 to Article 314 of the Civil Code 2015 2.6 Dispose of the pledged property and terminate the pledge When the time is due to perform the obligations but the pledge does not or improperly perform the obligations, the pledged party has the right to dispose of the pledged property to compensate for the benefits of the other party not really performed, improperly or incomplete2 If upon agreement on the pledge, the parties have agreed on the method of handling the pledged property, the pledge recipient shall treat the property according to that method In the case, the parties have not yet agreed on the method Kim Phượng, Cầm cố tài sản để quy định pháp luật, Bạc Liêu Online, p.3 Nông Thị Thùy Linh, Quy định pháp luật cầm cố tài sản, Public Security People Publishing, p.5 of handling the pledged property, the pledged property will be auctioned in accordance with the law When the pledged property is disposed of the pledge will terminate In addition, the pledge of property is considered terminated when the obligation secured by the pledge ends; The pledge of the property has been canceled or substituted by other security or by agreement of the parties (Article 315) 2.7 Return of pledged property The return of the pledged property upon termination of the pledge is only applicable to the termination of the pledge due to the termination of the mortgage obligations or the termination of the pledge due to the pledge property is destroyed or replaced with another security At that time, the pledged party is responsible for returning the pledged party, the certificate of ownership including the yield and income from the pledged property if the parties not have an agreement related to this issue III CONCLUSION Thus, a pledge of property is often placed in addition to a civil contract but may also be placed in addition to an out-of-contract obligation In all cases, a pledge of property is an agreement between the parties on the parties' property and obligations, and the obligor must hand over to the obligee an asset under its ownership to secure the obligation of the civil LIST OF REFERENCES Civil Code 2015 Civil Law Curriculum Nông Thị Thùy Linh, Quy định pháp luật cầm cố tài sản, Public Security People Publishing Kim Phượng, Cầm cố tài sản để quy định pháp luật, Bạc Liêu Online TABLE OF CONTENTS 10