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Russia Adopts New Pledge and Mortgage Legislation

February 2009 - Finance. Legal Developments by Baker & McKenzie.

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On December 30, 2008, Federal Law No. 306-FZ "On Amendments to Certain Legislative Acts of the Russian Federation Regarding the Improvement of Procedures of Pledge Foreclosure" ("Law 306-FZ") was adopted as one of the anti-crisis measures of the Russian Government. The Law 306-FZ introduces a substantial overhaul of the existing regulatory framework of pledges under Russian law. As a result of the passing of this law, banks have obtained new ways of enforcing loans provided to Russian borrowers and secured by pledge under Russian law.

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