Client Alert On Secured Transactions Law In Azerbaijan

In late May 2017 the President of the Republic of Azerbaijan signed the new Law on Secured Transactions with Movable Property.  The law was prepared based on the UNCITRAL Model Law on Secured Transactions.

We summarize below the major aspects of the new law.

Scope of the Law.  Functional Approach

The new law applies to any existing or future movable property, and related rights and claims, except for movable property that is registered in an official registry (e.g., vehicles, tractors, etc.) and securities that are subject to state registration. A security interest created in relation to the movable property under the new law will apply to fixtures, proceeds (whether in cash or in kind), any compensation received by the security provider from the forced sale, requisition or nationalization of the collateral, as well as to any insurance proceeds in relation to the collateral.