Under Cyprus Law, a pledgee, in the event of default of the
pledgor, may:
(a) bring an action against the pledgor, upon the secured debt,
and retain the pledge, as a collateral security; or
(b) sell the pledged assets as per the methods provided in the
pledge agreement, after obtaining an expert and proper valuation of
the pledged assets, and giving to the pledgor the reasonable
written notice as per Section 134 of Contract Law CAP. 113, about
its intention to sell the pledged assets; and/or
(c) appropriate the pledged assets, provided the requirements
set out in the Financial Collateral Law (Law 43 (I)/2004) are
satisfied.
The pledgee (as the mortgagee) has a duty to act in good faith,
and also to take reasonable care to obtain the true market value,
or the proper price of the pledged assets, at the date on which it
decides to sell same (see CUCKMERE BRICK CO LTD -V- MUTUAL FINANCE
LTD (1971) CH 999). The pledgee cannot sell the pledged assets to
itself, or
