Q&A: Securing Obligations In Kazakhstan

1. How the pledge contract is created, and is there any restrictions on who can be a pledger?

A pledge is created by contract, either by a separate pledge agreement or through a clause in the agreement. The pledge agreement must be in writing. Along with that, both the debtor himself and a third party can be the pledger.

2. What property can act as a pledge?

Any property can act as a pledge, with the exception of things withdrawn from circulation. It is possible to secure debts not yet existing (future or conditional), debts expressed in foreign currency, and even fluctuating debt. The once registered, will give the lenders a priority security interest in the collateral.

3. Can a common property be pledged?