ARTICLE · 16 FEBRUARY 2015
Taking Security In Kazakhstan
Kazakh law provides for several methods of securing obligation. Obligations could be secured by penalty, pledge, surety, guarantee, deposit, withholding the debtor’s property, guarantee deposit, and other methods stipulated by legislation or agreement.
KazakhstanFinance and Banking
I. INTRODUCTION
- Kazakh law provides for several
methods of securing obligation. Obligations could be secured by
penalty, pledge, surety, guarantee, deposit, withholding the
debtor's property, guarantee deposit, and other methods
stipulated by legislation or agreement (see article 292 of the
Civil Code)1. Invalidity of a security agreement does
not invalidate the main obligation. In contrast, invalidity of the
main obligation would invalidate the obligation under security
agreement, for security is an accessory obligation under Kazakh
law.
- The most commonly used forms of
security in Kazakhstan are pledges and guarantees.
- Though assignment is not strictly
speaking a type of security under Kazakh law, it is quite often a
part of a standard security package in international finance
transactions.
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