Only Land Plots With A Cadastral Number Can Serve As Security

On 20 December 2011, the Parliament of Ukraine adopted the Law of Ukraine "On Amendments to several Legislative Acts of Ukraine with regards to Strengthening of Control over the Conclusion of Pledge Agreements and Mortgage Agreements and the Title to Them" No. 4188-VI (the "Law"). The Law became effective on 13 January 2012.

The Law amends the Land Code of Ukraine No. 2768-III, dated 25 October 2001, as amended (the "Land Code") and makes a cadastral number a pre-requisite for mortgages and pledges over land.  Additionally, the Law amends the Law of Ukraine "On Mortgage" No. 898-IV, dated 5 June 2003, as  amended (the "Mortgage Law"), such that mortgage agreements must include the cadastral number of the relevant land plot as well as other essential provisions which help to identify it.