N.Dotsenko-Belous: "Mortgages - outside the law"





18.11.2010 12:03
Ministry of Justice has divided the legal position of Natalia Dotsenko-Belous for unlawful use of bonds to finance construction of housing, from 27.07.2010, in connection with the entry into force of the Law of Ukraine № 2367 from 29.06.2010, the Changes in the Ukrainian regulatory framework construction sector Building.ua told initiator document review of this issue, a senior lawyer Vasil Kisil & Partners Natalia Dotsenko-Belous.

On the law
. In compliance with the letter of the Ministry of Justice of Ukraine "the application of such securities as the mortgage as a mechanism for financing the construction of housing projects with private funds raised from individuals and legal persons does not correspond to current legislation in connection with the entry into force of the law number 2367 from 29.06. 2010.

On the process. July 31, 2010 counsel Vasil Kisil and Partners, it was stated that in view of recent legislative changes, namely the entry into force of the earlier law, the continued use of bonds for the purpose of raising funds in the construction of an unlawful activity, resulting in to a substantial increase in investor risk - the potential homebuyers. Mentioned law was amended in Article 4 of the Law of Ukraine "On investment activity". In accordance with the amended methods for financing housing, which are not defined in Article 4 of the Law of Ukraine "On investment activity", are determined exclusively by laws. In turn, the laws governing the use of mortgages, are the Law of Ukraine "On mortgage", the Law of Ukraine "On securities and stock market."

On the basis of mortgages
. These laws are considering it as a way of mortgage refinancing, and not as a way of selling real estate under construction (though not explicitly prohibit this activity, because the mortgage has been and remains a security). Previously, the use of bonds to finance construction of housing was based on the lack of requirements in terms of a separate legal regulation of the possibility of using the tool for those purposes.

I want to draw attention to the fact that private and public notaries advised to refrain from identity mortgages, subject to mortgages on which are property rights to the apartment, if these agreements provide for the issuance of bonds.

Dotsenko-Belous Natalia
www.zagorodna.com

Content tags: Legislation
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