real estate received by agreement "on buy off" could be recognized invalid.
According to the new act "On mortgage" contractual selling of real estate is possible.
The most important novelty of this law was emerging "mortgage bond"-encumbrance as a kind of securities, freely circulating in the market. ** Though Commissions on Securities under President still has not issued appropriate instruction, but at first glance, there are no encumbrances for issue of mortgage bonds already nowadays. There is no need to prove advantages of the mortgage over "simple" agreement on mortgage crediting. Mortgage bond is a nominal security certifying right of its holder on fulfillment of liability, backed by mortgage of property indicated in the agreement on mortgage, without submission of other proofs of existence of this obligation and the very
* Decree of the Moscow Government N365 from the 25th of April 1995 "On
principles of mortgage crediting in Moscow ". p> ** Chapter 3 of the Federal law N102-FL of July 16, 1998 "On Mortgage". p> right of gage on property indicated in the agreement on mortgage. The mortgage bond is issued to the initial pledge by body conducting State registration of mortgage, after actual State registration of the mortgage and is transferred by fulfillment of endorsement (partly similar to bill, under condition of observance rules of state registration).
The mortgage ensures payment to the pledge of capital amount of the debt under the credit agreement or other liability, backed by mortgage, completely or in a part, foreseen by agreement on mortgage.
Table 1
Obligation Secured by Mortgage
Obligation Secured by Mortgage
