Promise mortgage business

Will the business take advantage of the mechanism mortgage when buying a commercial property, including offices, warehouses and so on? On this question tomorrow will answer the deputies considered the draft law amending the law on the mortgage. The bill proposes that article 77 of the Law "On Mortgage (mortgage)" in the new edition, particularly by extending the mortgage houses and apartments for the mortgage non-residential buildings and premises. The authors of the bill argue that a law will help create an efficient mechanism of lending to small and medium businesses to acquire real estate. For it is proposed to establish a mechanism for objects uninhabited purpose of the kind provided by Articles 61.1, and 77 of the law on the mortgage. Recall that these articles state that the objects of housing and land that are purchased with borrowed funds, are deemed to be pledged with the lender after the state registration of ownership of the borrower to the appropriate property. With respect to the non-residential buildings, structures, premises, such provision of law is absent. Law enforcement practice, the authors say the bill is on the way of non-expansive interpretation of the provisions of the above articles of the law of mortgages and, accordingly, does not recognize the possibility of a pledge in favor of a credit institution under the law when purchasing a building, structure or non-residential premises at the expense leveraged lending institution. This, in turn, implies the impossibility of simultaneous registration of ownership of an object and its collateral. However, the arguments of authors to change the legislation did not find support from the government and responsible for the bill in committee of property. In an official report on the government bill states that the title of the bill does not match its content. Thus, under the name of the bill, the changes made in Article 70 of the Act. However, based on the content of the bill, proposed new wording of Article 77 of the law. In addition, please note that Chapter XIII of the law on the mortgage, which includes a variable with the draft article 77 regulates the relations concerning the characteristics of the mortgage of residential houses and apartments. In accordance with paragraph 1 of article 74 of law rules titled chapter apply to mortgages designed for permanent living individual and multi-family homes and apartments belonging to the ownership of citizens or legal entities. In this regard, the changes proposed by the bill go beyond the subject of legal regulation as Article 77 and Chapter XIII of the law. In turn, the Property Committee considers unwarranted extension of the law on the mortgage on the relationship between entrepreneurs and lenders. Moreover, the committee believes that the bill contradicts one of the conceptual provisions of the Civil Code and Law on the mortgage, under which mortgage the building or structure shall be permitted only with the simultaneous mortgage of the land on which the specified property. The bill provides for a guarantee of non-residential buildings. In addition, the Committee noted that currently the issue of repayment of credit bank or other credit organization or the trust of the loan used for construction of buildings that have already been resolved. In accordance with Article 64 of the law on the mortgage, the land on which to use loan funds or loan funds target is built or constructed building, is considered to be a pledge of the state registration of ownership to the borrower or constructed buildings under construction or with the receipt of the body conducting the state registration of rights notice to the mortgagor and mortgagee loan agreement (contract purpose loan) with the application of the treaty. In other cases, the acquisition of legal entities and individual entrepreneurs, non-residential buildings and facilities (for example, by buying them), nothing prevents the contracts include credit agreements or the target condition of the loan contract mortgage the appropriate non-residential premises on similar terms. Law enforcement practice confirms the widespread use of such an approach.