1. Entering the
data on pledge into the register of movable property encumbered with pledge:
cases and types of movable property
The register of movable property encumbered with
pledge (further – the Register) includes the data on movable property in the
event of encumbrance with pledge.
The Register is formed pursuant to the
Law On Encumbrance of Movable Property, № 667-VQ of May 2, 2017
(further – the Law) and the Decree On Approval of Procedure
for Maintaining the State Register of Encumbrance of Movable Property and
The Amount of Fee for Use the State Register of Encumbrance of
Movable Property, No. 1901 of March 29, 2018.
You can learn more about the Register and data
therein on the official website https://mpcr.e-cbar.az/home.
The Law does not require private pledge holders
to enter data on the pledge of movable property into the Register, for example,
data on the pledgee, the pledger, the subject of the pledge, the pledge
agreement, etc. Therefore, this is the right of private pledge holder to enter
such data into the Register. However, the disclosure of the pledge of movable
property in the Register for types of state and municipal encumbrances is
compulsory (Article 5.1).
The Register contains the data on the pledge of
movable property: motor vehicles, office and household appliances, furniture,
except for items that are the subject of pledge, items withdrawn from
circulation, claims inextricably linked to the identity of the creditor, in
particular claims for alimony, compensation for damage caused to life or
health, and others rights, the assignment of which to another person is
prohibited by law (the Civil Code, Article 276.1). Information on other
restrictions, third party rights, such as: the right of retention, the right of
redemption of leased property, etc. is not subject to entry into the
Register.
2. The effects of failure to enter
(non-disclosure to third parties) data in the Register?
Failure to enter the true and complete data into
the Register does not affect the entry into force or validity of the Pledge
Agreement. Moreover, the data is entered into the Register after the right of
pledge arises. So, we can conclude that the emergence of a pledge right (a
lien) has nothing to do with entry of data into the Register. However,
considering that one and the same movable property may be the subject of
several encumbrances (the Law, Articles 3.2, 6.1), the pledge holder who has
not entered the required data into the Register loses the advantage in relation
to other pledge holders who have entered the relevant data into the Register
(The Law On Encumbrance of Movable Property, Article 6.1.1, Article 5.3).
The loss of the advantage means that the pledge
holders who have failed to enter data into the Register shall be entitled to
meet their claims for account of the subject of pledge only upon the
satisfaction of the claims of other pledge holders who have entered true and
complete data into the Register. You should also be noted that the effects
also occur for pledge holders who have entered into the Register:
— data that fails to correspond to the
requirements (the Law on Encumbrance of Movable Property, Article 20.7) (except
for clerical errors);
— false data (the Law On Encumbrance of Movable
Property, Article 20.6).
Searching for data in the Register, issuing an
Extract from the Register, fee for using the Register
The search for data in the Register on the debtor
or the person who creates encumbrance is carried out in connection with a state
or municipal body, as well as a legal entity based on its taxpayer
identification number, in connection with a foreign legal entity based on the
full name in Latin letters, in connection with an individual based on his
taxpayer identification number, in connection with a foreign citizen on based
on the series and number of his passport, the unique registration number of the
notification related to the encumbrance, available in the Register (The Law On
Encumbrance of Movable Property, Article 26.1.)
No fee is charged for the search in the Register
and for the issue of data to the person conducting search on request through
the Register, as well as by the means of a
report on the search results in the electronic form (The Law On Encumbrance of
Movable Property, Article 26.2.).
A fee is charged for entry into the
register of the notice of encumbrance, entry into the
register of the notice of changes to encumbrance, as well
as for providing the person searching for data in the Register upon his request
with an approved report on the search results in hard copy (Decree On the
Approval of Procedure for Maintaining the State Register of Encumbrance of
Movable Property and The Amount of Fee for Use the State Register of Encumbrance
of Movable Property, Article 12):
1. Fee for entry into the
register of the notice of encumbrance – AZN 2.00
2. Fee for entry into the
register of the notice of changes to encumbrance – AZN 1.00
3. Fee for issue of
Approved report on the search results in hard copy– AZN 1.00