Article title: TOTAL SECURITY DEPOSIT: PROBLEMS OF APPLICATION OF ABZ. 2 A. 2 ST. 339 GK RF

Article author: Dushin Vladimir Gennadievich

Number of pages: 6

Contact mail: 8623_dushinvg@mail.ru

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Annotation:
This report is dedicated to the problems, arising from the application of provisions, stated in the second paragraph of part 2 article 339 of the Civil code of the Russian Federation, which allow a person, carrying out business activities, to pledge all his property or its part ,or property of some kind or type to a single creditor. Such pledge in legal literature is called “total”, “universal” pledge or “global” security. However current judicial practice that could help understand the meaning and place of “total security” in Russian law is absent at the moment. “Total security” provisions stand separate from the basic part of civil law. There are no binding regulations. It is hard to comprehend how provisions of article 339 of CC of RF correspond with those of mortgage law, of pledge of goods in circulation, of bona fide purchaser of pledged property, of grounds for termination of pledge, of pledge of shares and undocumented securities, of priority of satisfaction of requirements, of legislation on notaries and so on. Also the question of the scope of property identification in case of certain part of property pledge or of some kind or type of property pledge is still open. Is it enough to state only the kind of property in case of means of transport pledge? For example, in this situation, is it enough to state that all means of transport in possession of the pledgor are pledged? Or is extra identification of this type of property necessary in case of pledge notifications registration? Uncertainty in the application of provisions, stated in article 339 of CC of RF, causes reluctance of creditors to use them in the process of registration of security. Author of the report attempts to grasp the aim of the legislator, which he pursued by fixing this novel in civil legislation, to value the practical meaning of “total pledge” and figure out its place in relation to the other types of pledges, to offer effective legal constructions of enforcement of obligations while using article 339 of CC of RF.

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