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LAW OF TURKMENISTAN

of October 1, 1993 No. 862-XII

About pledge

(as amended on 19-05-2016)

Section I. General provisions

Article 1. Concept of pledge

Pledge - one of methods of ensuring obligation fulfillment in case of which the creditor - the pawnbroker acquires the privilege before other creditors to become widespread due to pledged property in case of non-execution by the debtor of the obligation behind the withdrawals provided by the current legislation of Turkmenistan.

Article 2. Legislation of Turkmenistan on pledge

1. The legislation of Turkmenistan on pledge is based on the Constitution of Turkmenistan and consists of this Law and other regulatory legal acts of Turkmenistan governing the mortgage relations.

2. If the international treaty of Turkmenistan establishes other rules than provided by this Law, then rules of the international treaty are applied.

Article 3. Pledge subject

1. Any property which is not withdrawn from civil circulation (the company, the building, constructions, the equipment, other business assets, securities, money) on which according to the legislation of Turkmenistan the address of collection, and also property rights, intellectual property items is allowed can be subject of pledge.

2. The requirements having personal character cannot be subject of pledge.

3. The Cabinet of Ministers of Turkmenistan establishes the list of objects which owing to their historical, cultural or other value or for reasons of state security cannot be pledge subject.

4. The rights of the pawnbroker are made from its rights of the creditor in the obligation provided with pledge and their existence is depending on destiny of the obligation provided with pledge.

Article 4. Pledger and pawnbroker

1. Physical, legal entities and the state can be the pledger and the pawnbroker (the pledge agreement party).

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