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LAW OF THE REPUBLIC OF ARMENIA

of July 14, 2011 No. ZR-233

About modification of the Civil code of the Republic of Armenia

Accepted by National Assembly of the Republic of Armenia on June 23, 2011

Article 1. In the second offer of Article 233 of the Civil code of the Republic of Armenia of May 5, 1998 (further – the Code) the words "expense recovery of the pawnbroker for content and safety of pledged property and expenses on collection" shall be replaced with words "the storage expenses made or planned by the pawnbroker, content of pledged property, expenses according to the address on it of collection and on realization, including compensation of the amount of taxes in connection with realization of subject of pledge which the pawnbroker as the tax agent of the pledger shall pay".

Article 2. To state article 251 of the Code in the following edition:

"Article 251. Distribution of the sum realized from realization of pledged property

1. From the sum realized from realization of pledged property or from property value, the carried-over pawnbroker or person specified to them, after deduction from it of the amounts necessary for covering of expenses according to the address of collection on this property and on its realization, the requirements of the pawnbroker provided with pledge are met, and other amount is transferred to the pledger. The requirements of the pawnbroker which are not provided with pledge are satisfied from the amount (cost) provided by this Item in the general procedure established by this Code and other laws.

2. If the sum realized in case of realization of the pledged property, or property value which carried over the pawnbroker or person specified to them is insufficient for satisfaction of requirements of the pawnbroker, he has the right to receive the missing amount from other property of the debtor if the agreement does not provide other. At the same time the pawnbroker has no based on pledge by the privilege concerning this property.

3. In case the pledged property belonging to the citizen passed to bank (credit institution) – the pawnbroker on the property right, the pledged property in sense of this Article is considered implemented:

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