Baker & McKenzie : Draft law on specifics of enforcement of financial obligations

Russian Government Considers Draft Law on “Specifics of Enforcement of Financial Obligations”.

The Government of the Russian Federation is considering a new draft law on “Specifics of Enforcement of Financial Obligations” submitted to it earlier by the Federal Service for Financial Markets. The draft legislation is aimed at establishing concrete features of enforcement of financial obligations involving the pledge of receivables on money obligations, and the pledge of receivables under bank account agreements (bank deposit agreements).

The draft law provides that financial obligations are to be secured with a pledge of receivables on money obligations or a pledge of receivables under a bank account agreement. Financial obligations here mean obligations where one of the parties is a financial organization, and obligations certified with securities or related to performance of obligations on securities.

To secure financial obligations the draft law envisages the possibility of the pledge of future receivables arising either from existing obligations or from future ones. The draft law also establishes requirements as to the contents and record keeping of pledge agreements, and defines the moment of creation of a pledge, the liabilities of the pledgor and rights of the pledgee.

Moreover, the draft law enables implementation of a pledge for receivables under a bank account agreement.

The pledge of receivables under a bank account agreement is to be used if a special separate pledge bank account is opened for the client.

For more information, please contact in Moscow: Vladimir Dragunov (+7 495 787 2700), Max Gutbrod (+7 495 787 2700), Mikhail Turetsky (+7 495 787 2700), David Scott (+7 495 787 2700), in St. Petersburg: Igor Gorchakov (+7 812 303 90 00).

 

 

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