Law of Ukraine
"On Moratorium on Seizure of Property of Citizens of Ukraine Provided as Security for Foreign Currency Loans "
Date of entry into force:
June 7, 2014
The Law establishes that during its effective period:
- immovable residential property that is considered subject of a pledge under Article 4 of the Law of Ukraine "On Pledges" and/or subject of a mortgage under Article 5 of the Law of Ukraine "On Mortgage" cannot be forcibly seized (alienated without the owner's consent), if such property is used to secure the obligations of a citizen of Ukraine (borrower or property guarantor) under consumer loans provided to them by credit institutions – residents of Ukraine in a foreign currency, under the condition that: 1) such immovable residential property is used as the place of permanent residence of the borrower/property guarantor, or is a mortgaged construction in progress, provided that the borrower or the property guarantor owns no other immovable residential property; 2) total area of such immovable residential property (construction in progress of immovable residential property) does not exceed 140 sq. m for an apartment, or 250 sq. m for a residential house;
- other property (property rights) that, according to the legislation or the credit agreement, are subject to seizure from the above borrower due to the funds received by the seizing party from sale (reassessment) of the pledged (mortgaged) item – cannot be forcibly seized (alienated without the owner's consent);
- a credit institution cannot assign (sell, transfer) the above receivables or debt to (into ownership of) another person.
This Law shall become void on the day of entry into force of a law that will regulate the specifics of repayment of the principal amount of receivable expressed in a foreign currency, the procedure for offset (settlement) of the currency exchange rate arising in financial and/or tax accounting of creditors and borrowers, and the procedure for writing off penalties and fines that are (were) accrued on such principal amounts.