Tashkent, Uzbekistan (UzDaily.com) - The Head of State signed the Law of the Republic of Uzbekistan “On Amendments and Additions to Some Legislative Acts of the Republic of Uzbekistan in Connection with Strengthening Legal Protection of Creditors and Improving Mechanisms for Financing Entrepreneurship”, approved at the twenty-third plenary session of the Senate.

The law amended a number of laws. In particular, the Code of Criminal Procedure has been amended according to which, after a decision has been made on the seizure of property, an appropriate entry is made in the collateral registry, and after the cancellation of the seizure of property, it is deleted. These standards are unified with the requirements of the Law “On Collateral Register”.

Along with this, an addition is made to the Civil Code regarding the satisfaction of creditors' claims at the expense of the property of the debtor, provided as security for the performance of obligations. At the same time, a specific procedure is provided for determining the sequence of claims of creditors secured by their property and other property rights, in accordance with best international legislative practice, as well as recommendations adopted by the UN Commission on International Trade Law.

The law dramatically improves the procedure for the sale of mortgaged property. At the same time, it is possible to realize the mortgaged property aimed at extrajudicial collection at auction, direct bidding, lending, leasing, renting, selling property in parts or under other agreements not prohibited by law. The norm on the abolition of collateral in case of sale of pledged property is fixed.

The amendment to the Economic Procedural Code provides for the collection of property, which is the guarantee of the fulfillment of the obligations of the debtor.

In order to recognize the leased asset equal to the pledge and the agreement of property collateral, the Law on Leasing has been amended and supplemented. The main goal of the Law is to create a unified legal order for all types of collateral covering such areas as collateral, leasing, sale of property while retaining the right to property, mediation, and seizure of property. This approach enables creditors and debtors to establish their legal relations, which will ultimately serve the country's economic development.