The bill (Reg. No. 7539) amends the
Land Code of Ukraine and the Law "On Mortgage", whereby pawning of a land plot
(or the title to it) takes place, provided a land plot is assigned a cadastral
number. It is an essential condition of the mortgage agreement that a land plot
shall be assigned a cadastral number.
The authors of the bill stated that in view of the global financial crisis and its impact on the economy of Ukraine, the banks are discharging their debts by disposing the assets (including the land plots) pawned under the loan agreements. However, the People´s Deputies admitted to the numerous violations on part of the borrowing entities by performance of the financial operations connected with land resources. Adoption of the bill should prevent such violations.