April 24, 2025
Legislative Amendments to the Regulation of Pledge Relations in the Republic of Uzbekistan
Legislative Amendments to the Regulation of Pledge Relations in the Republic of Uzbekistan.
- Definition of an “Extremely Insignificant” Breach of Obligations Secured by Pledge.
A breach of an obligation secured by a pledge is now considered extremely insignificant — and thus not grounds for enforcement of the pledge — if the following two conditions are met simultaneously:
- The outstanding obligation of the debtor amounts to less than 15% of the appraised value of the pledged property; and
- The delay in fulfilling the secured obligation does not exceed three consecutive months.
- Creditor’s Priority Right in Case of Seizure of Pledged Property.
If the pledged property is seized from the pledger by state authorities under a lawful procedure — for example, due to its involvement in a criminal or administrative offense — the pledgee retains the priority right to satisfy its claims from the value of the seized property.
- Amended Judicial Procedure for Loan Recovery (Amendments to Article 746¹ of the Civil Code).
If a creditor seeks early repayment of a loan through court proceedings — and no alternative procedure is agreed upon in the loan contract — the following two-step procedure now applies:
- Initial claim: the creditor must first apply to the court for the recovery of the overdue part of the debt that has not been repaid within the contractual term.
- Subsequent claim (if a debt remains unpaid): If, after this step, the borrower still fails to repay the overdue debt in full, the creditor may then apply to the court for early recovery of the entire remaining loan amount.
The table below summarizes the amendments made to the Law on Pledge.
