Investment Projects Financing

Requirements to the collateral

Any liquidation property, including items of property and rights of ownership (claims), except for the property withdrawn from commerce, claims indissolubly related to a personality of a creditor, in particular claims regarding alimony payments, compensation for harm inflicted to life or health, or other rights, assignment whereof to another person is forbidden by the law, may be deemed as a subject of a pledge.

Including:

  • buildings and facilities, construction whereof has been completed (being under major repairs);
  • buildings, construction (reconstruction) whereof has not been completed;
  • real estate to be delivered to the pledger in the future and which is not considered constructed at the moment of conclusion of the pledge agreement;
  • equipment and transport vehicles;
  • goods for sale;
  • enterprise or other asset complexes as a whole;
  • rights of ownership (claims) for acceptance of the property subsequent upon obligations, including cash assets (proceeds in cash, rent, lease payments, etc.);
  • work stock and productive livestock of the main herd.

The Development Bank is not included into the list of entities, which may be deemed as pledge holders of land plots being in private ownership, leasehold interest for the land plots being a subject of the mortgage, pursuant to Decree No.276 of the President of the Republic of Belarus as of June 2, 2009 (amended as of August 3, 2010) "On certain issues of land plot mortgage and recognition of several decrees of the President of the Republic of Belarus as invalid".

Rights of the pledge holder under agreements, where a subject of pledge includes the leasehold interest for land plots, as well as the real estate located at the land plot, belonging to the pledger on a leasehold basis, cannot be transferred to Development Bank accordingly prior to introduction of amendments into the applicable legislation.

Appraisal of the property proposed for pledge is obligatory and may be independent or internal.

Appraisal result is defined net of value-added tax.

Periods of validity of the appraisal make 6 months from the date, when the estimation was made.
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Internal and independent appraisals of the property subject to pledge, are made according to Decree No. 615 of the President of the Republic of Belarus "On appraisal activity in the Republic of Belarus" as of October 13, 2006, Resolution No. 562 of the Council of Ministers of the Republic of Belarus "On methods of cost estimating of objects of civil law rights upon handling of certain types of transactions with them and (or) other legally significant actions" as of May 7, 2007.

In order to execute a pledge agreement, documents, which allow identifying every subject of a pledge, defining its affiliation to a pledger and liquidity, should be submitted to the Development Bank.

Documents, which confirm the right of ownership (economic management or operational management) for a property subject to pledge (including property of guarantors), should be submitted to the Development Bank with a letter of transmittal drawn up according to the rules of records management with an indication of all qualitative and quantitative characteristics of the proposed pledge in the letter taken into consideration in the course of its estimation.

Documents submitted to the Development Bank (copies of documents should be affixed with the seal (upon its availability) and signature of a manager of the pledger - legal entity, individual entrepreneur), required for examination of an issue on acceptance of property for pledge, as well as include certified copies of constituent documents (certificate of state registration of an individual entrepreneur) of the pledger according to the requirements set forth above (Clause 3 of the List of documents for granting of a credit).

1. List of documents according to buildings, and premises, construction whereof has been completed: 
  • purchase and sale agreement.
  • acceptance and delivery certificate
  • certificate of acceptance of a facility for operation.
  • technical specification (with floor plans).
  • certificate of state registration of formation, change, origination, transfer, termination, limitation (encumbrance) of rights of ownership (economic management, operational management) for permanent structure.
  • certificate of state registration of formation, change, origination, transfer, termination, limitation (encumbrance) of the right for temporary use of a land plot.
  • Extract from the registry book on the rights, restrictions (encumbrances) of rights for a real estate unit and a land plot.
  • Inventory account card of fixed assets (other corresponding document).
  • Lease agreement(s) for premises of a building (if premises are leased out).
  • Internal or independent cost estimation of property.
  • Expert examination of reliability of estimation according to legislative requirements.
  • Document, which certifies consent of an owner or an agency authorized by it for pledging of property, being at the pledger's disposal basing on the right of economic management (operational management) in cases provided by the legislation.?
  • Other documents containing information about the facility.

In case building (premise) is under major repairs, apart from the specified documents, it is needed to provide additionally:

  • Resolution of a local executive and regulatory authority regarding carrying out of major repairs. 
  • Conclusion of the state ecological expertise under the project.
  • Conclusion of the state non-departmental expertise under the project.
  • Design and estimate documentation: overall summary estimate, facility cost estimate(s).
2. List of documents related to buildings, construction (reconstruction) whereof has not been completed:
  • purchase and sale agreement (agreement for joint development etc.)
  • Document, which certifies consent of an owner or an agency authorized by it for pledging of property, being at the pledger's disposal basing on the right of economic management (operational management) in cases provided by the legislation.
  • Resolution of a local executive and regulatory authority regarding allocation of a land plot and permission for construction, and in case of equity construction – regarding structure of interest-holders or the right for their involvement.
  • certificate of state registration of formation, change, origination, transfer, termination, limitation (encumbrance) of the right for temporary use of a land plot.
  • Conclusion of the Committee (department) of architecture and urban development referring to coordination of the project.
  • Conclusion of the Committee (department) of architecture and urban development referring to summary master plan of utility facilities.
  • Conclusion of the state non-departmental expertise under the project.
  • Design and estimate documentation: overall summary estimate, facility cost estimate(s), plan for organization of construction (requested where appropriate).
  • Permit of a state construction supervision authority for execution of construction and installation works.
  • Internal or independent cost estimation of the building, construction (reconstruction) whereof has not been completed.
  • Expert examination of reliability of estimation according to legislative requirements.
3. List of documents referring to real estate to be delivered to the pledger in the future and which is not considered constructed at the moment of conclusion of the pledge agreement:
  • Copy of a resolution (instruction) of a local executive and regulatory authority regarding granting a permission to land users, landowners and owners of land plots under construction, facilities at the land plots allocated to them.
  • certificate of state registration of formation, change, origination, transfer, termination, limitation (encumbrance) of the right for temporary use of a land plot.
  • Extract from the registry book on the rights, restrictions (encumbrances) of rights for a land plot.
  • Design and estimate documentation: overall summary estimate, facility cost estimate(s), plan for organization of construction.
  • Copy of an order (instruction) of a customer, developer regarding approval of the design and estimate documentation.
  • Copy of a construction agreement (contract), copies of other documents as a result of execution whereof a right of ownership of the pledger for the real estate will be originated in the future.
  • Permit of a state construction supervision authority for execution of construction and installation works.
  • Internal or independent cost estimating of the property proposed for pledge, which will be delivered to the pledger in the future and which is not considered constructed at the moment of conclusion of the pledge agreement, as well as cost estimating of rights of claim under the construction agreement.
  • Other documents containing information about the facility.
4. List of documents related to equipment and transport vehicles:
  • Document, which certifies consent of an owner or an agency authorized by it for pledging of property, being at the pledger's disposal basing on the right of economic management or operational management in cases provided by the legislation or the articles of association of the pledger.
  • Certificate of registration and certificate of state technical inspection of transport vehicles.
  • Technical specification (operation manual).
  • Inventory account card of fixed assets (other corresponding document).
  • Internal or independent cost estimation of equipment and transport vehicles.
5. List of documents related to goods for sale:
  • Inventory of goods subject to pledge as a collateral for obligations.
  • Inventory of goods, which the subject of the pledge may be replaced with.
  • Extract from the pledge registry. 
  • Certificate of residual stock of goods for sale at the warehouse.
  • Internal or independent cost estimation of goods for sale.
6. List of documents related to enterprises or other asset complexes as a whole:
  • Deed of property inventory.
  • List of all debts (obligations) included into the structure of the enterprise with an indication of creditors, nature, amount and term of their claims.
  • Documents according to the above-stated clauses 1-5.
  • Extracts from the Uniform State Register of Real Estate, Rights thereto and Transactions therewith.
  • Independent cost estimation of the enterprise or asset complex as a whole.
  • Expert examination of reliability of estimation according to legislative requirements.
7. List of documents referring to rights of ownership (claims) for acceptance of the property subsequent upon obligations:
  • Agreement(s), contract(s), other grounds for origination of obligations.
  • Internal or independent cost estimation of rights of ownership (claims).

In the course of examination of an issue on pledge of a right of ownership (claim) for acceptance of the property subsequent upon the agreement and/or pledge of the same property with a view of non-admission of impossibility for ensuring performance of obligations under active banking operations from the moment of fulfillment of obligations on assignation (accordingly, termination of the right of ownership (claim)) until the moment of conclusion of the agreement for pledge of the property passed into the ownership (economic management), ensuring performance of obligations under active banking operation may be made particularly by means of:

  • Conclusion of an agreement for pledge of a right of ownership (claim) for acceptance of the property and an agreement for pledge of the same property, which the pledger (bank's debtor) will acquire in the future.
  • Conclusion of an agreement for pledge of a right of ownership (claim) for acceptance of the property by the debtor and conclusion of an agreement for pledge of the same property with a third party, which is obliged to transfer the property to the bank’s debtor according to the concluded agreement, or solely conclusion of the specified agreement for pledge of the property with a third party. Whereas:
  • According to Article 334 of the Civil Code of the Republic of Belarus, the right of pledge remains in force in the course of transfer of the right of ownership to the pledged property or the right of economic management by it from the pledger to another person as a result of compensated or gratuitous alienation of such property or in the procedure of universal legal succession.
  • According to Clause 2 of Article 338 of the Civil Code of the Republic of Belarus, goods for sale, alienated by the pledger, cease to be a subject of the pledge from the moment of their passing into the ownership, economic management or operational management of the purchaser.

In case of pledge of items of property or rights of ownership, which the pledger will acquire in the future (Clause 6 of Article 321 of the Civil Code of the Republic of Belarus), the right of pledge will be vested to the pledge holder from the moment of acquisition of the corresponding property by the pledger (vesting the right of ownership (claim) to the pledger).

In the course of examination of an issue on possibility for conclusion of an agreement for pledge of a right of ownership (claim) for acceptance of items of property subsequent upon the agreement, it should be taken into consideration that the purchaser's right of ownership for a belonging under the agreement originates from the moment of its transfer according to Clause 1 of Article 224 of the Civil Code of the Republic of Belarus, unless otherwise is provided by the legislation or the agreement.

8. List of documents related to work stock and productive livestock of the main herd:
  • Description of a facility (qualitative and quantitative characteristics) is specified.
  • Inventory register of work stock and productive livestock approved by a manager of an organization-pledger and (or) an inventory card of the account of fixed assets, containing data, which individually define a pledged property.
  • Contracts (agreements) and other documents (certificates of transfer of animals from one group to another), which confirm acquisition of property and right of ownership (right of economic management, operational management) of the pledger.
  • Internal or independent cost estimation of work stock and productive livestock of the main herd.

Acceptance for pledge of work stock and productive livestock of the main herd is possible in accordance with the procedure established by the legislative acts of the Republic of Belarus for pledge of goods for sale providing submission of the inventory register and specifying generic features of livestock (animal species, number of heads of cattle, weight, cost, etc.) according to the Decree No. 3 of the President of the Republic of Belarus "On certain issues of pledge of property" as of March 1, 2010.