Consent of the Pledgee Required for Taking Pledged Vehicle Out of the Country

Members of the 'My Step' faction of the National Assembly of Armenia have presented a bill that proposes to stipulate that the consent of the pledgee is necessary for crossing the national border with a pledged vehicle.

According to Armenpress, the draft law on amendments to the Civil Code of the Republic of Armenia was presented at a session of the National Assembly by co-author Arthur Davtyan.

Davtyan introduced the purpose of the initiative: “Currently, there are no restrictions imposed by law, and people can take pledged movable property out of the country, alienate it, which raises issues related to the repayment of their loans,” said Davtyan.

Thus, the draft establishes that the pledgee and the pledgor can specify in the pledge agreement the right or limitation for crossing the state border with the pledged vehicle by the pledgee or their authorized representative. The MP clarified that this means that the movable property must have the permission of the person to whom the movable property is pledged in order to cross the borders of the Republic of Armenia.

“Thus, they will have the right to cross the border if consent is available,” said the MP.