What are pledge of property and mortgage of property? Distinguish between pledge of property and mortgage of property under the Civil Code 2022?
What is pledge of property?
Pursuant to the provisions of Article 309 of the Civil Code 2015 of Vietnam on pledge of property as follows:
Pledge of property
Pledge of property means the delivery by one party (hereinafter referred to as the pledgor) of property under its ownership to another party (hereinafter referred to as the pledgee) as security for the performance of an obligation.
According to that, pledge of property means the delivery by one party (hereinafter referred to as the pledgor) of property under its ownership to another party (hereinafter referred to as the pledgee) as security for the performance of an obligation.
What is a property mortgage?
As for the provisions on mortgage of property, Article 317 of the Civil Code 2015 of Vietnam provides for the mortgage of property specifically as follows:
Mortgage of property
1. Mortgage of property means the use by one party (hereinafter referred to as the mortgagor) of property under the ownership of the obligor as security for the performance of an obligation to the other party (hereinafter referred to as the mortgagee) without transferring such property to the mortgagee.
2. The mortgaged property shall be held by the mortgagor. The parties may agree to deliver the mortgaged property to a third person to hold.
According to that, mortgage of property means the use by one party (hereinafter referred to as the mortgagor) of property under the ownership of the obligor as security for the performance of an obligation to the other party (hereinafter referred to as the mortgagee) without transferring such property to the mortgagee.
What are pledge of property and mortgage of property? Distinguish between pledge of property and mortgage of property under the Civil Code 2022?
What are the similarities between pledge of property and mortgage of property?
- In terms of form: Agreement on pledge or mortgage of property between the parties is made into a written contract.
- Regarding the validity of the pledge and mortgage agreement: Effective from the time of signing, unless otherwise agreed or otherwise provided by law.
- Time to terminate the pledge or mortgage agreement:
Termination of pledge or mortgage agreement in 4 specific cases as follows:
+ The obligation secured by the pledge/mortgage terminates;
+ The pledge/mortgage of the property is canceled or replaced by another security measure;
+ The mortgaged/mortgaged property has been handled;
+ As agreed by the parties.
What are the differences between pledge of property and mortgage of property?
Criteria | Pledge of property | Mortgage of property |
Legal grounds | Subsection 2 of the Civil Code 2015 | Subsection 3 of the Civil Code 2015 |
Definition | Pledge of property means the delivery by one party (hereinafter referred to as the pledgor) of property under its ownership to another party (hereinafter referred to as the pledgee) as security for the performance of an obligation. | Mortgage of property means the use by one party (hereinafter referred to as the mortgagor) of property under the ownership of the obligor as security for the performance of an obligation to the other party (hereinafter referred to as the mortgagee) without transferring such property to the mortgagee. |
Transfer of property | Yes | No |
Subject | Pledgor, pledgee | Mortgagor, mortgagee, a third party holding the mortgaged property |
Property | Movables, valuable papers such as bonds, stocks, etc. | Real estate, movables, property rights |
Return of property | Where a pledge of property is terminated, the pledged property and documents evidencing the ownership rights with respect to the property shall be returned to the pledgor. Any yield and income derived from the pledged property shall also be returned to the pledgor, unless otherwise agreed. | The mortgagee returns the papers to the mortgagor after terminating the mortgage, in case the parties agree that the mortgagee keeps the papers related to the mortgaged property. |
Effectiveness against third parties | Pledge of property shall take effect against third party from the time at which the pledgee keeps the pledged property. If an immovable property is the subject of pledge as prescribed in law, the pledge on immovable property shall take effect against third party from the time of registration. | The mortgage of property shall take effect against third party from the time of registration. |
According to current regulations, there is no relevant provision on Civil Code 2022, so your question about "What are the similarities of pledge of property and mortgage of property under the Civil Code 2022?" will apply in accordance with the provisions of the Civil Code 2015.
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