Regulatory Proposals from Natalia Dotsenko-Belous to Regulate the Issue and Circulation of Mortgage Bonds Approved by the Securities and Stock Market State Commission

The Expert Advisory Board of the Securities and Stock Market State Commission (SSMSC) has approved and recommended to adopt the Instructions for Mortgage Bond Completion and the Regulation on Mortgage Bond Transactions and amendments to a standard (model) form of the mortgage bond.

These improvements were developed by Mrs. Natalia Dotsenko-Belous, Senior Associate of the Real Estate Practice Group at Vasil Kisil & Partners Law Firm, who is a member of the Expert Advisory Board of the SSMSC, a recognized expert in construction financing, and a professional certificated by the SSMSC in asset management and securities trading.

According to Mrs. Dotsenko-Belous, the novelties introduced thereby will enable to regulate the circulation of mortgage bonds, simplify the procedure for issuing the mortgage bonds in respect of property under construction and enable their use by the State Mortgage Institution for bank refinancing purposes. Consequently, this instrument will enable to boost the mortgage market and increase residential real estate sales.


REFERENCE INFORMATION:

Mortgage Bond is a debt security certifying its holder’s absolute right to obtain the performance of the main obligation from the debtor provided that it is to be effected in monetary form and in the event of default on the main obligation – the right to foreclose on the mortgaged property.