This will allow reducing the borrower’s debt burden
The Independent Association of Banks of Ukraine proposes to cancel the regulation set forth in the legislation necessitating attestation of the mortgage over chattels by a notary public, which came into force after publishing the relevant law in July 2010, says the IABU’s letter to the Verkhovna Rada’s Committee dealing with finance and banking issues.
Up to then, notarial certification has been considered as the right not an obligation of banks and clients to follow, it was at their discretion to resolve whether to involve a notary to attest mortgage agreements, in view of expediency, or not.
In four years the fee for notarization of chattel mortgages for various types of borrowers has risen not once. Consequently, this fee has become a serious encumbrance for both borrowers and banking institutions.
Once the alterations said above are entered to the legislation, this will enable to lessen the debt burden hanging on borrowers, as well as boost car title loans and agricultural finance options that will entail, in turn, increase in domestic manufacturing.
