Article 3. The limits of securing the main obligation with a mortgage of the Real Estate Mortgage Act

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1. The mortgage ensures payment to the mortgagee of the principal amount of the debt under the mortgage loan agreement or other obligation in full or in part provided for by the mortgage agreement.

Unless otherwise provided by the agreement, the mortgage established as security for the mortgage loan agreement also ensures payment to the creditor of the remuneration (interest) due to him for the use of the loan.

2. Unless otherwise provided in the contract, the mortgage secures the mortgagee's claims to the extent that they are at the time of their satisfaction, including:

1) compensation for losses caused by non-fulfillment, delay or other improper fulfillment of the main obligation;

2) a penalty (fine, fine) for non-fulfillment, late fulfillment or other improper fulfillment of the basic obligation;

3) a penalty for the misuse of other people's money provided for by the basic obligation or legislative acts.

3. Mortgages also provide:

1) reimbursement of court costs and other expenses caused by foreclosure on mortgaged property;

2) reimbursement of expenses for the sale of the mortgage.

4. If the mortgage agreement specifies the total fixed amount of the mortgagee's claims secured by the mortgage, the debtor's obligations to the mortgagee in excess of this amount shall not be considered secured by the mortgage, except for the requirements provided for in paragraph 3 of this Article and Article 4 of this Law.

The Law of the Republic of Kazakhstan dated December 23, 1995.

President

Republic of Kazakhstan

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