Article 328. Pledge of things in a pawnshop of the Civil Code of the Republic of Kazakhstan
1. The acceptance of movable property intended for personal use by citizens as collateral for short-term microcredits can be carried out as an entrepreneurial activity by legal entities registered as pawnshops, whose activities are regulated by the legislation of the Republic of Kazakhstan on microfinance activities.
2. An agreement on the pledge of things in a pawnshop is executed by issuing a pawn ticket by the pawnshop and may contain a requirement for insurance of the pledged property, as well as the consent of the pledgor to the extrajudicial sale of the pledged object. Collateral insurance is provided at the expense of the pawnshop.
2-1. The agreement on the pledge of things in a pawnshop is terminated in connection with the sale of the pledged object or the transfer of such property to the property of the pledgee.
Upon the sale of the pledged property, as well as the transfer of such property to the ownership of the mortgagee, simultaneously with the termination of the agreement on the pledge of things in the pawnshop, the obligation of the borrower, who is also the mortgagor, and the agreement on the provision of microcredit are terminated.
The sale of the pledged object, as well as the transfer of such property to the ownership of the mortgagee under a pawnshop pledge agreement concluded to ensure the fulfillment of a microcredit agreement, with the exception of property whose pledge is subject to mandatory registration, may be carried out without bidding no earlier than one month after the expiration of the term of repayment of the microcredit, if there is such a condition in the contract about pawning things in a pawnshop.
The sale of the collateral subject to mandatory registration is carried out by holding public auctions no earlier than one month after the expiration of the term of repayment of the microcredit. In case of non-sale of the pledged item, which is subject to mandatory registration, at public auction within sixty calendar days from the date of the start of the auction, the pledged item becomes the property of the pawnshop.
The sale of the pledged item, as well as the transfer of such property to the ownership of the mortgagee under a pawnshop pledge agreement concluded to ensure the fulfillment of a microcredit agreement, are not allowed during the period when the mortgagee is considering the borrower's application for debt settlement in accordance with the procedure established by the Law of the Republic of Kazakhstan "On Microfinance Activities".
3. The pawnshop does not have the right to use and dispose of mortgaged items.
4. The pawnshop is responsible for the loss and damage of the pawned items, unless it proves that the loss or damage occurred due to force majeure.
5. Excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (effective from 01/01/2020).
6. The terms of the pawnshop pledge agreement, which restrict the rights of the pledgor in comparison with the rights granted to him by this Code, are not valid from the moment the agreement is concluded. Instead of such conditions, the relevant provisions of this Code apply.
7. Excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (effective from 01/01/2020).
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