The institution of a pledge in civil law is considered one of the most popular ways of securing obligations. The holder of the property gains an advantage over other lenders. This means that if the debtor accepted several obligations and did not fulfill them, then the interests of the subject who accepted the pledge will be satisfied first. Civil law, however, has a few exceptions. In cases stipulated by law, such an advantage is not granted or a person can use it with certain restrictions. We further consider the concept and types of collateral in civil law. 
Benefits
The concept of pledge in civil law assumes that the claims of creditors on the obligations of the liquidated legal entity secured by property are satisfied at the expense of the amounts received from its sale in the first place. The exception is entities for which a debt has arisen before. The interests of the creditor-holder of property are satisfied primarily after the repayment of obligations to citizens:
- health or life by which the liquidated person has caused damage;
- requiring compensation for non-pecuniary damage, payment of salaries and benefits in accordance with the employment contract, remuneration to the authors of products of intellectual activity.
In accordance with the general rule, in the case of improper performance of obligations debtor, the value of the property is spent on repayment of the claims of the entity holding the pledge. In civil law, it is allowed to sell an object and send the proceeds to a creditor. The amount may be paid in full or in part.
Security (crib): civil law
The considered form of securing obligations has a number of distinctive features. Next, the main features that the pledge has will be considered. Crib:
- The holder’s civil law applies to other people's property.
- The legal capabilities of the subject follow the subject. This means that when the property is provided to the property, economic management to another person, a pledge (mortgage) continues to apply to it.
- Civil law on the subject comes from a basic obligation.
The productivity of the category under consideration from the relations it provides consists in the fact that it arises insofar as there is an initial agreement between the subjects. If there is no basic obligation, then no pledge appears. In civil law, the dependence of the category on the relationship is that it provides an exclusively valid requirement. In case of invalidity of the main obligation, the agreement on the transfer of the object to the creditor is recognized as the same. 
Important points
If the relationship is secured by real estate (mortgage), civil law claims arise in accordance with the agreement. This document is drawn up similarly to the main contract. In particular, if the agreement from which the relations proceed was notarized, then the pledge must go through the same procedure. In case of termination of the main obligation, the contract for its provision ceases to be valid.
Difference from other categories
The concept of collateral in civil law has specific characteristics. It must be distinguished from other categories of the same name that are used in other legislative branches (criminal procedure, customs, etc.). In addition, you should not mix it with existing customs. In the latter case, the use of the term “pledge” is often completely against the law.For example, when seizing identity documents. In this situation, there is no question of any collateral.
Sources of occurrence
How does a pledge appear? Civil law of the Russian Federation provides two sources of its occurrence. As a rule, securing obligations comes from the relevant contract. A pledge in Russian civil law may arise by force of law. However, practice shows that such cases are quite rare. At the same time, the relevant regulatory act must contain indications of:
- An obligation that is secured by a pledge.
- Subject of the agreement.
- Legal facts, the presence of which determines the automatic occurrence of a security obligation.
For a pledge arising by virtue of the law, rules similar to those provided for situations of its appearance under the contract shall apply, unless otherwise provided by regulatory enactments. 
Relationship Participants
Parties to a pledge in civil law:
- The holder of the property is the subject to whom the object providing the obligation is transferred - the creditor.
- A pledge holder is a person transferring material values. As a rule, it acts as the debtor for the original obligation. However, it is possible that a third party may be one. An example is the following task in civil law. A JSC pledge is property that belongs to the company and is transferred to secure the obligations of the production cooperative. The latter arose by virtue of an agreement with the bank. In this case, the cooperative acts as the debtor for the original obligation. The pledger, in accordance with the security agreement, is a third party - JSC. Also, the owner or entity conducting business operations may act as this participant. In the latter case, the transfer of real estate as a pledge is carried out with the consent of the rightful owner.
Subject of Agreement
Objects of the material world that a person possesses can be transferred as collateral in civil law and serve to satisfy his needs. The subject matter of the agreement may not be values taken out of circulation. These include, in particular:
- Some pesticides.
- Chemical weapon.
- Psychotropic compounds.
- Agrochemicals.
- Narcotic drugs, etc.
Key terms of the agreement
The contract is an integral condition for the emergence of relations to ensure obligations. An indication of the subject of a pledge is one of the key conditions in its execution. When transferring material value, its qualitative and quantitative characteristics are given, its name is given. According to the signs specified in the agreement, the thing is identified, stands out from the mass of her like. The subject of the contract may be certain legal possibilities of a property nature. In this case, it is necessary to indicate which specific rights are transferred, from what relations they proceed, what content they have, etc. Certain types of pledge in civil law are drawn up with the inclusion of other characteristics of the object in the contract. For example, for the construction, building, premises indicated, among other things, the address of the location of the object. When describing the subject, the rights to the thing must be described: economic management or property. In addition, the name of the authority that registered and registered this object (in the case of a mortgage, for example) is indicated. 
Grade subject
It is carried out in accordance with the agreement between the parties to the relationship. If municipal or state real estate is pledged, the assessment is made in accordance with the requirements or the procedure established by the Federal Law. If the object of construction in progress is transferred, the criterion will be the market value. The assessment of the land is carried out in accordance with relevant legislation.The collateral value will be established by agreement of the parties.
Other conditions
The contract should determine which of the parties will hold the pledged property. The agreement also describes the essence of the secured obligation. For example, a pledge arose from a contract of sale. The agreement, respectively, indicates the seller and buyer, as well as the object of the transaction. The contract should contain the size of the claim, which is provided by the property. In the case of sale, the price of the property will be the one. If the collateral has arisen from the loan agreement, then the agreement shall indicate the amount of the loan and interest, which are payable for the use of funds. Another prerequisite is the designation of the deadline for fulfilling the obligation. When buying and selling, it is the period of transferring the object to the new owner and payment of the purchase price, in case of a loan - the date of repayment of the principal and interest on it.
Explanation
The essence of the obligation, the size of the requirements and the time period for their fulfillment do not require a separate agreement. By their nature, they are the conditions of the original contract, therefore, no participant in the relationship can change them in any way. At the same time, these items cannot be considered optional. In accordance with the general procedure, the consent of participants under these conditions when concluding a pledge agreement is not required. But the occurrence of this agreement is determined by the existence of the obligation, which is provided by the property.
The latter, in turn, is carried out by agreement of the participants. In this regard, the essence of the obligation secured by the pledge must be indicated in the pledge agreement. In addition, upon reaching agreement on which specific requirement will be supported by the transfer of property, participants shall establish its value. For example, the agreement may establish that the collateral provides only the payment of the principal debt without interest. It should also be noted that claims against the debtor, expressed in the form of a foreclosure on the property transferred to them, can be made only if the obligation is not fulfilled within the established time frame. In this regard, the agreement must indicate the period within which the claims must be settled. In the absence of a contract under at least one of these conditions, it shall be deemed not concluded. 
Pawn of things in a pawnshop: civil law
These relationships are governed by Art. 358 Civil Code. In accordance with the norm, the acceptance of things as collateral can be carried out as part of entrepreneurial activity by special organizations - pawnshops. In such cases, as a rule, short-term obligations are provided. A loan agreement is issued with a security ticket. In this case, tangible assets are transferred to the creditor. They are movable objects. The host organization, in turn, is obliged to insure the transferred objects in full in the amount of their assessment in favor of the debtor at their own expense. It is set in accordance with the value of objects of the same kind and quality established in trade at the date of their transfer. The pawnshop cannot dispose of and use the pledged things. The lender is liable for damage and loss of the items transferred to him, if he cannot prove that the damage arose due to force majeure. If the debtor does not return the loan at the set time, the pawnshop at the end of the one-month period may sell the pledged thing in the manner prescribed by the relevant law.
Special relationship category
Nowadays, mortgage agreements are increasingly being concluded between entities. These relations are regulated by the Civil Code and Federal Law No. 102. According to paragraph 2 of Article 30 of the specified regulatory act, state registration of a mortgage is carried out simultaneously with the registration of property rights encumbered with a pledge, unless otherwise provided by law.For the procedure, it is necessary to provide a mortgage, a copy of it and the documents indicated in it as annexes in duplicate. Each record of the right, its encumbrance / restriction and transaction with the object is identified by the corresponding registration number. It occurs in the process of receiving documents and corresponds to incoming numbers. 
Features of the contract
The mortgage agreement must indicate the collateral value of the item. It is not the market value of the property. This is due to the fact that these indicators may not correspond to each other, since the security assessment is determined by agreement of the parties and participation in this expert is not required. This provision, however, does not apply to contracts whose subject matter is land. This is due to the fact that according to peremptory norm Art. 67 Federal Law No. 102, the collateral assessment of the allotment cannot be lower than its normative value. According to paragraph 1 of Art. 9 of this Law, the contract shall indicate the size, substance and period of fulfillment of the main obligation. In this case, the establishment of the amount of claims may be of some difficulty if the pledge provides a return of funds provided to the debtor as part of a credit line. In this situation, with the direct conclusion of the contract, the exact amount of the debt cannot be indicated. The condition for interest on the use of funds is more relevant to the substance of the obligation. If this clause is absent in both the loan and the mortgage agreement, the provisions of Art. 809 Civil Code. If interest is indicated in the loan agreement, but not in the security document, then the latter will be considered non-concluded.
Validity
A mortgage agreement must contain information about the period in which the secured obligation must be fulfilled. In the event of a dispute about whether this condition is met in the agreement or not, the courts are guided, as a rule, by the provisions of the Civil Code governing the calculation of periods. In particular, a period may be established either by indicating a calendar number or by establishing an inevitable event. For example, when considering a dispute, the court recognized that the condition that the mortgage agreement is valid until the debtor fully repays the loan obligations and the mortgagor by agreement cannot act as a condition on the period for repayment of claims. In accordance with Art. 190 Civil Code, the term determined in the framework of the transaction is determined by the calendar number or the end of the time period, calculated in years, months, days, weeks, hours. A period can be set by indicating an event that will inevitably occur. Considering this rule, the condition specified in the collateral agreement on the coincidence of the time period of the collateral validity with the term of the loan agreement does not act as a condition on the maturity of the claim. 
Additionally
The mortgage agreement must indicate the place of its execution. This is intended to be of value to the assignees. These entities may subsequently be able to assess which particular law can be considered applicable to the relationship between the original parties. Meanwhile, the courts believe that the condition for indicating the place of execution of the main contract will be deemed fulfilled when the agreement on securing the obligation contains the original requirement. And he, in turn, will include a corresponding paragraph.
