Law of Ukraine "On Hypothecation"

In this Law, the terms given below shall have the following meanings:

“Mortgage” – type of security of an obligation fulfillment with immoveable property that remains in possession of the mortgagor, whereby the mortgagee shall have the right – in case of default of the debtor on the main obligation secured by a mortgage – satisfy its claims at the expense of the mortgaged immovable property prior to other creditors of such debtor, per the procedure established by this Law.

“immovable property” (immovables) – land parcels and also the objects located thereon and inseparably linked thereto, whose displacement without disproportionate damage to their designated purpose is impossible. Legal regime of immovable property covers aircraft and sea-going craft, riverboats, spacecraft;


“main obligation” – a debtor’s obligation under loan, credit, purchase and sale, lease agreements, as well as an obligation arising on other grounds, whose performance is secured by mortgage;
“overlying mortgage” – transfer on mortgage of immoveable property, which has already been the subject of mortgage under a previous mortgage agreement;

“mortgagor” – a person that mortgages immoveable property to secure performance of his/her own obligations or other person’s obligations to the mortgagee. A debtor or property guarantor may be a mortgagor;

“property guarantor” – a person that mortgages immoveable property to secure obligation of the other person – a debtor;

“mortgagee” – a creditor on the main obligation.

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