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Article 300. The Bases for the Emergence of Pledge

1. Pledge shall arise by virtue of an agreement. Pledge shall arise also on the basis of legislative when the events indicated therein take place, provided the legislative acts specify what property is recognised as held under pledge and which obligations are secured.

2. The rules of this Code concerning the pledge, which arises by virtue of an agreement, shall appropriately apply to a pledge which arises on the basis of legislative acts, unless legislative acts stipulate otherwise.

Article 301. Pledgeable Items

amended by (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity; and

(12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".

1. Any property including objects and property rights (claims), except for the objects which are excluded from circulation (paragraph 2 of Article 116 of this Code), claims which are inseparably associated with the person of the creditor, in particular the claims of alimony, compensation for harm caused to life or health, and other rights the assignment of which to any other person is prohibited by legislative acts, may be pledged.

2. The right to pledge may be applied by agreement to the property which will come into ownership or under business authority of the pledger in the future.

3. Pledge of certain types of property, in particular the property of citizens upon which it is prohibited to make claims, may be restricted or prohibited by the legislative acts.

4. Funds which are subject to pledge shall be placed in a bank.

5. Pledge of securities of joint stock companies (including banks), and of any other entities, shall be carried out subject to legislation concerning securities.

Article 302. Claims Which Are Secured by Pledge

amended by (11) Law No. 154 of 11th July 1997 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Concerning Issues of Banking Activity.

1. Unless it is otherwise stipulated by the agreement or legislative acts, the pledge shall secure a claim in the volume which it has at the moment of the actual satisfaction, including remuneration (interest), and compensation of losses incurred by delay in the execution, damages (fine, penalty), the necessary expenses associated with the maintenance of the pledged property, and also the compensation for the costs associated with the collection.

2. Pledge may be established in respect to the claims which will arise in the future, provided the parties agree on the amount of such claims, which is secured by the pledge.

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