Borrowing money, you can face the risk of loan defaults. It is recommended to draw up a pledge agreement to provide a guarantee of the fulfillment of debt obligations to repay the loan. In this case, the property can be transferred to a mortgage or remain with the borrower during the entire term of the agreement.
Instructions
Step 1
Determine what kind of collateral the issued loan can provide in case of non-repayment. In this case, it is desirable that the value of the collateral was not less than the loan amount. You can determine the market value of the property yourself or use the services of appraisers, which are paid by the borrower.
Step 2
Choose a way to store the collateral. It can remain with the borrower or be pledged to the lender. In the first case, it is advisable to demand to insure the subject of the loan in case of damage to property and loss of its market value. In the second case, an act of acceptance and transfer of the mortgage is drawn up, which indicates the data of the parties, the basis, the pledge agreement and the name, quantity and value of the transferred property.
Step 3
Draw up a loan agreement, which specifies the passport details of the parties, the loan amount, repayment terms, interest rates and force majeure circumstances. It is also worth noting penalties and interest in case the borrower fails to fulfill its obligations within the established time frame.
Step 4
Draw up a pledge agreement. It is drawn up in writing and signed by the mortgagor and the mortgagee. If immovable property acts as a pledge, then the contract is notarized and registered with the relevant authorities. In the agreement, you must refer to the loan agreement, indicating the date of its preparation and the amount of the loan. Further, the subject of the pledge, its value, obligations assumed and terms, as well as the procedure for their implementation are noted. After that, it is indicated where the collateral will be located until the debt is repaid.
Step 5
Remember that collateral cannot be transferred to a lender. In case of default by the borrower of its obligations and non-payment of the debt on time, the collateral is sold and the loan is repaid from the funds received from the sale.
