FEATURES OF APPLICATION OF CONTRACTUAL OBLIGATIONS

Abstract

Regarding the pledge of movable property, it should be noted that there are two of its varieties. Institution - when the property transferred to the mortgage is transferred by the mortgagor to the possession of the mortgagee. Solid mortgage - when the mortgaged property stays with the mortgagor under the lock and seal of the mortgagee. From the point of view of ensuring the safe storage of the collateral (and, accordingly, a more robust guarantee of repayment of the loan at the expense of a pledge), the institution is considered more effective. However, in terms of maintenance costs, insurance, and other overhead costs associated with the storage of property, a more robust and more secure collateral is more efficient and profitable. Therefore, it is better to use a solid mortgage, which in any case is insured. With regard to reliability and efficiency as a way of securing a contract, the mortgage of movable property is less attractive than a mortgage. This is primarily due to the nature of the pledge, which is movable property. That is, the range of possible dangers regarding this property is expanding (higher insurance costs, relatively high probability of loss). Also, the value of these items of collateral is often quite small compared to the size of the loan, which necessitates an increase in the number of items of collateral and, accordingly, greatly increases the cost of control and hold collateral. In addition, this property is more prone to changes in value (compared to mortgages) as a result of changes in the economy, changes in the market, changes in the preferences of potential buyers, which significantly reduces the attractiveness of mortgage movable property as a way to secure borrower obligations. A pledge of movable property is used for small volumes of short-term loans and is more operational (in most cases) when implementing an object that is an advantage in the given situation. In practical activity, when accepting a particular type of collateral (object) in the implementation of contractual obligations, two main issues are resolved: the liquidity of an object, such as the ability to implement rapidly and reliability, such as the ability to have a relatively unchanged market price and safety in terms of saving the cost of the object for a long time.