Article 349. Procedure for foreclosure of pledged property.
1. The requirements of the pledgee (creditor) are satisfied from the value of the pledged real estate by a court decision. Satisfaction of the pledgee's requirement at the expense of the pledged immovable property without going to court is allowed on the basis of a notarized agreement of the pledgee with the pledger, entered into after the grounds for executing a foreclosure on the subject of pledge have arisen. Such an agreement may be invalidated by a court at the request of a person whose rights are violated by such an agreement. 2. The requirements of the pledgee are satisfied at the expense of the pledged movable property by the decision of the court, unless otherwise provided by agreement of the pledger with the pledgee. However, the subject of the pledge transferred to the pledgee may be levied in the manner prescribed by the pledge agreement, unless otherwise established by law. 3. A penalty on a pledged item may be imposed only by a court decision in cases where: 1) for the conclusion of a pledge agreement, the consent or permission of another person or body was required; 2) the subject of pledge is property with significant historical, artistic, or other cultural value for society; 3) the mortgagor is absent and it is impossible to establish his location.
References to other articles of chapter 23. Ensuring the fulfillment of obligations: