Chapter 7. Securities.
Article 142. Valuable paper.
1. A security is a document certifying, in compliance with the established form and mandatory requisites, property rights, the exercise or transfer of which is possible only upon its presentation.
With the transfer of a security, all the rights certified by it in total are transferred.
2. In the cases provided for by the law or in accordance with the procedure established by it, for the exercise and transfer of rights certified by a security, there is sufficient evidence of their fixation in a special register (ordinary or computerized).
Article 143. Types of securities.
Securities include: a government bond, a bond, a bill, a check, a deposit and savings certificate, a bank bearer savings book, a bill of lading, a share, privatization securities and other documents that are classified as valuable by the securities laws or papers.
Article 144. Requirements for a security.
1. Types of rights that are certified by securities, mandatory details of securities, requirements for the form of securities and other necessary requirements are determined by law or in accordance with the procedure established by it.
2. The absence of mandatory requisites of a security or the inconsistency of a security with the form established for it entails its insignificance.
Article 145. Subjects of rights certified by a security.
1. Rights certified by a security may belong to:
1) to the bearer of the security (bearer security);
2) the person named in the security (registered security);
3) to a person named in a security who can exercise these rights on his own or by order (order) another authorized person (order security).
2. The law may exclude the possibility of issuing securities of a certain type as registered securities, or as order securities, or as bearer securities.
Article 146. Transfer of rights in a security.
1. In order to transfer to another person the rights certified by a bearer security, it is sufficient to hand over the security to that person.
2. The rights certified by a registered security shall be transferred in the manner established for the assignment of claims (cession). In accordance with Article 390 of this Code, the person transferring the right to a security is responsible for the invalidity of the relevant requirement, but not for its non-performance.
3. Rights on the order security are transferred by making a transfer inscription on this paper - an endorsement. The endorser is responsible not only for the existence of the right, but also for its implementation.
An endorsement made on a security transfers all the rights certified by the security to the person to whom or to whose order the rights under the security are transferred - the endorsee. An endorsement may be blank (without indicating the person to whom the execution should be effected) or order (indicating the person to whom or the order of which the execution should be effected).
An endorsement may be limited only by the assignment to exercise the rights certified by the security, without transferring these rights to the endorsee (the entrusting endorsement). In this case, the endorsee acts as a representative.
Article 147. Execution of a security.
1. The person who issued the security and all those who endorsed it shall be liable jointly and severally to its rightful owner. In case of satisfaction of the requirement of the legal owner of the security about the fulfillment of the certified obligation by one or more persons from among those who have pledged before him for the security, they acquire the right of return claim (recourse) to other persons who have pledged under the security.
2. Refusal to fulfill an obligation certified by a security with reference to the absence of a basis for an obligation or its invalidity is not allowed.
The owner of a security who has discovered a forgery or forgery of a security is entitled to file with the person who transferred the security the requirement of proper performance of the obligation certified by the security and of compensation for losses.
Article 148. Recovery of a security.
Restoration of rights to lost bearer and order securities shall be made by the court in the manner prescribed by procedural legislation.
Article 149. Non-documentary securities.
1. In cases specified by law or in accordance with the procedure established by him, a person who has received a special license may fix the rights secured by a registered or order security, including in book-entry form (using electronic computer equipment, etc. ). To such a form of fixation of rights, the rules established for securities shall apply, unless otherwise following from the peculiarities of fixation.
A person who has recorded the right in a non-documentary form is obliged, at the request of the holder of the right, to issue him a document certifying the fixed right.
The rights certified by the specified fixation, the procedure for the official fixation of rights and right holders, the procedure for documentary confirmation of records and the procedure for conducting transactions with non-documentary securities are determined by law or in the procedure established by it.
2. Transactions with non-documentary securities can be performed only when referring to a person who officially makes recordings of rights. The transfer, granting and restriction of rights must be officially recorded by this person, who is responsible for maintaining the official records, ensuring their confidentiality, submitting the correct data on such records, and making official records about the operations performed.
<< Chapter 6 TKRF Back to table of contents Chapter 8 TKRF >>