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Pledge of machinery

Pledge of machinery is a pledge of moveable property which is similar to a mortgage over separately identified chattels under English law. This is a so-called firm pledge. Lenders have found a pledge of moveable such as equipment (machinery) to be a useful form of security interest, particularly where the borrower is an owner of a plant with valuable equipment (which we assume is your case). No notary fees (for the notarization of a pledge agreement in front of a public notary) are payable on such pledge but careful consideration needs to be given as to whether such moveables may be considered under Uzbekistan law to have become immoveales by virtue of how they are fixed or installed. The primary test under Uzbekistan law is whether the moveable is separable from the land or in other words whether it can be moved without causing significant damage to it.



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