DECREE OF THE PRESIDENT OF

THE REPUBLIC OF AZERBAIJAN

 

 

On approval of the “Rules on official registries of movable property, their operation and management”

 

 

With a view to instituting an integrated and holistic legal framework to govern the process of operating and managing of collateral registries, I hereby decree:

1. To approve the “Rules on official registries of movable property, their operation and management” (Annex 1) (attached).

2. To approve the “List on types of properties registered in official registries of movable property and administrative bodiescarrying out their registration” (Annex 2) (attached).[1]

3. To direct the Cabinet of Ministers of Azerbaijan to address matters arising in connection herewith.

4. This Decree shall take effect upon publication.

 

Ilham ALIYEV,

President, Republic of Azerbaijan

 

Baku city, April 11, 2017

          № 564

 

Approved by Presidential Decree No.564 of April 11, 2007

 

Annex 1

 

 

RULES

on official registries of movable property, their operation and management

 

I. GENERAL PROVISIONS

 

1.1. These Guidelines were developed pursuant to the Civil Code, the Mortgage Law and other laws of the Republic of Azerbaijan, and provide overall guidance on how official registries on movable property, irrespective of ownership form, (hereinafter referred to as registries) are composed, compiled, managed and operated.

1.2. Compiling, managing and operating registries implies entering, updating or removing data and information concerning any type of movable property, its origination (production), origination, encumbrance, transfer and termination of ownership and other property rights with respect to such property.

Data stored in a registry will be removed if the underlying property is destroyed or alienated on a permanent basis via relocation outside the Republic of Azerbaijan.

1.3. Registries  are maintained in the state language of the Republic of Azerbaijan.

1.4. Provisions may be incorporated in the laws that would govern the way registries are operated and managed.

1.5. Registries are compiled on paper and electronic carriers. Should there be any discrepancies between written and electronic records, the written records will have the precedence. Should there be any discrepancies between registry records and supporting documents for registration of titles, such documents will have the precedence.

1.6. The registry book will comprise folders containing sheets (removable only by tearing or cutting) covered with a hard title page. Upon each folder of the registry book, the numbers of the first and final sections and sheets within that folder will be impressed. The number of sections and sheets in each folder will be a continuation of the number of section and sheets of the preceding folder.

1.7. Electronic registries will be operated and managed in line with the Electronic Signature and Electronic Document Law and other applicable laws of Azerbaijan Republic. In this context, the following requirements must be met:

1.7.1. dependable arrangements on establishing reliable defence system must be put in place to ensure that data are properly processed, in particular, to keep data from being lost or illegally accessed;

1.7.2. data entry must be efficient, and data must remain intact and easily readable;

1.7.3. provisions must be made to ensure that it is possible to demonstrate evidentially that data has been entered, modified or removed.

1.8. Operation and management of a registry via electronic carrier implies in the same manner compiling and proper maintaining of lists of movable property , property titles and title holders, encumbrances, etc.

 

II. RULES ON OPERATION AND MANAGEMENT OF REGISTRIES

 

2.1. A registry will have a dedicated informative section for each movable property. The sections will be numbered in arabic numerals. Each section will specify the following information:

2.1.1. name, type and unique number(s) of the movable property (parts thereof);

2.1.2. details of the movable property owners and other relevant title holders;

2.1.3. details of supporting documents on ownership and other rights in relation to a movable property (with requisites of the documents);

2.1.4. details of supporting documents on encumbrance, transfer and termination of the rights on movable property (with requisites of the documents).

2.2. Registration of  a movable property in a registry is conducted based on the following supporting documents:

2.2.1. legally executed movable property contracts;

2.2.2. effective court orders;

2.2.3. other legal grounds.

2.3. Rights to movable property will be registered based on an application of property owners or other relevant title holders.

The form of an applicationwill specify the applicant’s full name, address, ID, if applicant is an individual, the company’s full name, address, if applicant is a legal entitiy, as well the request’s summary and supporting documents.

If an application is filed on behalf of the holder of rights, the underlying power of attorney must be notarized. An applicant legal entity’s application and power of attorney of its representative submitting the application  shall be ascertained with the legal entity’s official stamp. The individuals filing the request will produce an ID.

The application form and list of supporting documents thereof  are determined by the administrative bodies responsible for operating and managing the registries in compliance with these Rules and other legislative  documents.

2.4. Unless otherwise provided in the law, an application will be filed within 5 (five) business days from the origination (production) of a movable property, execution of a contract or encumbrance of rights with respect to such property.

2.5. Rights will be registered on a first come, first served basis.

2.6. The application journal (applications’ registry book) and folders containing supporting documents for registration of rights represent an integral part of the registry.

2.7. The application journal will specify the information on:

2.7.1. applicants, content of a request, movable property documents, right owners;

2.7.2. respective documents on registration of rights;

2.7.3. information obtained from the registry  in accordance with clauses 3.1 and 3.2 hereof, and the recipients of such information.

2.8. If an application and supporting documents are not found to have any inconsistencies, a registration entry will be made within 5 (five) business days, and a documentary proof of registration in the registry on movable property will be issued to the applicant in the manner prescribed by legislation. The timeframe may be extended up to 15 (fifteen) business days if additional examination is required in exceptional cases.

2.9. If the submitted documents are found to have any inconsistencies related to registration of movable property that do not constitute grounds for rejection of registration, the documents will be returned to the applicant with a requirement to rectify the inconsistencies within 5 (five) business days. All inconsistencies that do not constitute grounds for rejection must be identified simultaneously and formally communicated to the applicant for rectification.

2.10. Following rectification of all inconsistencies that do not constitute grounds for rejection and re-submission of documents, a registration entry will be made within 5 (five) business days, and a documentary proof of registration as identified by the existing laws will be issued to the applicant.

2.11. Registration of rights may be rejected if any of the following applies:

2.11.1. the right in question is not subject to registration under the laws;

2.11.2. the format and contents of documents not subject to notarization do not meet the  legislativerequirements;

2.11.3. the application is submitted by a person not legally eligible to apply for registration of rights;

2.11.4. the person that submitted the documentary evidence with regards to the movable property does not have the right of disposal with respect to the title to such property;

2.11.5. other cases as may be stipulated under the legislation.

2.12. If any inconsistencies are identified that warrant rejection, the applicant will be notified to this effect in writing within 5 (five) business days. The timeframe may be extended up to 15 (fifteen) business days if additional examination is required in exceptional cases.

2.13. Court-ordered registration of rights to a movable property will be conducted within a timeframe identified by the applicable laws.

2.14. State registration of a movable property’s mortgage will be conducted in compliance with the “Mortgage Law” of the Republic of Azerbaijan. [2]

 

III. RULES ON DATA REQUESTS FROM THE REGISTRIES

 

3.1. To get data from registries, legal entities and individuals must apply to the administrative bodies operating and managing the registries. The application will be supported with an ID for individuals, and for legal entities with a copy of the state registration certificate, and, if the request is filed by  a representative, the power of attorney confirming the authorities of the representative.[3]

3.2. Data requested (or a resolution on rejection of provision of the data) will be provided within 3 (three) business days upon registration of the data request. The data from the registry is provided in a form to be determined by the administrative body operating and managing the registry, indicating the document’s number and date, signed by the said body’s official, and stamped.

3.3. Data or resolution on rejection of provision of data will be served directly to the applicant or by mail.

3.4. Refusal on provision of information appliesin one of the following cases:

3.4.1. the information requested constitutes a state secret;

3.4.2. supporting documents are not submitted.

3.5. The Anti-Corruption Department under the Prosecutor General’s Office of the Republic of Azerbaijan has a real-time access to electronic data in  registries.[4]

 

IV. CHANGES AND CORRECTIONS

 

4.1. The administrative body operating and managing the registry will rectify any changes and technical errors made during registration in the registry-stored information that do not have any material or consequential effect on the concerned parties’ rights and interests within three days from detection or filing of an application to this effect by a concerned party.[5]

During registration of rights, concerned parties will be notified on removal of any such errors within 48 hours in writing.

4.2. During registration of rights, technical errors will be corrected or changes will be made only if there are gounds to believe that such actions would not damage or have any harmful impact on the legal owners or third parties or their legal interests. If the owner of the right or a third party objects, such corrections will be facilitated through a court order.

 

V. FINAL PROVISIONS

 

 5.1. Documents pertaining to each registered movable property will be maintained by the registering administrative body for a period stipulated under the legislation. The administrative body will be accountable for safe-keeping the documents.[6]

5.2. Officials of the registering administrative bodies will be held accountable under the law for failure to comply with registration guidelines.[7]

5.3. Applicants will be accountable under the law for the the accuracy of the documents and information contained therein..

5.4. Decisions of the administrative bodies carrying out registration of a movable prroperty and actions (or inaction) of their officials may be appealed through administrative and judicial proceedings.[8]

 

 


 

 

 

 

 

Approved by Presidential Decree No.564 of April 11, 2007

Annex 2

 

LIST

on types of properties registered in registered in official registries of movable property and administrative bodiescarrying out their registration

 

 

No.

Types of properties to be registered

Administrative bodies

1

2

3

1.

Service and civilian weapons

Ministry of Internal Affairs of the Republic of Azerbaijan

2.

Vehicles, trailers and semi-trailers owned by corporations or natural persons (other than the Armed Forces and other military units of the Republic of Azerbaijan) with an engine volume of 50 ccm or more, with maximum design speed above 50 kmh, of all types, makes and models

Ministry of Internal Affairs of the Republic of Azerbaijan

3.

Streetcars and trolleys

City and district (other than city district) governments

4.

Tractors, as well as forestry and agricultural vehicles as enumerated by the Cabinet of Ministers of the Republic of Azerbaijan

Ministry of Agriculture of the Republic of Azerbaijan

5.

Vehicles as enumerated by the Cabinet of Ministers of the Republic of Azerbaijan other than technological vehicles, as well as the vehicles identified under the Traffic Law of the Republic of Azerbaijan, Article 27, part II, paragraphs 1 and 3

Ministry of Emergency Management of the Republic of Azerbaijan

6.

Racing vehicles of individuals and legal entities

Ministry of Youth and Sport of the Republic of Azerbaijan

7.

Mechanical vehicles of the Armed Forces and other military units of the Republic of Azerbaijan

Ministry of Defence of the Republic of Azerbaijan

8.

Securities-backed movable properties

Financial Market Supervisory Authority of the Republic of Azerbaijan

9.

Vessels sailing under the National Flag of the Republic of Azerbaijan (other than small-scale vessels)[14]

Ministry of Transport, Communication and High Technologies of the Republic of Azerbaijan

10.

  Small-scale vessels

Ministry of Emergency Management of the Republic of Azerbaijan

11.

Railway transports

Ministry of Transport, Communication and High Technologies of the Republic of Azerbaijan

12.

Civil aviation aircraft

Ministry of Transport, Communication and High Technologies of the Republic of Azerbaijan

13.

Any general audience films (movie theaters, video theaters, video rentals, network and cable TV)

Ministry of Culture and Tourism of the Republic of Azerbaijan

14.

Library-stored published rarities and valuables, private collections

Ministry of Culture and Tourism of the Republic of Azerbaijan

15.

National archive fund’s records and documents, regardless of ownership form and safe-keeping location

National Archive Department of the Republic of Azerbaijan

16.

Movable historical and cultural relics and artifacts

Ministry of Culture and Tourism of the Republic of Azerbaijan

17.

Geodesy, topography and mapping materials and items

Ministry of Ecology and Natural Resources of the Republic of Azerbaijna (other than special (sectoral) geodesic materials and items), State Property Committee of the Republic of Azerbaijan (special (sectoral) geodesic materials and items)

 

 

Note: Movable properties listed under paragraphs 1, 8, 13 (other than private collections), 14, 15 and 16 of the Schedule above are not mortgageable.