What is not taken into account when determining the amount of collateral. What affects the maximum loan amount secured by real estate? Loan secured by real estate
Each borrower has come across the concept of “loan collateral”, which has a direct impact on the terms of credit offered by the bank, and in some cases it is a mandatory requirement credit institution(e.g. real estate mortgage mortgage lending). Consider what it is, and what types of security are there?
Loan security. What it is?
Loan collateral is a guarantee that the borrower's obligations to repay the debt to the creditor will be fulfilled.
The Bank can reduce the risks of non-repayment of the debt by securing the loan with a pledge of movable or immovable property, as well as in other ways provided for by law or the agreement. In accordance with Article 33 of Federal Law No. 395-1-FZ, if the borrower violates obligations under the agreement, the bank has the right to demand early return loan and accrued interest on it, as well as to foreclose on the pledged property.
As a rule, the bank softens the conditions for those who provide such guarantees (on an unsecured loan, interest rates are usually higher).
Types of loan repayment security
All guarantees accepted by the bank as security for the repayment of a loan are divided into basic and additional.
The main ones include:
- real estate;
- movable property (transport, special equipment, etc.);
- equipment;
- farm animals;
- commodity-material assets (TMC).
Additional forms of loan security include:
- bank guarantee;
- rights of claim under the contract;
- bills and deposits;
- insurance;
- guarantee.
Also, additional types of security include property collateral associated with the encumbrance of antiques, jewelry and other valuables.
Let's take a closer look at each type of loan security.
Real estate
Any real estate object can be transferred to the bank as a pledge. Either living quarters, agricultural buildings or commercial areas. They are reluctant to lend secured by buildings that are the only housing of the borrower. Indeed, by virtue of the law, such premises cannot always be withdrawn and sold at auction.
When transferring real estate as collateral, the borrower must confirm his rights to own and dispose of this property. To do this, the bank provides:
- certificate of ownership;
- documents confirming the method of acquisition (contract of sale or exchange, certificate of inheritance, privatization or shared construction agreement, etc.);
- an extract from the unified state register of rights to real estate and transactions with it (EGRP).
Some banks may require additional documentation.
An agreement on the transfer of real estate as a pledge (another name is a mortgage agreement) must be registered with the Rosreestr authorities. From the moment of such registration, an encumbrance is imposed on the property. That is, a record appears in the certificate of ownership that the property is pledged, and from now on it cannot be sold, donated, or otherwise transferred to third parties.
Movable property
The most common example is the pledge of transport and agricultural machinery. In this case, it is necessary to provide the bank with the original TCP, a certificate of state registration of the vehicle and a contract of sale. At the same time, the vehicle passport will be kept in the bank along with the second copy throughout the entire loan period. loan agreement. He will be handed over only after the full fulfillment of all obligations.
Loan programs designed for legal entities, imply the introduction of own funds. As a rule, their size is 10-20%. As part of such a loan, the bank will need to bring the original or a certified copy of the payment order for the payment of this fee to the supplier.
Equipment, animals and goods and materials
The pledged equipment should not be stationary and unique, as this is an obstacle to its possible sale. In addition, all its components must be in working order, and the year of manufacture and degree of wear must comply with the requirements of a particular bank.
When pledging equipment financial institution will definitely require to provide inventory cards for each unit. This is necessary for its further identification. After all, the bank will periodically carry out on-site inspections of the collateral to ensure its availability and safety.
A number of requirements are also imposed on the pledge of agricultural livestock. The age of the animals should not exceed 5 years, and for the entire period of lending, the pledgor must provide them with normal conditions of detention. So, for example, one of the documents that are required in the framework of such lending is a certificate of availability of forage. In case of forced slaughter of one or more animals, the pledger must make an equivalent replacement of the pledge. That is, to transfer other cattle, identical in their characteristics, to the bank as a burden. To check the availability and safety of the pledge, inventory lists are used indicating the tag of each animal.
In order to ensure the repayment of the loan, financial institutions will also accept as collateral certain inventory items: raw materials, materials, goods for resale, etc. This type of assets has an increased risk of loss, therefore, it cannot be the only collateral. As a rule, the bank will require another guarantee to be provided to the goods and materials.
The documents confirming the ownership right here are contracts of sale, invoices and waybills. In the event of the necessary sale of the subject of pledge or its use in production activities, the pledgor must replenish the composition of the pledged property at the expense of goods and materials of equal value and characteristics.
Promissory note and deposit
A promissory note is a security (drawn up and legally certified), on which cash can be obtained from the person (drawer) who signed it without any problems. In addition, the holder of the bill can also receive interest on it (if such conditions are specified in the bill). That is why financial institutions love and are happy to accept these loans as collateral. securities.
A standard deposit in the same bank can also act as one of the additional forms of security. There is only one nuance here - the loan documentation will contain the borrower's order to write off the next payments at the expense of the deposit in case of insufficient funds in the loan account.
Rights of claim under the contract
This interim measure implies that the borrower transfers to the bank the right to demand payment under the contract from the buyer. Such a right is pledged at the residual value, i.e. all advance payments are deducted from the total amount of the contract.
A prerequisite for this form of collateral is the opening of a current account with a creditor bank, to which proceeds will be received.
bank guarantee
Here, a third party enters into credit relations - a bank that assumes certain obligations if the borrower is unable to repay the debt. This is a kind of guarantee issued by a financial institution.
To issue a bank guarantee, the borrower must provide the guarantor (guarantor) with a package of documents for the analysis of its financial and economic activities. You need to understand that not a single financial institution will simply vouch for you. To issue a guarantee document, the bank must be convinced of the reliability and solvency of the applicant.
Insurance
One of the additional guarantees of debt repayment is insurance. There are 2 design options:
1. Accident and job loss insurance. Applies to individuals who act as borrowers under a loan agreement.
2. Insurance of the collateral. The number of risks here includes damage to property by third parties, theft, theft, exposure to natural disasters and man-made disasters. The specific list of risks depends on the lending program and the form of collateral. For example, for car loans, the main condition is the registration of CASCO.
On the onset insured event The insurance company is responsible for paying the debt.
Guarantee
It is taken into account for any lending program. It may be familiar to us within the framework consumer lending, and guarantees of legal entities.
When applying for a business loan, the guarantors must be:
- Head of the organization;
- founders with a share in the authorized capital of more than 25%;
- companies that are part of a group of related companies.
In some cases, the guarantee of the municipality is possible. But this “works” if there is an appropriate agreement between the MO and the creditor bank.
Calculation of the security deposit
Any type of guarantee has its own cost, which is taken into account when calculating the adequacy of the security. Sufficient is the amount that is able to cover the principal debt, commissions on the loan and interest payments during the settlement period established by the bank. Typically, this period is 3 months. or six months.
For example, it is planned to conclude a loan agreement on the following conditions:
- loan amount - 250,000 rubles;
- rate - 19% per annum;
- commission for servicing a loan account - 1% per annum;
- billing period - 3 months (or 92 days).
We get the following:
250000+(19+1)/100*92/365*250000=250000+0.2*0.25*250000=262500 rub.
We have now calculated the so-called collateral value, which is taken into account when analyzing the adequacy of collateral.
But at full cost, no bank will take property as collateral. So-called correction factors are applied, which adjust the price of the collateral. This is done in order to eliminate possible risks associated with a decrease in the market value of the property or the impossibility of its rapid sale.
Each bank sets its own odds scale, but in the average version it looks like this:
- real estate - no more than 0.8;
- equipment - no more than 0.7;
- office equipment and personal valuables - no more than 0.6;
- vehicles - no more than 0.7;
- commodities and finished products- no more than 0.5.
These figures mean that things are accepted as collateral in an amount not exceeding 80% (70%, 60%, 50%, etc.) of the value.
By dividing the collateral value by the adjustment factor, we get the required market value of the collateral.
In our example, it will look like this:
- 262500 / 0.8 \u003d 328,125 rubles. (when pledging real estate);
- 262500 / 0.7 = 375,000 rubles. (in relation to equipment and vehicles);
- 262500 / 0.6 \u003d 437,500 rubles. (when transferring office equipment and personal valuables to the bank);
- 262500 / 0.5 \u003d 525,000 rubles. (with the pledge of goods and materials).
In simple terms, the market value of the collateral must be at least 328,125 rubles. (depending on the form of collateral), but at the same time, the collateral value of 262,500 rubles will appear in the loan documentation.
 |
As part of the judicial reform, in accordance with the federal constitutional laws "On the Judicial System of the Russian Federation" and "On Arbitration Courts in the Russian Federation", a unified judicial system has been created in the country. It also includes arbitration courts with federal status.
Arbitration courts are specialized courts for resolving property, commercial disputes between enterprises. They also consider the claims of entrepreneurs for the invalidation of acts of state bodies that violate their rights and legitimate interests. These are tax, land and other disputes arising from administrative, financial and other legal relations. Arbitration courts consider disputes involving foreign entrepreneurs.
Paragraph 1 of Art. 340 of the Civil Code Russian Federation(hereinafter - the Civil Code of the Russian Federation) it is established that the value of the subject of pledge is determined by agreement of the parties, unless otherwise provided by law. However, this condition is not stated in the law as essential. At the same time, paragraph 1 of Art. 9 of the Federal Law of July 16, 1998 No. 102-FZ “On Mortgage (Pledge of Real Estate)” (hereinafter referred to as the Federal Law “On Mortgage”), it is established that “the mortgage agreement must specify the subject of the mortgage, its assessment, essence, size and term of fulfillment of the obligation secured by the mortgage.”
Thus, the parties to pledge legal relations are required to indicate an agreed valuation of the pledged property. They can determine such an assessment both independently and by contacting an appraiser.
Participants of collateral relations determine the assessment on their own, having agreed it among themselves, or contact the appraiser and indicate in the task what type of value should be determined.
The law does not define on the basis of what criteria the assessment should be made. The method of coordinating the value of the subject of pledge is not prescribed by law. In practice, in the contract, the parties may indicate the value of the pledged property without specifying its type, they may indicate several types of value. Participants in pledge transactions can determine the value based on the report of an independent appraiser, or agree on their own, without involving a professional, guided by average market prices for similar property.
In paragraph 19 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated January 28, 2005. 90 “Overview of the Practice of Considering Disputes Related to a Mortgage Agreement by Arbitration Courts” states that if the parties indicate in the mortgage agreement several different valuations of the subject of mortgage, such an agreement cannot be considered not concluded if it is possible to establish which of the valuations is the one that the parties agreed on as an essential condition of the mortgage agreement.
In explanation of this recommendation of the Supreme Arbitration Court of the Russian Federation, the circumstances of one of the considered cases are given. As follows from the circumstances of the case, in the mortgage agreement the parties indicated three different valuations of the subject of mortgage: an valuation based on the conclusion of an independent appraiser, a collateral valuation, and an valuation based on the documents of the technical inventory body.
At the same time, the court found that the cost of the mortgaged building, according to the documents of the technical inventory body, was indicated by the parties in order to implement paragraph 4 of Art. 4 of the Law of the Russian Federation dated 09.12.1991 No. 2005-1 “On the State Duty”, which was in force at the time of the conclusion of the mortgage agreement. The appraisal given to the subject of mortgage by an independent appraiser involved by the parties, and which the parties indicated in the mortgage agreement, by virtue of Article 12 of the Federal Law “On Appraisal Activities in the Russian Federation”, was advisory in nature for them and was not mandatory.
Based on these circumstances, the court came to the conclusion that it is the mortgage valuation that is the valuation of the mortgaged building, which the parties, by agreement among themselves, gave to this subject of mortgage.
In paragraphs 1 and 2 of Article 340 of the Civil Code, as amended. Federal Law of December 21, 2013 367-FZ states that, unless otherwise provided by law, the value of the subject of pledge is determined by agreement of the parties. A change in the market value of the subject of pledge after the conclusion of a pledge agreement or the emergence of a pledge by virtue of the law is not a basis for changing or terminating the pledge, unless otherwise provided by law or the agreement.
The Federal Law “On Mortgage” mentions two types of real estate value: collateral value (paragraph 2 of article 67 states that “the mortgage value of a land plot pledged under a mortgage agreement is established by agreement between the mortgagor and the mortgagee”) and market value (paragraph 3 of article 9 states: “In the case of a pledge of unfinished construction of immovable property that is in state or municipal ownership, the market value of this property is assessed”). Nowhere else in the law does it indicate what type of property value must be indicated in the contract.
In Art. 3 of the Federal Law “On Appraisal Activities in the Russian Federation”, the market value of an appraisal object is defined as the most probable price at which this appraisal object can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and any extraordinary circumstances are not reflected in the value of the transaction price.
There is no legal definition of the collateral value of property. In science civil law Recently, the position has become widespread, according to which the term “collateral value” found in regulatory acts should be considered as a synonym for market value, which is also called “real”, “fair”, etc.
However, this position does not appear to be entirely correct. In the conditions of the current norms and in the absence of the concept of collateral value, of course, one should agree that since there is no collateral value in federal standards assessment, there are no instructions on how to determine the collateral value, we cannot consider it an independent type of value. At the same time, unlike the generally accepted synonyms for market value, the concept of "mortgage value" is used precisely to emphasize the special nature of the value of the pledged property, to oppose its market value. There are sufficient prerequisites for the allocation of collateral value as a type of value. In particular, law must proceed from the real needs of society. The practice of collateral relations shows that the value of the collateral, especially when selling property at auction, should not be determined on the basis of market value.
In their activities, banks actively operate with this controversial term. The concept of collateral value was formed from the Instruction Central Bank RF of June 30, 1997 No. 62a "On the procedure for the formation and use of a reserve for possible losses on loans", which has now become invalid, where the collateral value is defined as "the maximum amount of the client's obligations that this property can provide, this amount is determined as the market value of the collateral minus the costs of its implementation and possible discounts for the speed of implementation." Banking practice is guided in most cases by these criteria in order to determine the collateral value.
There is an economic need to define and use the term collateral value. Banks that are pledge holders use the collateral value, despite the fact that at present it is not recognized by law as an independent type of value and can be attributed to custom.
There are currently no special guidelines for the valuation of property transferred as collateral. Currently, in cases where property is subject to mandatory valuation, the contract for the purpose of collateral must establish the market value of the property.
Judicial practice shows that the assessment when foreclosing the subject of pledge should be determined based on the market value of the property. This position is supported by the Supreme Arbitration Court of the Russian Federation. In paragraph 6 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 15.01.1998. 26 “Overview of the Practice of Considering Disputes Related to the Application by Arbitration Courts of the Norms of the Civil Code of the Russian Federation on Pledge” states that in the event of a dispute between the pledgor and the pledgee, the initial selling price of the pledged property is set by the court based on the market price of this property. Despite the fact that these recommendations of the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation were developed before the adoption of the Federal Law "On Mortgage", they are currently in force, after 16 years.
In the absence of a dispute, the court will certainly indicate the price agreed in the contract. This provision indirectly indicates that the price in the contract must be the market price. In fact, if the contract does not specify a market price, but some other one, and none of the parties object to the sale of property at that price, then the court will have no reason to set the initial sale price on its own.
P. 2 Art. 348 of the Civil Code and clause 1 of article 54.1 of the Federal Law “On Mortgage” it is established that foreclosure on pledged property is not allowed if the violation of the obligation secured by the pledge committed by the debtor is insignificant and the amount of the pledgee’s claims is clearly disproportionate to the value of the pledged property.
The insignificance of the violation is assumed if, at the time the court decides to foreclose, the following conditions are simultaneously met: the amount of the unfulfilled obligation is less than five percent of the value of the subject of mortgage and the period of delay in the fulfillment of the obligation secured by the pledge is less than three months (clause 1, article 54.1 of the Federal Law "On Mortgage"). For pledge of movable property, sub. 1 p.2 art. 348 of the Civil Code of the Russian Federation provides that the violation of the obligation secured by a pledge is assumed to be insignificant and the amount of the pledgee's claims is clearly disproportionate to the value of the pledged property, if the amount of the unfulfilled obligation is less than five percent of the value of the pledged property and the period of delay in fulfilling the obligation secured by the pledge is less than three months. Unlike the Federal Law "On Mortgage", the Civil Code of the Russian Federation does not provide that the rule applies only to the judicial procedure for foreclosure.
Thus, the value of the collateral is related to the size of the debtor's unfulfilled obligation. The ability to foreclose on the subject of pledge depends on the ratio of the amount of debt to the value of the pledged property, as well as delay in performance.
At the same time, the said norms of Art. 348 of the Civil Code and Art. 54.1. The Federal Law “On Mortgage” does not clarify the issue being analyzed, since they are not specific enough. The uncertainty of the legal nature of the value specified in the pledge agreement remains. It is still not clear from what value five percent of the debt is calculated. How will this value be determined?
The lack of certainty in the norms contributes to the emergence of disputes: a dispute is possible in court about whether it is permissible in a particular situation to foreclose on property. The parties may offer different options for calculating five percent, interpreting the norms of the law in their favor: five percent of the value specified in the contract, or five percent of the market value at the time of the dispute. As practice shows, this cost can vary significantly.
In our opinion, the provisions of Art. 348 of the Civil Code and art. 54.1 of the Federal Law "On Mortgage" should be interpreted using the value specified in the pledge agreement. There are certain reasons for this. In particular, one should proceed from the general meaning of the norms and the will of the legislator. In our opinion, these norms should function not only for the court, but also for the parties to pledge legal relations even before going to court. Based on the requirements of the law, the parties must independently determine at what point and under what circumstances they have the right to foreclose on the subject of pledge in judicial order. That is, the task of the studied norms is to prevent premature appeal to the court under fear of refusal to satisfy the requirements.
Based on the analysis, we consider it necessary to single out an independent function of the collateral value: the collateral value in relation to the amount of the debt is a criterion for determining the possibility of foreclosure on the subject of collateral.
It is noteworthy that the original version of Art. 348 of the Civil Code of the Russian Federation did not assume any ratio of the value of the pledged property to the amount of debt under the main obligation. Therefore, such a ratio was determined only by the courts and was of an estimated nature, in connection with which, in some cases, the courts quite unexpectedly dismissed the claim.
One of the purposes of using the concept of "collateral value" is to determine the maximum amount of the debtor's monetary obligation to the creditor, and means the maximum amount that can be secured by the pledge of certain property.
At the same time, the term "collateral value" is currently provided only for a land plot in the Federal Law "On Mortgage". The term "collateral value" was contained in Article 3 of the Law of the City of Moscow dated February 11, 1998 No. 3 "On appraisal activity in the city of Moscow", according to which, for the purposes of this law, appraisal activity is understood as a set of relations of a legal, economic, organizational, technical and other nature as established in relation to objects of assessment of a market or other value (collateral, liquidation and other). This document became invalid in 2002 due to the adoption of the Law of the city of Moscow dated May 22, 2002 No. 28. The collateral value was specified in the law as a separate type of value, along with market and liquidation.
As can be seen, legal acts partly recognize the collateral value as a specific type of value. However, the collateral value is currently not an independent type of value. We believe that this gap, which causes controversy and uncertainty in the regulation of collateral relations, should be eliminated. To do this, in our opinion, the collateral value must become a really effective type of value, its place in the system of norms on collateral must be determined, it is necessary to formulate the concept of collateral value, determine the method for determining and changing it.
We propose the following concept of collateral value. Collateral value - the value of the subject of pledge, agreed by the parties in the pledge agreement and determining the maximum sum of money, which can be secured by a pledge of a particular object, as well as serving as a criterion for determining the possibility of foreclosure on the subject of pledge in relation to the amount of debt under the main contract and reflecting the most likely price at which the subject of pledge can be alienated by selling at a public auction or by selling it in another way agreed by the pledgor and the pledgee.
The collateral value is based on the market value. The mortgage legislation of the Russian Federation established that when foreclosing a mortgaged property, the initial sale price is set equal to eighty percent of the market value of the property, as determined in the appraiser's report (Item 4, Part 2, Article 54 of the Federal Law "On Mortgage").
Differentiated regulation of the initial sale price for judicial and extrajudicial foreclosure procedures that existed long time, the lack of reference to the type of value, the use of terms that are not defined by law lead to a decrease in the effectiveness of pledge operations.
Unfortunately, no steps have been taken in this direction so far. The amendments made to the Civil Code are devoted to other problems of collateral legal relations. Apparently, there is a lot of law-making work to be done in order to stabilize the pledge as a guarantee for the fulfillment of obligations.
The practice of collateral relations shows that it is the issue of value that needs to be given due attention, to develop a unified and logical structure of legal relations in the field of determining the value of pledged property in order to achieve maximum efficiency of collateral operations.
Bibliography
1. Civil Code of the Russian Federation (Part One) dated November 30, 1994 No. 51-FZ // Collection of Legislation of the Russian Federation. - 05.12.1994. - No. 32. - Art. 3301.
2. Law of the Russian Federation of 09.12.1991 No. 2005-1 “On the State Duty” // Collection of Legislation of the Russian Federation. - 01.01.1996. - No. 1. - Art. 19.
3. Law of the city of Moscow dated February 11, 1998 No. 3 “On appraisal activities in the city of Moscow” // Vedomosti of the Moscow Duma. - No. 5 (p. 39). – 1998.
4. Law of the City of Moscow No. 28 of May 22, 2002 “On recognizing as invalid the Law of the City of Moscow of February 11, 1998 No. 3 “On appraisal activities in the city of Moscow” and amending the Law of the City of Moscow of February 21, 2001 No. 6 “On bringing certain laws of the city of Moscow into line with the Budget Code of the Russian Federation” // Vedomosti of the Moscow City Duma. - No. 6 (Article 124). - 17.07.2002.
5. Instruction of the Central Bank of the Russian Federation of June 30, 1997 No. 62a “On the procedure for the formation and use of a reserve for possible losses on loans” // Bulletin of the Bank of Russia. - No. 91-92. - 12/31/1997.
6. Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 15.01.1998. No. 26 “Overview of the practice of considering disputes related to the application by arbitration courts of the norms of the Civil Code of the Russian Federation on pledge” // Bulletin of the Supreme Arbitration Court of the Russian Federation. - No. 3. - 1998.
7. Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated January 28, 2005 No. 90 “Overview of the practice of consideration by arbitration courts of disputes related to a mortgage agreement” // Bulletin of the Supreme Arbitration Court of the Russian Federation. - No. 4. - 2005.
8. Federal Law of July 16, 1998 No. 102-FZ “On Mortgage (Pledge of Real Estate)” // Collected Legislation of the Russian Federation. - 07/20/1998. - No. 29. - art. 3400.
9. Federal Law of July 29, 1998 No. 135-FZ “On Appraisal Activities in the Russian Federation” // Collected Legislation of the Russian Federation. - 03.08.1998. - No. 31. - art. 3813.
10. Federal Law No. 367-FZ of December 21, 2013 “On Amendments to Part One of the Civil Code of the Russian Federation and Recognition as Invalid of Certain Legislative Acts (Provisions of Legislative Acts) of the Russian Federation” // Collected Legislation of the Russian Federation. – 12/23/2013. -No. 51. - art. 6687.
11. Shevelev B. Is there a collateral value? // Accounting and banks. 2011. No. 10. S. 43 - 49.
One of the principles of lending is credit security. When granting a loan, the bank reduces its risks by drawing up collateral and guarantee agreements.
The collateral accepted by the bank for a loan is divided into basic and additional.
Basic provision should cover the entire amount of the borrower's obligations under the loan. The amount of liabilities is understood as the amount of the principal debt (the amount of the loan), as well as commissions and on it, calculated for a certain period. As a rule, the amount of payments is calculated for a quarter, or for two quarters (depending on the established frequency of interest payments), less often - for the entire period of the loan agreement.
Loan collateral - calculation example
You can calculate the amount yourself necessary provision on credit.
To do this, you need to determine the minimum estimated collateral value - this is the amount of the loan and payments, as indicated above. The estimated collateral value divided by the adjustment factor gives the market value of the collateral.
For example, with a loan amount of five hundred thousand rubles at eighteen percent per annum and a monthly commission of one percent per annum, the calculation will be as follows:
(18+1)/100/365*92*500,000+500,000) = 523,945.21 (rubles) is the required estimated collateral value of the loan collateral,
523,945.21/0.6=873,242.02 (rubles) minimum market value of collateral for the requested loan,
Where
(18+1)/100 – interest rate and monthly commission payment (in percent per annum),
365 is the number of days in a year,
92 - the number of days in the period (this value varies depending on the lending conditions of a particular bank),
5000000 - loan amount,
0.6 is a correction factor applied to a certain type of collateral (the value also varies depending on the type of collateral and lending conditions of a particular bank).
The commission for granting a loan is not taken into account, since the payment of this commission is carried out at a time before the first provision of credit funds to the borrower.
The main collateral for the loan
In the overwhelming majority of cases, property collateral acts as the main security for the borrower's obligations to the bank: real estate, equipment, transport.
The property pledged to the bank may belong to both the borrower himself and a third party. Pledgers may be individuals and organizations. If the mortgagor - a third party - is an organization, the bank will ask for a full package of documents (legal and financial documents) to analyze the legal capacity and solvency of the mortgagor. Financial condition the mortgagor must be stable, a necessary condition - the absence of negative net assets.
To accept property as collateral, it is necessary to confirm the property right of the mortgagor to this property. When pledging real estate - this is a certificate of ownership issued by the registration chamber and documents - the basis for the emergence of rights, for transport - PTS (passport vehicle) and a certificate of registration of the vehicle, and for equipment - confirmation of the fact of payment ( payment order or sales and cash receipts), confirmation of the fact of delivery (waybill, invoice and contract).
Less often, especially in times of crisis, inventory items are accepted as collateral: goods for resale or raw materials and materials owned by the borrower. Here the correction factor is more rigid, in most cases it is 0.5. In the case of storage of goods and materials on the territory of another organization, it is necessary to provide the bank with a storage agreement, to which an additional agreement will be concluded on allowing the admission of bank representatives to the territory where the collateral is stored to conduct ongoing checks on the availability of collateral.
The property pledge agreement, with the exception of the real estate pledge, comes into force from the moment of signing. Real estate pledge agreement (mortgage agreement) is subject to state registration.
As for the equipment accepted as collateral, it should not be stationary, unique, unparalleled, with a narrow scope. The property must have individual characteristics for the possibility of its identification (serial number, inventory number, etc.).
Transport, in turn, must be in good technical condition, on the move, not older than a certain age (as a rule, no more than ten to fifteen years).
Real estate accepted as a pledge are non-residential buildings, structures, land, unfinished (if the right of ownership is registered in accordance with the current legislation). Residential Properties accepted as collateral for a loan if no one is registered in it. Vessels (sea and air) can also serve as collateral. The bank must provide extracts from the registration service on the absence of encumbrance on the subject of collateral. If there are executed and registered lease agreements with third parties, the bank may require the conclusion of an additional agreement to the lease agreement on the termination of the lease agreement in the event that the bank forecloses on collateral.
For individual lending programs as collateral, the following can also be accepted as the main collateral:
- the right to claim under the contract,
- the guarantee of the municipality,
- bill of exchange (in most cases, Sberbank of the Russian Federation),
- bank guarantee,
- acquired property, etc.
Let us dwell briefly on each of these types of support.
Right to claim under a contract is accepted as collateral at the residual value of the contract, which is calculated as the difference between the amount of the contract and the advance payments made. This contract must specify the condition under which all transfers are made to the borrower's current account opened with the creditor bank, and amendments to the contract are not possible without the consent of the creditor bank. The loan repayment schedule is synchronized with the payment schedule under the contract; upon receipt of proceeds under the specified contract, it is written off as repayment of the borrower's debt to the bank.
Guarantee of the municipality (MO) is accepted as collateral if the bank has concluded an agreement with this MO and, in turn, the budget of the MO provides for the costs of providing guarantees for loans to enterprises and individual entrepreneurs.
A bill of exchange (in most cases, a bill of Sberbank of the Russian Federation) is one of the most interesting types of security. On the one hand, a promissory note is the same money, but placed in a security for a certain period of time with certain conditions (on a promissory note, the holder of a bill can receive interest from the bank). So, when providing a bill as collateral for a loan, the risks of the bank are reduced to the maximum and the requirements for the borrower are correspondingly more liberal, the bank's discount is much lower.
bank guarantee may serve as collateral if the creditor bank has set a risk limit on the issuing bank.If the acquired property acts as security, then an appropriate agreement must be signed between the bank and the seller. And in the sale and purchase agreement signed between the buyer (borrower) and the seller, a condition must be stipulated according to which, when the buyer (borrower) provides the seller with part of the payment (usually in the range of ten to twenty percent) and a bank guarantee letter (or a signed loan agreement, as an option), the ownership of the subject of the sale and purchase agreement passes to the buyer. Accordingly, the buyer (aka the borrower) draws up a pledge agreement with the bank, and the bank, in turn, transfers the remaining amount to the seller of the property on the secured loan.
Pledge- this is a way to secure obligations between the debtor (mortgagor) and the creditor (mortgagor). Collateral can be primary or secondary. In the first case, the pledge is transferred to the Bank as a pledge of the first order. If the borrower receives another loan (while refinancing the first loan) in another bank, the second stage pledge mechanism is triggered.
In this case, the contractual relationship between the first Bank and the second (re-mortgage) shall be concluded in writing, and the pledge shall be re-mortgaged to the second Bank. The creditor has a preferential right to pledge over other creditors. Relations between the parties are specified in the contract and are regulated by the Civil Code of the Russian Federation, the Federal Law "On Pledge", the Federal Law "On Mortgage".
Security is a set of conditions that gives the creditor confidence that the debt will be repaid. A loan can be secured by a pledge in the form of real estate, movable property and other highly liquid assets (securities, guarantees), as well as a surety. In addition to the basic loan collateral, in a number of countries there is a need to provide additional sources of income, because credit risk for the lender above.
Similarities and differences between collateral and security
Thus, “Pledge” and “Security” are two different concepts. However, in banking system there is a generalized expression - "Collateral", which implies the entire system contractual relations and obligations between debtor and creditor.
Loan security
There are types of loans in which a prerequisite is the provision of collateral. These include: commercial, mortgage, consumer, leasing, etc. For them, banks necessarily require a "hard" pledge. With car loans, student loans and other “light” loans, Banks generally accept purchased cars, inventory items, movable property, etc. as collateral. The pledger can be both the debtor himself and a third party, with his written permission.
Documentary component
After the loan is issued, a borrower package is formed. It contains collateral for a loan, agreements, and all other necessary documents in accordance with the “Lending Procedures”. Each unit of collateral in the Bank is accounted for as one off-balance sheet liability and is reflected in the corresponding accounting entry. In practice, the nominal value of 1 collateral is usually equal to 1 currency unit and is kept until the end of the loan term. At the end of the loan term, the off-balance sheet obligation is debited from the Bank's obligations and returned to the borrower against signature.
What happens if you don't pay the bank?
In case of non-fulfilment of obligations by the mortgagor specified in the agreement, the Bank delivers to the debtor a notice registered with the relevant authority on the commencement of the procedure for the enforcement of the pledge to pay off the debt. If the debtor does not “respond” to the Bank's actions in pre-trial proceedings, the Bank has the right to satisfy the obligation by selling the collateral.
The lawyer prepares a package of documents (correspondence between the debtor and the creditor), signed contracts are attached, the full amount of the debt is calculated and the case is submitted to the court. When the court decides in favor of the creditor, the debtor's property passes into the possession of the Bank and is sold at an open auction under the hammer. If the court decides in favor of the debtor, then this debtor can only be envied, because this is a very small percentage of all court cases.
Calculation of collateral and liabilities
In order to secure a loan as collateral, the loan officer first calculates the amount of the debtor's obligations:
loan amount + accrued % for the period according to the repayment schedule = loan obligations
Calculation example
To reinforce the above material, let's give 2 examples:
Example 1
You took out a loan:
As security for the loan, you provide 3 room apartment, with an approximate market price of 16,000,000 rubles. When calculating the collateral value of real estate, Banks apply a liquidity ratio of approximately 40-70% of the value of the property. In your case, let's say it will be 50%. Thus, your apartment will be evaluated by a Bank specialist in the amount of 8,000,000 rubles. Now let's calculate the amount of liabilities:
5,000,000 rubles * 11% * 5 years = 7,750,000 rubles.
Congratulations, your collateral fully covers your obligations and you have a great chance to get a loan.
Example 2
You are getting mortgage for the purchase of an apartment, the cost of which is 14,000,000 rubles.
The goal is to buy an apartment
In mortgage lending, the provision of the acquired real estate is required as collateral for the loan. What will be the calculation of collateral? Let's take a closer look here. The liquidity ratio will also be equal to 50%. Now look: If the purchased property costs 14,000,000 rubles, then after applying the coefficient, its assessed value as security will be equal to 7,000,000 rubles. And the amount of your obligations to the Bank is.
