Protection of the rights of the owner when pledging property

Property turnover is a rather complex phenomenon, for which actions related to the violation of rights and legal interests, the abuse of the right are not an exception. In particular, situations arise when property is pledged by an unauthorized person, which creates a situation in which the interests of the owner and the pledgee are opposed. The complexity of resolving these disputes is due to the fact that the legislator uses rather abstract categories that do not have a clear content and are interpreted ambiguously in science and law enforcement practice.

The purpose of the article is to form a theoretically substantiated approach to resolving disputes related to the protection of the owner’s rights when property is pledged by an unauthorized person. Achieving the purpose of the article is carried out by solving the following tasks: determining the signs indicating the disposal of property from the owner»s possession against his will, determining the approach in assessing the due diligence of the pledgee when concluding a pledge agreement.

The article was prepared using general scientific methods (systemic, logical) and special legal methods (comparative legal, formal legal).

The author comes to the conclusion that when property is pledged by an unauthorized person, first of all, the circumstances related to the disposal of the subject of pledge from the owner»s possession are subject to assessment, in the event that the property has retired against the will of the owner, the pledge is terminated, if the property has retired due to will of the owner, then due diligence on the part of the pledgee is subject to assessment, and depending on this fact, the issue of maintaining the pledge is decided. When assessing due diligence in relation to citizens, the author proposes to adhere to a single standard, while for business entities it should be differentiated depending on the field of activity, i. e. for an entity carrying out business activities in a certain area, an increased standard of due diligence is assumed if the assessment of due diligence is related to the activities carried out.