What are the types of pledge?

Possessory pledge, arising by transfer of the item, and registered pledge, created by a written transaction and registration in the registry.

What is the scope of the pledge?

The claim, interest and penalties, plus maintenance, court and realization costs; fruits as well, unless otherwise agreed.

When is the pledge certificate issued?

Within two weeks of the pledgee's written demand upon the debtor's default, if the transaction contains the agreement required by law.

How are securities pledged?

According to the rules for their acquisition; dematerialized securities under the law on their possession.

What is a pledge certificate?

An enforcement act — issued after non-performance within two weeks of the demand.

Security Documentation in Georgia

Types of Pledge and Its Scope

Proper documentation of security begins with determining the type of pledge. The law distinguishes possessory and registered pledge, and this choice determines which documents and formalities are required. The pledge secures the claim and the accessory rights connected with it — including interest and penalties — as well as the costs of maintaining, litigating and realizing the property, unless otherwise provided by law or agreement. The pledge right also extends to fruits received from the pledged item unless the parties agree otherwise, which means the documentation should expressly clarify whether fruits are covered.