To secure the debtor’s obligation to return the loan amount, a third party provided our client-lender with a vehicle as collateral – a BMW 640i XDRIVE car. The parties signed a pledge agreement, and the necessary certification actions were performed through the notary system.
Since the loan was not repaid, the pledgee applied to the Smolninsky District Court of St. Petersburg with a claim for foreclosure on the pledged car. The court granted the claim, indicating that in connection with the non-repayment of the loan, the lender is entitled to receive satisfaction of his claims from the value of the pledged car.
The pledgor appealed the decision to the appellate court, arguing that the court of first instance did not establish the initial sale price of the pledged item in its decision, which is mandatory for this category of cases. The St. Petersburg City Court, when considering the appeal, considered the arguments of the defendant to be untenable, as a result, the car was sold at auction, and the proceeds were used to repay the loan debt to our client.
