Where are we    office@sw-partners.com +38(097) 946 65 81

High Specialized Court of Ukraine examined the case  №6-17645sv14 held that the depositor has the right to trade with the borrower of the bank, and the contract of assignment of claims for deposits which is signed by the parties shall be recognized by the authorities. Also by Deposit Guarantee Fund of individuals who are actively protesting against such agreements.

The scheme how it was done is simple: depositor had to find a client of the bank, which has to return to bank loan (according to the loan agreement, f.e. 500.000 UAH) and sign with him an agreement according to which the borrower agrees to pay to the depositor cash, app 450 000  UAH.   As a result, depositor receives the money of a illiquid bank - while all documents, all rights and obligations (loan and deposit) are concentrated after in ONE  hand - borrower! After borrower came to the bank and wrote there a declaration stating that he has depositors rights now and he asks to use savings amount in repayment of loan/mortgage. Bank accordingly denies and the borrower goes to court with a demand based on article 606 Civil code - to stop obligation to pay credit because of the connection of creditors and debtors in one person.

Link to the text of the decision: http://www.reyestr.court.gov.ua/Review/40698861

Its looks really being a fair deal!

But will courts follow such practice?

Seems to be not so sure!

Indeed, in accordance with Art. 360-7 of the Civil Procedural Code of Ukraine, only sentences of Supreme Court of Ukraine adopted on the results of the application for judicial review on the grounds of unequal application of the court (the courts) of cassation of the same substantive law, is binding on all subjects of authority and courts Ukraine. Courts are required to bring their practices into line with the decisions of the Supreme Court of Ukraine. In turn, the decision of the High Specialized Court of Ukraine does not have such features.

So, Supreme Court of Ukraine may overrule High Specialized Court of Ukraine in case of appellation and this sentence would be after obligationary for all such contracts!