käeandkinnituse

Käeandkinnitus refers to a type of collateral or security offered in Estonian law. It is a form of pledge where a debtor provides movable property to a creditor as a guarantee for the fulfillment of an obligation. This property remains in the possession of the debtor, but the creditor obtains a right to satisfy their claim from it if the debtor defaults.

The purpose of käeandkinnitus is to provide the creditor with a stronger position compared to an unsecured claim. The pledged property serves as a tangible asset that can be sold to recover the debt. Unlike a pledge where the property is handed over to the creditor, in käeandkinnitus, the debtor retains possession and use of the property, which can be advantageous in certain business contexts.

The establishment of a käeandkinnitus typically requires a written agreement between the debtor and the creditor, clearly specifying the pledged property and the obligation it secures. Registration in the relevant public register, such as the pledge register, may be necessary depending on the type of movable property. This registration provides public notice of the creditor's rights and helps to establish priority over other potential creditors.

If the debtor fails to fulfill their obligations, the creditor can, under specific legal conditions, initiate proceedings to sell the pledged property and use the proceeds to satisfy their claim. The specific rules and procedures governing käeandkinnitus are detailed in the Estonian Law of Obligations Act and other relevant legislation.