Law No. 516-IG on mortgage.

Section 4 regards specific nature of mortgage (hypothecation) of land sites. It specifies that According to agreement on hypothecation, land sites in ownership may be given to mortgage. Hypothecation of land sites in collective ownership in residential areas, including those in towns, where in accordance with regulations on urban development it is prohibited to erect buildings and structures at specially protected territories and in zones, land sites intended for special use, belonging to state or municipal bodies, is not permitted. Other land sites - state and municipal property, except those which cannot be mortgaged according to land legislation, may be mortgaged based on agreement on hypothecation. Hypothecation of agricultural land falling under this Law is permitted only for realisation of commitments directly related to agricultural activity (art. 41). In accordance with land legislation hypothecation of part of land area is not permitted if this part cannot be used as a separate site, irrespective of its size and category (art. 42). Land site which is going to be mortgaged (hypothecation) must not be underestimated (art. 46).