Bishkek May 8, 1996, # 15
CIVIL CODE OF THE KYRGYZ REPUBLIC
(As amended by the Laws of the Kyrgyz Republic of
April 29, 1997 # 29 and October 15, 1997 # 76)
SECTION II. OWNERSHIP RIGHT AND OTHER SUBSTANTIVE RIGHTS
Chapter 10. General Provisions
Chapter 11. Ownership Right And Other Material Rights To Residential Premises
Chapter 12. Acquisition Of Ownership Right
Chapter 13. Right Of Common Property
Chapter 14. Termination Of Ownership Rights
Chapter 15. Protection Of Ownership Right And Other Real Rights
SECTION II
OWNERSHIP RIGHT AND OTHER SUBSTANTIVE RIGHTS
Article 222. Definition and Content of Ownership Right
1. The ownership right is a right of an individual to possess, enjoy and dispose of property at his own discretion, recognized and protected by legislative acts.
2. The owner is given the right to possess, enjoy, and dispose of his property.
The right of possession is the legally secured opportunity to exercise an actual possession of property.
The right of enjoyment is a legally secured opportunity to extract useful natural qualities of the property, and to gain revenue from it. The revenue can be manifested by income, accession, fruit, increase of animals, and other forms.
The right of disposition is a legally secured opportunity to determine the future legal status of the property.
3. An owner is entitled to take any actions related to his property at his own discretion, which actions do not contradict the legislation and do not infringe other persons' rights and interests protected by law, including the right to transfer his own property to the ownership of other persons, to transfer the authority of possession, enjoyment and disposition of property to another person while remaining the owner, to pledge the property and otherwise encumber it, or to dispose of the property in other ways.
4. The ownership right is permanent. The ownership right can be compulsorily terminated only upon the grounds provided in this Code.
5. Unless otherwise provided by law or contract, an owner bears the burden of maintenance of his property, and may not shift this burden to a third person on a unilateral basis.
6. An owner bears the risk of accidental loss or accidental damage to property unless otherwise provided by law or contract.
Article 223. Subjects of Ownership Rights
1. Property may be under the ownership of citizens and legal entities, as well as under ownership of the state. Private and state property shall be recognized.
2. The particularities of acquisition and termination of the right of ownership, holding, enjoyment and disposition of the property, can be established only by law, subject to whether the property is owned by a citizen, legal entity, or the state.
The law shall define types of property which may be owned only by the state.
3. The rights of owners shall be protected equally.
Article 224. Ownership Rights of Citizens and Non-State Legal Entities
1. Any property may be owned by citizens and non-state legal entities, except for individual types of property that may not be owned by citizens and non-state legal entities, as provided by law.
2. The amount and value of property owned by citizens and non-state legal entities shall not be restricted, except in cases when such restrictions had been established by law for the purposes provided by point 2 of Article 3 of this Code.
3. Commercial and non-commercial organizations, except state-owned and municipal enterprises, as well as institutions funded by the owner, shall own the property that had been transferred to them by founders (participants, members) as investments, as well as the property which had been acquired by these legal entities on other grounds.
4. With respect to property belonging to an organization by the right of ownership, founders (participants, members) of a commercial organization shall have rights of obligation, as defined in the company's founding documents.
5. Public associations and religious organizations, and other public foundations shall own the property acquired by them, and can use it only to achieve the goals provided in the founding documents. The founders (participants, members) of such organizations shall lose the right of ownership on property transferred to the ownership of the organizations. In the event of liquidation, such property of the organization which remains after the recovery by obligees of their claims, shall be used for the purposes stated in the founding documents.
Article 225. The Right of State Property
1. The state may have ownership over any property necessary for implementation of its functions.
2. State property shall consist of the state treasury, and property attached to state-owned republican legal entities in accordance with legislative acts.
Money from the republican budget, gold stock, objects of exclusive state property, including lands, subsoils, water, air space, forests, flora and fauna, all natural resources, and other state property not attached to any state-owned legal entities, shall constitute the state treasury of the Kyrgyz Republic .
3. Property owned by the state is assigned to state enterprises by virtue of the right of business conduct and operative management, and to institutions by virtue of the right of operative management (Articles 230 and 231).
Article 226. Ownership Rights on Land, Subsoil and Other Natural Resources
Ownership rights on land, subsoil and other natural resources shall be determined by the Constitution of the Kyrgyz Republic , the Land Code and other legislation.
Article 227. Communal Ownership Right
1. A local community can own any property necessary for performance of its functions (communal ownership).
2. Communal ownership consists of the treasury of the local community and of property attached thereto by organs of local self-government and other legal entities.
Moneys from the budget of the local community and other communal property not attached to legal entities of the local community constitute the treasury of the local community.
3. Disposal and management of communal property is performed by an organ of self-government, which has the rights of a legal entity.
4. Property in communal ownership is attached to communal enterprises by the right of economic management, to institutions, by the right of operative management (Articles 230 and 231).
Article 228. Substantive Rights of Persons other than Owners
1. Along with ownership rights, the following rights shall be substantive rights:
- right of economic management (Article 229);
- right of operative management (Article 231);
- right of a life-long inherited possession of a land plot (Article 234);
- right of termless (permanent) use of a land plot (Article 236);
- right of restricted use of other person's real estate (easement) (Article 242);
- other substantive rights to the property of persons others than owners of this property in cases provided by law.
2. A person other than owner shall exercise his rights of possession and use of property within the limits established by the law, or by a contract entered into with the owner.
3. If not otherwise provided by law or by contract, a possessor of the property other than owner, may not dispose of his property and to appropriate the fruit, production and revenue derived from use of such property.
4. The transfer of ownership right to the property to another person shall not be grounds for termination of other substantive rights to this property.
5. Substantive rights of the persons other than owner shall be protected against violation of any person, according to procedures provided by Article 294 of this Code.
Article 229. Privatization of State Property
State-owned property can be transferred into private ownership by privatization thereof in cases and in compliance with procedures provided by the laws on privatization of state property.
Article 230. The Right of Economic Management
1. State-owned or communal enterprises which owns property on the right of economic management shall possess, enjoy and dispose of this property within the limits determined by this Code.
2. In accordance with the law, the owner of property under economic management shall resolve issues of establishment of the enterprise, determination of the subject and objectives of its activities, its restructuring and liquidation, shall appoint the director (leader of the enterprise), and exercise control over the proper use and maintenance of the property owned by the enterprise.
The owner shall be entitled to a part of the profit received from use of the property under economic management of the enterprise created by him.
3. The enterprise may not sell, lease or pledge immovable property owned by it by virtue of the right of economic management, contribute it as an investment (share) in the authorized capital of business companies and partnerships, or otherwise dispose of it without the owner's consent.
Except in cases established by legislation, the enterprise shall independently dispose of other property owned by virtue of economic management.
Article 231. The Right of Operative Management
1. If property is allocated to an institution on the right of operative management, the institution shall exercise the ownership right in respect to this property, to the extent of its enjoyment and disposal of this property within limits established by the law, and in accordance with the goals of its activities, and with the owner's directives and the designated purpose of the property.
2. The owner of property allocated to an institution on the right of operative management shall be entitled to take excess property, or property which is not used properly, and to dispose of it at his own discretion.
3. The institution shall be entitled to alienate or otherwise to dispose of the allocated property with the owner's consent. The procedure for distribution of the revenues of this institution shall be determined by the owner of the property.
4. The institution shall not be entitled to alienate or otherwise to dispose of the allocated property or of property acquired through funds allocated to it under the budget estimate. If in accordance with founding documents, the institution is granted the right to engage in revenue producing activities, the revenues derived from such activities, and the property acquired at the expense of such revenues, shall be directed toward independent management of the institution and shall be accounted for on a separate balance sheet.
Article 232. Use of Widely Accessible Objects of State and Communal Ownership
Citizens have right openly to use forests, reservoirs, roads and state-owned and municipal objects, which are widely accessible due to custom and developed practice.
The use of such objects can be restricted in compliance with legislation for the purpose of enforcement of public order and security, people' health and environment protection.
Article 233. Rights to Land Plots of Persons other than Owners of Land Plots
1. Land plots, and immovable property situated on such plots, can be transferred by their owners to other persons for a life-time inheritable possession, and for permanent or temporary enjoyment, including leasing.
2. A person other than owner of a land plot shall exercise his rights to possess and use the plot on the conditions and within the limits established by law or by contract with the owner.
3. If not otherwise provided by law or by contract, a possessor of a land plot other than the owner may not dispose of such land plot.
Article 234. The Right of Lifetime Inheritable Possession of Land Plot
The right of life-time inheritable possession of a land plot under state ownership shall be acquired by citizens on the grounds and in the manner provided by land legislation.
Article 235. Possession and Use of Land Plot by Virtue of Right of Life- Tim e Inheritable Possession
1. A citizen who has a right of life-time inheritable possession (possessor of a land plot) shall have the right of possession and use of the land plot transferred by inheritance.
2. If not otherwise stated in the conditions for the use of a land plot as provided by the law, the possessor of the land plot may erect a building, do construction on it and create other immovable property in which an ownership right may be acquired.
3. The possessor of a land plot may lease it out or transfer for gratuitous term use to other persons.
A sale of a land plot and performance of any other transactions by its possessor which entail or may entail alienation of the land plot shall not be allowed.
Article 236. Right of Termless (Permanent) Use of Land Plot
1. The right of termless (permanent) use of a land plot under state ownership may be granted to citizens and legal entities, based on the resolution of a body of state power, which is authorized to grant such land plots for the purposes of such enjoyment.
2. In case of the restructuring of a legal entity, its right of permanent enjoyment of a land plot shall be transferred in accordance with the procedure for succession.
Article 237. Possession and Enjoyment of Land on the Right of Termless (Permanent) Use
1. A person who has been granted a land plot for permanent use shall exercises the permanent possession and enjoyment of such plot within the limits established by legislation and by the deed on the granting of the plot for use.
2. Unless otherwise provided by the law, a person who has been granted a plot for permanent use may use the plot for the purposes it was granted for, including erection or creation in other ways of buildings, constructions and other immovable property. Buildings, constructions, and other immovable property created by the person for himself, shall be his property.
3. A person who had been granted a land plot for permanent use, may lease it, or transfer it for gratuitous term use, only with the consent of the owner of the plot.
Article 238. Term Use of Land Plot Based on Lease Conditions
The right of term use of a land plot based on lease conditions, shall be acquired and exercised by citizens and legal entities in accordance with the procedures and conditions provided by the land legislation.
Article 239. The Right of Owner of Immovable Property to Use Land Plot
1. The owner of a building, construction and other immovable property located on a land plot which belongs to another person, shall have the right to use the part of the land plot allocated by the land plot owner for such immovable property.
Unless other arises from the law, the deed granting a land plot which is a part of state or communal ownership, or a contract, the owner of the building or construction shall have a right of permanent use of that part of the land plot where such immovable property is located.
2. Upon transfer of ownership right to immovable property to another person, the transferee shall acquire the right to use the corresponding part of the land plot on the same conditions, and in the same volume, as the previous owner of the immovable property.
The transfer of ownership right to a land plot shall not serve as grounds for termination or amendment of the right of the owner of immovable property to use such land plot.
3. The owner of immovable property shall have a right to possess, enjoy and dispose of this property at his discretion, including demolition of the respective buildings and constructions, to the extent that it does not contradict the conditions regarding use of this plot, as established by law or by contract.
Article 240. Consequences of Forfeiture of Right to Use Land Plot by Owner of Immovable Property
1. Upon termination of the right to use a land plot granted to the owner of the immovable property located on such land plot (Article 238), the right to the immovable property left on the land plot by its owner shall be determined according to the agreement between the owner of the land plot and the owner of the corresponding immovable property.
2. In the absence of, or failure to arrive at, the agreement specified in point 1 of this Article, the consequences of termination of the right to use the land plot shall be determined by court, upon the demand of the owner of the land plot or of the owner of the immovable property.
The owner of the land plot may demand in court that upon termination of the right to use the land plot, the owner of the immovable property should vacate the land plot of this property and restore the land plot to its initial condition.
In cases when demolition of the building or construction located on the land plot is prohibited by law (residential houses, historical and cultural monuments, etc.) or cannot be exercised due to the obvious excess of the value of a building or construction in comparison to the value of the land plot allocated for it, and considering the grounds for termination of the right to use the land plot and upon the presentation of the appropriate claims by the parties, the court may recognize the right of the immovable property owner to acquire the land plot on which this property is located into his ownership, or the land plot owner's right for acquisition of the remaining property, or the right of the owner to establish conditions for use of the land plot by the immovable property owner for a new term.
Article 241. Transfer of Right for Land Plot In Case of Alienation of Buildings or Constructions Located Thereon
In case of transfer of an ownership right to a building or construction possessed by the owner of the land plot where this building or construction is located, the rights to the land plot determined by the agreement of the parties shall be transferred to the acquirer.
Unless otherwise provided by a contract on alienation of a building or construction, the acquirer shall obtain the right of ownership for that part of the land plot which is occupied by the building or construction, and is necessary for disposition of the plot.
Article 242. Right of Restricted Use of Other Person's Property (Easement)
1. The owner of immovable property (land plot, other immovable property) may claim for the right of restricted use (easement) from the owner of a neighboring land plot, and in cases of necessity from the owner of another land plot (hereinafter - neighboring plot).
An easement can be established for the purpose of providing access and passage through a neighboring plot, for laying and operation of electric transmission lines, communications and pipelines, providing water supply and land improvement, as well as other needs of the owner of real property, which cannot be ensured without establishment of the easement.
2. The encumbrance of a land plot with an easement shall not deprive the land plot owner of the right to possess, enjoy and dispose of this plot.
3. An easement shall be established by agreement between the person demanding the establishment of an easement and the neighboring plot owner, and shall be subject to registration as provided by the procedure for registering immovable property. In case of failure to reach an agreement, the dispute on establishment and terms of easement shall be resolved by the court, upon the motion of the person demanding establishment of the easement.
4. In compliance with terms and procedure, provided by points 1 and 3 of this Article, an easement can be established in the interests and by the demand of the person to whom a plot had been conferred with the right of lifetime inheritable possession or a right of permanent use.
5. The owner of a land plot encumbered by an easement may claim commensurate payment for use of the plot from persons in whose interests this easement had been established.
6. With respect to Articles 1-5 of this Article, buildings, constructions and other immovable property can be encumbered with an easement, if restricted use of such property is necessary irrespective of any relation to the use of the land plot.
Article 243. Retention of Easement upon Transfer of Rights to Immovable Property
1. An easement shall be retained in the event of the transfer of rights for immovable property encumbered by such easement to another person.
2. An easement cannot be an independent object of purchase, sale, or pledge and cannot in any way be transferred to persons other than owners of the immovable property for the use of which the easement was established.
Article 244. Termination of Easement
1. By the demand of the owner of a land plot encumbered by easement, such easement can be terminated due to a cessation of the reasons for which such easement had been established.
2. In cases when immovable property possessed by a citizen or legal entity cannot, owing to an encumbrance by virtue of an easement, be used in accordance with the designated purpose of the property, the owner may sue in court for the termination of the encumbrance on this property.
CHAPTER 11
OWNERSHIP RIGHT AND OTHER MATERIAL
RIGHTS TO RESIDENTIAL PREMISES
Article 245. Ownership of Residential House or Apartment
1. An owner shall exercise the right of possession, enjoyment and disposition of residential premises which belong to him in accordance with the designated purpose of such premises.
2. Residential premises shall be used for housing citizens.
A citizen who is an owner of residential premises can use it for his personal habitation apart from, or with, his family and other relatives.
Residential premises owned by citizens, legal entities or the state, can be leased by the owners to citizens or legal entities for habitation based on contract.
3. Location of industrial enterprises in residential premises shall not be allowed. Owners shall be allowed to locate enterprises, institutions, organizations and their subdivisions in their residential premises, after these premises are converted into non-residentia{F3}l premises. The conversion of residential premises into non-residential premises shall be exercised in accordance with the procedure determined by Housing Legislation.
Article 246. Apartment as Object of Ownership Right
Together with his premises used as an apartment, and the elements of household installed in these premises, the owner of the apartment in a multi-residence building also possesses a share in the ownership right for the common property of the building (Article 247).
Article 247. Common Property of Owners of Apartments in Multi-Apartment Building
1. The owners of apartments in a bloc of apartments possess as common shared property the basic constructions of the house, any mechanical, electrical, sanitary - sewerage equipment and other construction outside and within the apartments that serve more than one apartment.
The size of shares of the owners of apartments in the right of ownership for the common property of the bloc of apartments and the order of allocation of costs on maintenance and preservation of this property between the owners shall be defined in accordance with the housing legislation.
2. No owner of the apartments shall have a right to alienate his share of the ownership right to the common property of the bloc of apartments, or to take any other actions that lead to a transfer of this share apart from the ownership right to the apartments.
Article 248. Partnership of Owners of Housing (Condominium)
1. Owners of apartments may establish a partnership of apartments (housing) owners to arrange for utilization of the building, and to provide the conditions of use of the apartments and their common property.
2. A partnership of housing owners is a non-commercial organization, established and acting in accordance with legislation.
Article 249. Rights of Family Members of Owners of Residentin remises
1. Family members of the owner who reside in the residential premises belonging to the latter shall have a right to use the residential premises under the conditions provided by the housing legislation.
2. Any assignment of the ownership right to the dwelling house or apartments to another person shall be the ground for termination of the right of the former owner's family members to use the residential premises unless otherwise provided by the housing legislation.
Article 250. Termination of Ownership Right to Mismanaged Residential Premises
1. If the owner of the residential premises uses them for the wrong purpose, or systematically or considerably violates the rights and interests of the neighbors, or mismanages the residential premises, allowing for its destruction, the respective bodies or persons whose rights are violated may give notice to the owner regarding the necessity of eliminating the violations and if such violations entail the destruction of the premises, also to define an appropriate period of time during which the owner must repair the premises.
2. If the owner, even after notice, continues to violate the rights and interests of the neighbors or to use the residential premises for the wrong purposes, or fails to do required repairs without valid reason, the court may, upon an action of the relevant body or person whose rights are violated, order the sale of these residential premises through a public auction, with the proceeds to be distributed to the owner, less the costs of judgement enforcement.
CHAPTER 12
ACQUISITION OF OWNERSHIP RIGHT
Article 251. Basis for Acquisition of Ownership Right
1. The ownership right to property may be acquired on the basis of a contract on purchase - and-sale, exchange, gift or any other transaction on alienation of such property.
In case of an individual's death, the ownership right to the property shall be inherited by another person in accordance with the will or the law.
In case of restructuring of a legal entity, the ownership right to the property that had belonged to this legal entity shall be transferred to the legal entities which are the successors of the restructured legal entity (Article 93).
2. The ownership right to a new object produced or created by a person for himself in accordance with legislation shall be acquired by such person.
The ownership right to the fruits, production, or revenues obtained as a result of utilization of property shall be acquired on the basis of the principles provided by Article 29 of this Code.
3. In cases and according to the procedures stipulated by this Code, any person may acquire an ownership right to the property that is not owned by any owner, to property where the owner is unknown, or to property which the owner has abandoned, or to which he has lost the ownership right owing to other grounds.
4. A member of a housing, housing-constructing, dacha, garage or other consumer type cooperative, other persons that have the right to accumulate shares, or that have paid their share for the apartments, dacha, garage, or other premises in full, or other persons to whom premises have been granted by the cooperative for utilization, acquire the ownership right to said property.
Article 252. Establishment of Ownership Right to Newly-Created Immovable Property
The ownership right to a building, installations and other newly-created real estate subject to state registration shall be established from the moment of such registration.
Article 253. Processing
1. Unless otherwise provided by a contract, the ownership right to any new movable thing manufactured by a person by processing materials he does not own, shall be acquired by the owner of the materials.
However, in cases when the cost of processing substantially exceeds the cost of materials, the ownership right to a new thing shall be acquired by the person who has in good faith undertaken the processing for himself.
2. Unless otherwise provided by contract, the owner of materials who has acquired the ownership right to a thing manufactured from these materials, must reimburse the cost of processing to the person who has performed it, and should this person acquire the ownership right to the new thing, the latter must respectively reimburse the cost of materials to the owner thereof.
3. An owner of materials who has forfeited them as a result of careless actions of a person who had performed processing, may claim the transfer of the new thing into his ownership and indemnification of inflicted losses.
Article 254. Acquisition of Ownership to Things Generally Accessible for Collection
In cases when, in accordance with the law, or with the general permission given by an owner, or with local customs, fishing, the collection of berries, or the collection or extraction of other generally accessible things is allowed in woods, reservoirs, or other places, the ownership right to such things shall be acquired by the person who has collected or extracted them.
Article 255. Time of Commencement of Ownership Right with Acquirer under Contract
1. The ownership right of an acquirer of a thing under a contract shall arise from the moment of transfer thereof, unless otherwise provided by the legislation or the contract.
2. In cases where the contract on alienation of a property is subject to state registration, the ownership right shall arise from the moment of its registration.
Article 256. Transfer of Thing
1. A delivery of a thing to a new owner, as well as surrender to the carrier for transporting to an acquirer, or surrender to the post office for shipping to an acquirer of things alienated without an obligation to deliver, shall be recognized as a transfer.
A thing shall be considered delivered to the acquirer from the moment of its actual arrival into the possession of the acquirer or of any person designated by him.
2. In cases where a thing has already been in the possession of the acquirer by the moment of entering into the contract on alienation thereof , the thing shall be considered transferred to him commencing from that moment.
3. Transfer of a bill of lading or any other document for the forwarding of goods shall be equal to a transfer of a thing.
Article 257. Ownerless Things
1. Ownerless thing is a thing which has no owner or the owner of which is unknown or the owner of which has given up the ownership right to these things.
2. Unless excluded by the rules of this Code on acquisition of the ownership right to the abandoned property (Article 258), on a finding (Article 259), on stray animals (Article 262) and on treasure (Article 261), the ownership right to such ownerless property may be acquired by virtue of prescriptive acquisition (Article 265).
3. Ownerless immovable things shall be registered by the body responsible for the state registration of immovable property on the basis of a statement of the relevant state agency.
Upon expiration of three years period from the date of registration of ownerless immovable thing, the body authorized to govern state property may apply to a court and claim acknowledgment of this thing as transferred into state ownership.
Ownerless immovable thing which was not acknowledged by a court as transferred into state ownership may be reacquired by the owner who had abandoned it to own, use and dispose of, or it may be acquired into ownership by virtue of prescriptive acquisition (Article 265).
Article 258. Abandoned Movable Things
1. Movable things abandoned by its owner or in any other way left by him (abandoned things) with the purpose of giving up his ownership right (point 2 Article 280) may be appropriated by another person according to the procedures determined by point 2 of this Article.
2. Any person who owns, manages or uses a land plot, water reservoir or any other object where abandoned property is found, and the value of such abandoned property is obviously less than 5 minimal salaries, or such abandoned property consists of abandoned scrap-iron, industrial waste, cinders, lost floated timber, waste of extraction of minerals, etc., may take possession of such things, and start using them or take other actions that certify to his appropriation of such things.
Other abandoned things shall become the property of the person who has obtained them for possession, in case when they are acknowledged ownerless by the court on the petition of that person.
Article 259. Finding
1. A finder of a lost thing must immediately inform the person who has lost the thing or some other person that he knows has the right to receive the thing, and to return the found thing to such person.
If a thing has been found within some premises or some vehicle, it shall be subject to surrender to the person who represents the owner of the premises or the vehicle. The person to whom the thing has been surrendered, shall acquire the rights and bear the obligations of the person who has found the object.
2. If the identity or location of the person who has the right to demand the return of the found thing are unknown, the finder of the thing must inform the agency of internal affairs or the local self-governance agency about his finding.
3. The finder of an object shall have the right to keep it at his residence or hand it over for storage to the militia, or to the relevant government agency or the local self-governance agency.
4. The finder of a thing shall bear the responsibility for its forfeiture or damage only in the case of intentional or gross negligence, and only to the extent of the value of the thing.
5. If within three months after informing the militia or the local self-governance agency, the person authorized to receive the thing has not been identified and has not claimed his right to the thing from the person who has found the thing or from the militia or local self-governance agency, then the finder of the thing shall acquire the ownership right to the thing.
If the finder of the thing refuses to acquire the thing into his possession, it shall be taken into communal ownership.
Article 260. Reimbursement of Expenses Associated with Finding and Remuneration to Founder
1. A person who found and returned a thing to the person authorized to receive it shall be entitled to reimbursement of necessary expenses associated with storage, surrender or sale of the thing, as well as of expenses to find the person authorized to receive the thing, from such person, and in case of transfer of the thing into state ownership, from the relevant state body.
2. A finder shall have the right to demand a remuneration of up to twenty percent of the value of a found object from the person authorized to receive such object.
If a found document or other thing has value only for the person authorized to receive the thing, then the amount of the remuneration shall be defined by agreement with such person and, in case of failure to reach an agreement, by a court. In a case when a person authorized to demand the return of a found thing publicly promised a remuneration for the found thing, the remuneration shall be paid pursuant to the conditions of the public promise.
The finder of a thing shall have a right to retain the found thing until the remuneration is paid (Article 342), except for documents which may be used only by the person authorized to demand return thereof.
A right to remuneration shall not arise if the founder of the thing failed to declare the finding or else tried to conceal it.
Article 261. Treasure
1. Treasure, i.e., currency or any other valuables buried in the earth or hidden in any other way, whose owner cannot be identified or has lost any ownership right thereon by virtue of law, shall be owned in equal portions by those who have found the treasure and by the person who possesses the land plot, buildings, etc., within which, or in which the treasure was hidden, unless otherwise agreed upon between them. In case the treasure was found by someone that carried out excavating or searching for the valuables without consent from the owner of the land plot or any other property where the treasure was buried, this treasure must be given to the owner of the land plot or of any other property where the treasure was found.
2. In the event of finding a treasure referred to memorials of history or culture, it shall be subject to transfer into state ownership. In this case the owner of the land plot or any property within which the treasure has been found, and the finder of the treasure, shall be entitled to remuneration in the amount of 50% of the value of the treasure. The remuneration shall be shared by such people according to the rules provided by item 1 of this Article.
A finder of treasure referred to the memorials of history or culture may retain this property until payment of remuneration (Article 342).
Article 262. Stray Animals
1. Any one who has caught stray cattle or any stray animals must return them to the owner, and if the owner of the animals or his location is unknown, the finder must within three days from the moment of capture of such animals inform the organ of internal affairs or a local self-governance agency about the animals, and they will take measures to search for the owner.
2. During the time of the search for the owner of the animals, the animals may be kept and used by the person that has found them, or given to another person that has the required facilities to keep and use the animals. If requested by the person that has captured the stray animals, the organ of internal affairs or local self-governance agency may search for the person that has the facilities required to keep and use the animals and take the animals to such a person.
3. Any person that has caught any stray animals and a person that has received the animals to keep and to use shall be obliged to keep them properly and shall be liable for the death or injury of animals to the extent of the value of the animals.
Article 263. Acquisition of Ownership Right to Stray Animals
1. If the owner has not been found and has not claimed rights to stray cattle within three months of filling out a notice about the capture of stray cattle, the ownership right to these animals shall be transferred to the person who has possessed the animals for keeping and using.
In case such a person declines to own the animals that he has kept, the animals shall be taken into communal ownership and shall be used according to the procedures determined by the local self-governance agency.
2. In case the former owner of animals appears after they have been transferred into the ownership of another person, and in case there is evidence that the animals still have an affection to the ex-owner, or evidence of cruel or improper treatment of the animals on the part of the new owner, the former owner shall have a right to demand that the animals should be returned to him on conditions determined by an agreement with the new owner, or by court in the event the agreement is not achieved.
Article 264. Reimbursement of Expenses for Maintenance of Stray Animals and Remuneration for Finding Them
1. In the event any stray domestic animals are returned to the owner, the person who has captured the animals and the person who has been keeping and using the animals, shall be entitled to reimbursement of the necessary expenses related to the maintenance of the animals, crediting the benefits derived from utilization of the animals.
2. Any person who has captured stray domestic animals shall be entitled to request a remuneration from the owner in accordance with point 2 of Article 259 of this Code.
Article 265. Positive Prescription
1. An individual or a legal entity who is not the owner of the property but who has conscientiously, openly and continuously possessed certain immovable property as his own for 15 years and any other property for 5 years, will acquire rights of ownership on the property (positive prescription).
The ownership right to real estate and other property which a person has acquired as a result of positive prescription and which is subject to state registration, shall belong to the person as of the moment of such registration.
2. Prior to the time that a person who has been possessing property as his own has acquired the ownership right to the property by virtue of positive prescription, he has a right to protect his possessions against third parties other than the owners of the property, as well as against those who are not entitled to own property owing to other grounds provided by law or by agreement.
3. A person who refers to prescription of possession may add to the time of his possession the entire time during which the property was in the possession of the person of whom the current possessor is the legal successor.
4. The running of the time period for positive prescription concerning objects which may be demanded from the person possessing them according to Articles 288-290, 293 of the present code, begins not earlier than the expiration of the limitations period for commencing a lawsuit regarding such demands.
CHAPTER 13
RIGHT OF COMMON PROPERTY
Article 266. The Concepts and Grounds for the Emergence of Common Property
1. Property which belongs to two or several people belongs to them with the right of common ownership.
2. Property may be held in common ownership in such a way that the share of each of the owners in the ownership right is either defined (shared ownership) or not defined (joint ownership).
3. Common ownership of property is a shared ownership, except in cases when the law permits the establishment of joint ownership to this property.
4. Common ownership emerges when two or several people assume ownership of property which cannot be divided without changing the purpose of the property (indivisible things), or when a division of the property is prohibited by virtue of law.
Common ownership of divisible property may arise in cases provided by law or by contract.
5. Common property of people may achieve the status of shared ownership by an agreement of the participants in joint property, and in case of a failure to reach an agreement, by a decision of the court.
Article 267. Definition of the Shares in the Right of a Shared Ownership
1. If the size of the share of each participant in a shared ownership cannot be defined on the basis of the law and is not defined by an agreement among all of the participants, the shares are considered equal.
2. An agreement among all participants in a shared ownership may specify the procedures for determining and changing their shares depending on the contribution of each of them in the development, acquisition and increase of the common property.
3. In the event that a participant in a shared ownership has at his own expense made improvements to the shared property which, owing to the way the property is used, cannot be separated from the property, that participant has a right to a respective increase of his share in the right to the common property.
Improvements to the common property which are separable are owned by the participant who has made such improvements, unless otherwise provided by an agreement of the participants of the shared ownership.
Article 268. Consequences of Building on, Extension or Reconstruction of Dwelling or Another Construction in Common Shared Ownership
If an owner, in accordance with established rules, increases the space of the dwelling or another construction in shared ownership by extension, building on, or reconstruction at his own expense, then he may demand as his share of the common ownership respective changes to the dwelling or other construction, the order for the use of dwelling in it is subject to the respective changes.
Article 269. Possessing, Utilization and Management of Property under Shared Ownership
1. Possession and utilization of property under shared ownership will be established by an agreement of all the participants of such property, and in case such an agreement cannot be reached, according to the procedures established by the court.
Any participant of the shared ownership that has at his own expense made improvements to this property, which, owing to the way the shared property is used, cannot be separated from the property, shall have a right to a respective increase in his share of the right on the common property.
Separable improvements of the common property, unless otherwise stipulated by an agreement among the participants of the shared ownership, shall be owned by the participant who has made such improvements.
2. Property under the shared ownership shall be managed upon an agreement of all the participants (partners). Any participant of the shared ownership shall have a right to, at his own discretion, sell, present, devise, pledge or dispose of it any other way, observing the rules established by Article 270 of this Code.
3. Each participant of the shared ownership must participate in the payment of taxes, fees and other payments for the shared ownership, as well as the costs for its maintenance and safekeeping, unless the law or the contract indicates otherwise.
4. Expenses which are not necessary and were spent by one of the owners without the consent of the rest of the owners shall be borne by that owner. Any disputes arising hereunder shall be solved in court.
5. Fruits, products and revenues from use of property under shared ownership will be taken into common possession. Further distribution of fruits, products and revenues will be made among the participants of the shared ownership pro rata to their shares, unless otherwise stipulated by an agreement between them.
Article 270. Preferential Right to Buy Share in Common Ownership Right
1. In case of sale of a share in the common ownership right to an outside person, other participants of the shared ownership shall have a preferential right to purchase the share offered at the sale price and on other equal terms, except in cases of sale through open auction.
In case there is not agreement by all of the participants in a shared ownership that a share should be sold at public auction, public auctions for the sale of a share in the right of common ownership may be held in cases provided in point 2 of Article 274 of this Code and in other cases provided by legislation.
2. A seller of a share is bound to provide written notice to other participants in a shared ownership about his intention to sell his share to a stranger, and such notice will indicate price and other selling terms. If other participants in the shared ownership refuse to buy the share, or else fail to purchase a share in the ownership right on immovable property within a month, and with respect to other property within 10 days after notification, a seller has a right to sell his share to any person.
3. If, during a share sale, a breach of the preferential right occurs, any other participant in the shared ownership shall have a right to file a claim in court within three months, in order to have the buyer's rights and liabilities transferred to him.
4. No cession of a preferential right to another person shall be allowed.
5. The rules of this Article shall also apply in the case of a share's alienation under an exchange contract.
Article 271. Division of Property in Shared Ownership and Partition of Share from Property
1. Property in shared ownership may be divided among its participants by agreement between them.
2. Any participant of the shared ownership shall have a right to demand the partition of his share out of the common property.
3. In cases where shared ownership participants fail to reach an agreement on the method and terms of division of the shared property, or on a partition of a participant's share, a participant in a shared ownership shall have the right to demand the partition in kind of his share out of the common property.
If an in-kind share partition is not allowed by the law, or is impossible without disproportionate damage to the property existing within the shared ownership, a withdrawing owner shall have a right to receive a disbursement of his share value from the other shared ownership participants.
4. In the event of a disproportionate allocation of in kind shared property to a shared ownership participant, the imbalance of allocation shall be removed by appropriate monetary or other compensation.
Disbursement by other owners of compensation to a participant in a shared ownership, rather than in-kind partition of his share, must take place with his consent. In cases where the share of an owner is inessential, or it cannot actually be partitioned, and the owner does not have a substantial interest in the use of the common property, a court may, without consent of such owner, obligate him to deliver his share to the other participants in exchange for compensation to be paid out to him.
5. If an owner receives compensation in compliance with points 3 and 4 of this Article, he will forfeit the right for a share in the common property.
6. A common ownership share shall pass to the acquirer under a contract as of the moment of the contract's conclusion, unless otherwise stipulated by the parties' agreement. The moment of delivery of a joint ownership share under a contract which is subject to state registration, shall be determined in compliance with point 2 of Article 254 of this Code.
Article 272. Possession, Utilization and Disposition of the Property in Joint Ownership
1. Participants of a joint ownership shall jointly own and use common property, unless otherwise stipulated by an agreement between them.
2. Disposal of property which is in joint ownership shall be performed with the consent of all of the participants, which is inferred notwithstanding which of the participants has entered into a transaction on the disposal of the property.
3. Each participant of the joint ownership shall have a right to enter into transactions regarding the disposal of the common property, unless otherwise provided in the agreement of the participants. In the event that one of the joint ownership participants entered into a transaction related to the disposal of common property, that transaction may be voided upon the claim of the remaining participants that the participant who had entered the transaction lacked authority to do so, but only if it is proved that the other party who participated in the transaction knew or should have known beforehand about the lack of authority (Article 195).
4. The rule of this Article shall be applied in cases, unless otherwise provided by this Code, or by other laws concerning individual types of joint ownership.
Article 273. Division of Property in Joint Ownership and Partition of Share from Property
1. Division of common property between participants of a joint ownership, as well as the partition of an individual share, may be carried out only under the condition that the share of each participant in the common ownership has been previously defined.
2. Unless otherwise provided by legislation or by agreement between the participants, if common property is being divided or a share partitioned, their shares shall be considered equal.
3. The grounds and procedures for the division and share partition of common property shall be provided by the rules of Article 271 of this Code, to the extent that other rules for special types of joint ownership are not provided by this Code, or by other laws, and do not follow from the essence of the relationship between the participants of the joint ownership.
Article 274. Recovery Against Share in Common Property
1. An obligee of a participant of shared or joint ownership shall have a right to demand partition of the obligor's share in the common property and recovery against it in the event the participant's other property is insufficient.
2. If, in such cases, an in-kind partition of a share is impossible, or if other participants of the shared or joint ownership object to it, the obligee shall have a right to demand from the obligor that he have his share in the common property sold to the other participants at a price commensurate to the market value of that share, and to use the proceeds collected from the sale to clear his debt.
In case the other participants of the common ownership refuse to acquire the debtor's share, the obligee shall have a right to sue in court for recovery against the share the obligor has in the common ownership.
Article 275. Common Property of Spouses
1. Property earned by spouses during their marriage shall be their joint property, unless the law or a contract between them provides otherwise.
2. Property that belonged to spouses before they were married, as well as property that they acquired as a gift, or inherited during their marriage, as well as another property defined by law, shall constitute the property of each of them.
Items of individual use, such as clothes, footwear, jewelry and other items provided in the Marriage and Family Law, though purchased during the marriage at the expense of common funds, shall be recognized the property of the spouse who uses them.
The property of each of the spouses may be recognized as their joint property if it is ascertained that during the marriage investments which considerably increased the value of such property (overhaul repair, reconstruction, refurbishment, etc.), were made at the expense of their joint funds.
3. Under obligations of one of the spouses, the recovery may be imposed against such a property that is owned by him, as well as against his share in the common property, that would be due to him after division of family property.
4. If division of each spouse's share in their common property occurs, the rules to determine each spouse's share, as well the procedures for the division, shall be stipulated by the legislation on marriage and the family.
Article 276. Property of Peasant (Farming) Enterprise
1. The property of a peasant (farming) enterprise belongs to its members on the basis of joint ownership, unless the agreement between them stipulates otherwise.
2. Joint property of a peasant (farming) enterprise's members shall consist of the plantings in the land site, household and other constructions, repairs and other premises, productive livestock and work stock, poultry, agricultural and other machinery and equipment, vehicles, and inventory and other property purchased by the enterprise for the common money of its members.
3. Fruits, products and revenues gained as the result of the activity of the peasant (farming) enterprise shall be considered the common property of the members of the peasant (farming) enterprise and shall be disposed of by an agreement between them.
Article 277. Property of Members of Peasant (Farming) Enterprise
Personal earned incomes and savings of a member of a peasant (farming) enterprise, as well as the property purchased by him from personal funds, or acquired by other means provided by this Code, and which has not been transferred into the enterprise's ownership, shall be such person's property.
Article 278. Division of Property of Peasant (Farming) Enterprise
1. Upon termination of a peasant (farming) enterprise due to withdrawal of all its members, or for any other reasons, the common property shall be subject to division according to the rules provided by Article 271 of this Code.
2. Means of production that belong to a peasant (farming) enterprise shall not be subject to partition due to one member's withdrawal. The member who has withdrawn from the enterprise shall have a right to receive a cash compensation proportional to his share in the common ownership of that property.
3. In cases provided by points 1 and 2 of this Article, the shares in the joint ownership right to the property of a peasant (farming) enterprise, which belongs to the members of the peasant (farming) enterprise, shall be deemed equal unless otherwise stipulated in the agreement between them.
Article 279. Property of a Peasant (Farming) Enterprise, Founded in the Form of Economic Partnership or Cooperative
1. Members of a peasant (farming) enterprise may establish an economic partnership or manufacturing cooperative on the basis of the property of the enterprise. As a juridical person, such a restructured peasant (farming) enterprise shall have a right of ownership in the property transferred to it in the form of investments and other contributions made by the members of a farming enterprise, as well as on the property received as a result of its activity and otherwise acquired, as permitted by law.
2. The amount of investments of the members of a peasant (farming) enterprise who are participants of a partnership or members of a cooperative, shall be calculated on the basis of their shares in the joint ownership right to the property of a peasant (farming) enterprise, as determined in the manner provided by point 3 of Article 278 of this Code.
CHAPTER 14
TERMINATION OF OWNERSHIP RIGHTS
Article 280. Grounds for Termination of Ownership Rights
1. An ownership right is terminated when the proprietor alienates his property to other persons, abandons his ownership right in case of death or destruction of the property, as well as the loss of the ownership right to the property, or in any other cases provided by the law.
2. A citizen or a juridical person may abandon the ownership right to the property that belongs to him by announcing this fact, or by committing other actions that definitely attest to his withdrawal from the ownership, utilization, or disposal of the property without intention to preserve any rights in this property.
Rejection of the ownership right shall not entail the termination of the rights and liabilities of the proprietor with respect to the relevant property, until the moment the ownership right to such property is acquired by another person.
Article 281. Compulsory Taking of Property from Owner
Compulsory taking of property from an owner shall not be allowed, except in cases where, according to the grounds provided by the law, the following is performed:
1) filing of claim against property on the basis of the owner's obligations (Article 282);
2) compulsory alienation of property, which, by force of law, may not belong to the individual in question (Article 282);
3) alienation of immovable property due to taking of the plot of land on which it is situated (Article 284);
4) purchase of uneconomically maintained cultural valuables (Article 285);
5) requisition (Article 286);
6) confiscation (Article 287);
7) restructuring or liquidation of a juridical person pursuant to the court's decision (Articles 92, 96);
8) compulsory alienation of property in cases stipulated in Articles 240, 250, 271 of this Code;
9) denationalization and privatization (Article 228);
10) nationalization (Article 288).
Article 282. Execution Against Property on Owner's Obligations
1. Taking of property through execution against the property on the basis of the owner's obligations shall be effectuated by a decision of the court, unless other method of execution is provided by law or by contract.
2. The ownership right to the property which is executed against shall be terminated when the ownership right to the property vests with the person to whom the property is transferred.
Article 283. Termination of Individual's Ownership Right to Property That May Not Belong To Him
1. If, according to the law, an individual owns property that by virtue of law may not belong to him, the property in question shall be alienated by the owner within a one-year period from the date the ownership right to the property arose, unless other time period is established by law.
2. In case property has not been alienated by its owner within the time period indicated in point 1 of this Article, then such property, after its character and purpose have been taken into account, and according to the court's decision made upon the claim of a state agency or local self-governance agency, shall be subject to a compulsory sale whereby proceeds of the sale would be delivered to its ex-owner, or to transformation into state or public property whereby compensation would be given to its owner for the value of the property, as determined by a court. In such cases, the costs of the alienation of property shall be deducted from the amount turned over to the original owner.
3. If, as provided by law, a citizen or legal entity possesses an object for the possession of which one needs a special permit, and the owner was refused such permit, such object shall be subject to alienation according to procedures established for property that may not belong to the owner in question.
Article 284. Alienation of Immovable Property Due to Taking of the Plot of Land On Which the Immovable Property Was Situated
1. In such cases that taking of land for state or communal needs, or due to improper land utilization, is impossible without termination of ownership rights on dwellings, constructions, or other immovable property located on this plot of land, such property can be taken from the owner by the state through redemption, or through auction sales, according to procedures provided by the legislation of the Kyrgyz Republic.
A claim to take immovable property shall not be granted unless a proper state agency or local self-governance agency, having filed a claim with the court, substantiates that utilization of the land according to the purposes for which it is being confiscated is impossible without termination of ownership rights to the immovable property in question.
2. The rules of this Article shall apply to terminate ownership rights to immovable property by virtue of a decision of a state agency to take mountain deposits, water area basins and other plots of land on which the property is located.
Article 285. Redemption of Economically Mismanaged Cultural Valuables
If, with respect to cultural valuables which according to legislation are recognized as extraordinary valuable and are protected by the state, the owner economically mismanages such valuables in such a way that may result in the loss of their value, such valuables may be taken by the state from the owner by a decision of the court and by redemption or sale through public auction.
In the event of purchase of cultural valuables, their value shall be paid to the owner in an amount stipulated by agreement between the parties, and, in event of a dispute, by the court. In the case of a sale by public auction, the owner shall receive the proceeds of the auction less the costs spent on conducting the auction.
Article 286. Requisition
1. In case of natural disasters, accidents, epidemics, epizootic and other circumstances of emergency character, for the public benefit and according to the resolution of a state agency, property may be taken from the owner by paying him the market price of the property (requisition) according to the procedures and terms established by law.
2. The assessed value according to which the owner shall be reimbursed for his requisitioned property may be appealed in court.
3. A person whose property has been requisitioned shall have the right, upon completion of the circumstances which have led to requisition, to claim for the return of the remaining property in court.
Article 287. Confiscation
1. In cases stipulated by law the property may be taken from the owner without compensation by court decision as a sanction for committing a crime or any other infraction (confiscation).
2. In cases stipulated by law, confiscation may be made according to administrative procedure. Decisions regarding confiscation made in accordance with administrative order may be challenged in court.
Article 288. Nationalization
Transfer to state ownership of property owned by citizens and legal entities by virtue of nationalization shall be allowed only on the basis of the law on nationalization of such property, adopted in accordance with the Constitution, and pursuant to reimbursement to the person whose property was nationalized, of the value of the property and other losses caused.
CHAPTER 15
PROTECTION OF OWNERSHIP RIGHT
AND OTHER REAL RIGHTS
Article 289. General Principles of Ownership Rights Protection
1. An owner shall have a right to reclaim his property from the illegal possession of a stranger.
2. An owner may demand the recognition of his ownership right, as well as the elimination of other violations of his right not connected with dispossession.
Article 290. Reclaim of Property from Possessor in Bad Faith
In the event that property is reclaimed from the illegal possession of a stranger, an owner has the right to demand from a person who knew or should have known that his possession was illegal (possessor in bad faith) the return or reimbursement of all revenues which such person derived or should have derived within the entire period of his possession, whereas from a good faith possessor, the owner may demand all revenues which such person has derived or should have derived from the time he discovered or should have discovered the illegality of his possession, or from the time he received a summons about an owner's suit for the return of property.
Article 291. Reclaim of Property from Acquirer in Good Faith
1. If property was acquired for value from a person who had no right to alienate it, and the acquirer did not know, and had no reason to know, about that fact (good faith acquirer), then the owner shall have the right to reclaim the property in question from the acquirer, provided that the property was lost by the owner or by a person to whose possession he had delivered the property, or the property was stolen from the owner or the person to whom he'd given possession of the property, or the property in any other way left their possession against their will.
2. If property was acquired without compensation from a person who had no right to alienate it, the owner shall have the right to claim the property in all cases.
3. Money as well as bearer securities cannot be demanded from a good faith acquirer.
Article 292. Protection of Ownership Right upon its Termination Due to Grounds, Provided by Legislative Enactments
In case of the adoption of legislative enactments terminating the ownership right, losses suffered by the owner as the result of the adoption of these enactments shall be reimbursed to the owner in full by the state. Disputes about reimbursement of losses shall be settled in court.
Article 293. Invalidity of Enactments Violating Proprietor's Rights
If an owner's rights have been violated as a result of issuance of an enactment of executive authorities or of a local self-governance agency, which enactment is inconsistent with the law, then upon the demand of the owner, such enactment shall be held to be invalid by the court.
Losses suffered by the owner as a result of issuance of the enactment in question shall be reimbursed in full by the relevant executive authority or local self- governance agency.
Article 294. Protection of Other Material Rights
The rights provided in Article 291 of this Code shall also belong to a person who, though not an owner, has possession of the property by virtue of inherited lifetime interest, of a right of economic management or operational administration, or due to other grounds provided by law or contract. Such person has the right to protect his ownership against the owner.
Article 295. The Right of Good Faith Acquirer and Possessor in Bad Faith for Reimbursement of Operating Costs
1. Both good faith and bad faith possessors in turn shall have the right to demand from the owner reimbursement of operating and necessary expenses on the property, commencing from the time that income on property is due to an owner.
2. A good faith possessor shall have the right to keep the improvements made by him, provided such improvements can be separated without damages to the property. If such a separation of improvements is impossible, a good faith possessor shall have the right to claim reimbursement of costs incurred in the improvements, but such amount must not exceed the increased value of the property.
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