Securities in construction: pitfalls and perspective schemes of work


Release of securities in construction and investment sphere always generated a lot of questions. The seminar «Investment and hypothecary securities in construction: schemes of work and optimization of taxes», which took place in Kiev on October 12, 2005, answered them.

The program of the seminar was extremely full. During its work schemes of use of target bonds and options for attraction of funds at construction of habitation, operating today in practice, prospects of release of securities of Institute of Mutual Investment (IMI) and of Fund of Real Estate Operations, hypothecary certificates have been considered. And participants could hear competent opinion not only of practising lawyers and underwriters, but also of leading experts of State Commision of Securities and Stock Market (SCSSM).

Before the seminar interview to one of lecturers - the expert under the securities certificated by SCSSM, lawyer at Konnov & Sozanovsky, Ms. Natalia Dotsenko-Belous took place.

The correspondent: Tell us, in which way is the mortgage during construction applied and what from this plan will be illustrated at the seminar?

Natalia Dotsenko-Belous: In construction the mortgage of not completed construction, the mortgage of property rights, the mortgage of not agricultural ground areas are actively applied. Thus at the seminar listeners will receive the decision of the most complex hypothecary questions, will be able to estimate, when and in what cases it is expedient to builder and investor to resort to hypothecary maintenance, and also will open for themselves new optimizing features of the tax account of hypothecary operations.

C: And about what there will be a speech concerning hypothecary securities?

N.D.: The Seminar will help to estimate prospects of occurrence of hypothecary securities and to be prepared for application of hypothecary-optimizing schemes in construction, including with use of securities - target, hypothecary bonds, hypothecary certificates of participation and hypothecary certificates with the fixed income.

C.: There exist a lot of disputes, whether application of bonds in mass construction is lawful at presence of financial-credit mechanisms.

N.D.: This seminar will dispell all doubts in legality of application of bonded schemes in construction, and also will help to choose, under the certain building project, the optimal individual scheme of work with securities (depending on a binding of investment campaign to a building cycle).