Project News

[December 29 - 30, 2011]

Ministry of Justice and JICA held dissemination seminar on Security Right in Civil Code at Hotel Combodiana on 29th and 30th December 2011. The lecturer was a member of Japanese Advisory Group, Toyohiro Nomura (Professor, Gakushuin University) who drafted Security Right section in Civil Code. The officials of Ministry of Justice, Ministry of Land Management, Urban Planning and Construction, cadastral officials, bank officers from all over Cambodia (with total of 250 participants) attended the seminar.

Through the application of Civil Code, ‘GAGE’ system provided by 2001 Land Law was abrogated, and in place of this, Hypothec system was created. GAGE and Hypothec have a common nature that the creditor does not possess the immovable. However, their difference is that in GAGE the creditor possesses the certificate of title, while in Hypothec does not hold the certificate of title. Because of this difference, Security Right system and practice in Cambodia dramatically changed.

To avoid economical confusion, JICA held the above mentioned seminar. In the seminar, Prof. Nomura has provided a series of lectures on the comparison between GAGE and Hypothec, the main points of security right in Civil Code. Furthermore, he claimed a personal opinion that the contract not to return the certificate of title, which has similar effect to GAGE, will be null and void.

In the question and answer session followed by the lectures, participants asked many questions on execution method in Code of Civil Procedure and issues on co-owned buildings, which are related to Hypothec.

We believe this seminar was a first step for Hypothec to take root smoothly in Cambodia.