Article 15 — Using Land Use Rights as Collateral

1/ A landholder may collateralize his use right to financial institutions for a period of time that shall be specified under regional laws. 2/ Financial institutions shall consider the maximum potential of the land when providing credit to the landholder. 3/ A landholder may collateralize his use right as suretyship. 4/ Contracting parties shall stipulate under their contract the time for the repayment of the debt, and the length of time that the creditor may use the land where the debtor fails to pay the whole or part of the debt. 5/ The land use right of the creditor over the collateralized land shall not exceed above ten years. 6/ Where the debtor fails to pay the debt at the time prescribed in the contract, the creditor may have the right to use, lease, or sharecrop the land for the prescribed time only. 7/ Where the creditor, by using the land, generates more money than he had lent, the debtor may not claim the difference. 8/ Where the debt is partially paid, the right of the creditor to use the land shall be adjusted in accordance with the unpaid debt. 7C0D236 D/ *= v=( %W:Je‘ +<>
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U$? gE "" :<e"Q Ž ^ ‹‹ 9/ The liability of the debtor shall be limited to the use right of the land transferred for the agreed time. 10/ Collateral contracts shall be made in writing and be authenticated and registered before Woreda, Special Woreda and City-Adminstration institutions authorized by regional governments. 11/ Without prejudice to the above Sub- Articles of this Article, the rights and obligations of the creditor and debtor shall be determined by regional laws. 12/ Any dispute regarding the collateral contract shall be resolved through conciliation/mediation or regular court having jurisdiction.