“3. In the case of opening the bankruptcy proceedings of the manager, the
customer / builder or contractor or subcontractor who performs obligations of
construction, the property paid by investors should not be included into the liquidation
property.
Individual - principal according to the contracts on FCF, who has documented
rights in action on financial obligations, determined by this Law acquires creditor's
rights that are the right in action to the debtor (manager, customer / builder or contractor
or subcontractor if the property of them has been acquired by the costs of principal”
[24].
The disadvantage of the Law of Ukraine “On Financial and Credit Mechanisms
and Management of Housing Construction and Real Estate” [20] is the absence of the
possibility to join the FCF by the successor of the principal and obtaining the ownership
on the investment. That is, the contractual rights’ transmission from the principal to the
successor is not established. Of course, the law provides the compensation for the
investment, however, in our opinion, such compensation is not tantamount to the right
to obtain the ownership on the investment.
We agree with O. Yavorska [25], who refers agreements to participate in the FCF
to the contracts with the acquisition of the property ownership, because of their aim. In
particular, the researcher notes that the agreement to participate in the FCF aims to
transfer the ownership to the principal of construction. Consideration of this contract
construction as a property management is not conducive to guarantee the protection of
the interests of persons who wish to invest in construction. It appears that the absence
of legislative provisions of the possibility of joining the FCF cannot realize the goal
being set by the testator - the acquisition of property. The compensation paid to heirs
is not commensurate with the right of ownership that successor would receive in case
of joining the FCF and the contribution to the FCF. Thus, the interests of successors in
this situation are not secured. We believe that the before mentioned law should be
supplemented with the norm that would allow the successor to be engaged in FCF and
continue to fulfill the financial obligation under the agreement on the FCF
participation.
Another way of investing in the construction industry is to invest in securities that
are the certificates of the Fund on real estate operations (FREO). The certificate of
FREO – is a security that certificates the right of the owner to receive income from
investing in the real estate. The fundamental characteristics of securities are their
turnover, standard and seriality, liquidity and orderliness of state recognition. The
manager uses FREO funds for the benefit of certificate holders under the terms of
property management for real estate transactions in the manner prescribed by the Rules
of the background, for profit. Thus the certificate FREO - is actually a security
certifying the right in action of the investor to get the income from the investment. In
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