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The Civil Code of the Russian Federation

(with the Additions and Amendments of February 20, August 12, 1996,
October 24, 1997, July 8, December 17, 1999, April 16, May 15,
November 26, 2001, March 21, November 14, 26, 2002,
January 10, March 26, November 11, December 23, 2003)

Part II
Section IV
Chapter 33
Rent and Life Maintenance with Dependence
_ 1.
General Provisions on Rent and Life Maintenance with Dependence
_ 2.
Permanent Rent
_ 3.
Life Annuity
_ 4.
Life Maintenance with Dependency

Chapter 33. Rent and Life Maintenance with Dependence

_ 1. General Provisions on Rent and Life Maintenance with Dependence


Article 583. The Rent Contract


1. Under the rent contract one party (rent recipient) shall transfer property to the other party (rent payer) into his ownership, whereas the rent payer shall undertake to pay periodically rent to the recipient in the form of a definite sum of money or to provide money on his maintenance in a different form in exchange for the received property.
2. Under the rent contract it is possible to provide for the duty of paying rent on a permanent basis (permanent rent) or for the entire period of life of the rent recipient (life annuity). Life annuity may be established on the terms of the life maintenance of an individual with dependence.

Article 584. The Form of the Rent Contract


The rent contract shall be subject to notarization, whereas the contract providing for the alienation of real estate on the disbursement of rent shall also be subject to state registration.

Article 585. Alienation of Property on Rent Disbursement


1. Property to be alienated on rent disbursement may be turned over by the rent recipient for the ownership of the rent payer for charge or free of charge.
2. In case where the rent contract provides for the transfer of property for charge, the rules for purchase and sale (Chapter 30) shall be applied to the relations of the parties involved in transfer and payment, and in case where such property is transferred free of charge, the rules for the donation contract (Chapter 32) shall be applied inasmuch as the rules of this Chapter stipulate otherwise and do not contradict the substance of the rent contract.

Article 586. Encumbrance of Real Estate with Rent


1. The rent shall encumber the land plot, enterprise, building, structure or any other real estate, transferred on its payments. In case of alienation of such property by the rent payer, his obligations under the rent contract shall pass on the acquirer of property.
2. The person who transferred real estate encumbered with rent for the ownership of another person shall bear together with him subsidiary liability (Article 399) on the demands of the rent recipient which have arisen in connection with the violation of the rent contract unless the present Code, other law or contract provide joint and several responsibility under this liability.

Article 587. Security for Rent Payment


1. In case of transfer of a land plot or any other immovable property on rent payment the rent recipient shall acquire the right of pledge to this property as security for the rent payer's obligation.
2. The clause establishing the duty of the rent payer to present security for the discharge of his obligations (Article 329) or to ensure the risk of liability in favour of the rent recipient for default on these obligations or for their improper discharge shall be the essential condition of the contract stipulating the transfer of a pecuniary sum or other movable assets.
3. In case of default by the rent payer on the obligations, provided for by Item 2 of this Article, and also in case of loss of security or the deterioration of its conditions due to the circumstances for which the rent recipient is not answerable, the rent recipient shall have the right to dissolve the rent contract and claim damages caused by the dissolution of the contract.

Article 588. Liability for Delayed Rent Payment


For delayed rent payment the rent payer shall pay to the recipient interest, stipulated by Article 395 of this Code, unless a different amount of interest is specified by the rent contract.

_ 2. Permanent Rent


Article 589. Permanent Rent Recipient


1. Only individuals, and also non-profit organizations may be the permanent rent recipient, unless this contradicts the law and if this corresponds to the aims of their activity.
2. The rights of the rent recipient may be transferred under the permanent rent contract to the persons, referred to in Item 1 of this Article, by means of assignment of a claim and descend by inheritance or by way of legal succession in case of the reorganization of legal entities, unless otherwise stipulated by the law or the contract.

Article 590. The Form and Amount of Permanent Rent


1. Permanent rent shall be paid out in money terms in the amount fixed by the contract. The permanent rent contract may provide for the payment of rent by presenting things, performing works or rendering services that correspond to the pecuniary sum of the rent in value terms.
2. Unless otherwise stipulated by the permanent rent contract, the amount of the paid rent shall rise in proportion to the increase in the statutory minimum wages or salaries.

Article 591. The Dates of Permanent Rent Payment


Unless otherwise stipulated by the permanent rent contract, permanent rent shall be paid out upon the end of each calendar quarter.

Article 592. The Payer's Right to Permanent Rent Redemption


1. The payer of permanent rent shall have the right to refuse to make the further disbursement of rent by means of its redemption.
2. Such refusal shall be valid, provided that it has been made by the rent payer in written form within three months before the cessation of the payment of rent or for longer periods fixed by the permanent rent contract. In this case, the obligation of rent payment shall not terminate until the receipt of the entire sum of redemption by the rent recipient, unless a different redemption procedure is stipulated by the contract.
3. The condition of the permanent rent contract concerning the rent payer's refusal to use the right of redemption shall be null and void. The contract may stipulate that the right to the permanent rent redemption may not be exercised during the lifetime of the rent recipient or during different periods that do not exceed 30 years since the conclusion of the contract.

Article 593. The Redemption of Permanent Rent on the Demand of the Rent Recipient


The permanent rent recipient shall have the right to demand the redemption of rent by the payer in the cases when:
the rent payer has delayed its payment for more than one year, unless otherwise stipulated by the permanent rent contract;
the rent payer has breaches his obligations of security rent payment (Article 587);
the rent payer has been recognized as insolvent or other circumstances have appeared to testify patently to the fact that rent will not be paid out by him in the amount and in the period of time fixed by the contract;
real estate, transferred against the rent payment, has replenished common property or has been divided among several persons;
in other cases specified by the contract.

Article 594. Redemption Price of Permanent Rent


1. Redemption of permanent price in cases, provided for by Articles 592 and 593 of this Code, shall be effected at the price fixed by the permanent rent contract.
2. In the absence of a clause on redemption price in the permanent rent contract, under which property has been transferred for charge on payment of permanent rent, redemption shall be made at the price that corresponds to the annual sum of rent subject to payment.
3. In the absence of a clause on redemption price in the permanent rent contract, under which property has been transferred for rent payment free of charge, redemption price shall include in addition to the annual sum of rental payments the price of the transferred property to be determined according to the rules, provided for by Item 3 of Article 424 of this Code.

Article 595. Risk of Accidental Destruction of Property Transferred on Payment of Permanent Rent


1. The risk of accidental destruction or accidental damage of the property, transferred free of charge on payment of permanent rent, shall be borne by the rent payer.
2. In case of accidental destruction or accidental damage of the property, transferred for charge on payment of permanent rent, the payer shall have the right to demand accordingly the cessation of the obligation of rent payment or the charge of the conditions of its payment.

_ 3. Life Annuity


Article 596. Life Annuity Recipient


1. Life annuity may be established for the period of life of the individual who conveys property on rent payment or for the period of life of another individual indicated by the former individual.
2. It shall be permissible to introduce life annuity in favour of some individuals whose shares in the right to receive rent are regarded as equal, unless otherwise stipulated by the life annuity contract. In case of death of one of the rent recipients his share in the right to rent shall pass to the rent recipients who outlived him, unless the life annuity contract provides otherwise, and in case of death of the last recipient the rent payment obligation shall cease.
3. The contract establishing a life annuity in favour of the individual who had died by the time of concluding the contract shall be null and void.

Article 597. The Amount of Life Annuity


1. Life annuity shall be defined by the contract as a sum of money periodically paid out to the rent recipient during his life.
2. The amount of life annuity, defined in the contract, shall be per month not less than the minimum amount of the wage or salary, established by the law and in cases, provided for by Article 318 of this Code, shall be subject to increase.

Article 598. Dates of Payment of Life Annuity


Unless otherwise stipulated by the life annuity contract, life annuity shall be paid out at the end of each calendar month.

Article 599. The Cancellation of the Life Annuity Contract on the Demand of the Rent Recipient


1. In case of essential violation of the life annuity contract by the rent payer, the rent recipient shall have the right to demand that the rent payer redeem rent on the terms, provided for by Article 594 of this Code, or cancel the contract and claim for compensation.
2. If an apartment, dwelling house or any other property has been alienated free of charge on payment of life annuity, the rent recipient shall have the right to demand this property in case of the substantial violation of the contract by the rent payer with the offset against its value on account of the redemption price of rent.

Article 600. Risk of Accidental Destruction of Property Transferred in Payment for Life Annuity


The accidental destruction or the accidental damage of the property transferred in payment for life annuity shall not absolve the rent payer from the obligation to pay it on the terms, provided for by the life annuity contract.

_ 4. Life Maintenance with Dependency


Article 601. The Contract of Life Maintenance with Dependency


1. Under the contract of life maintenance with dependency the rent recipient-individual shall transfer the dwelling house, apartment or land plot he owns or any other real estate into the ownership of the rent payer, who undertakes to carry on life maintenance with the dependency of the individual and/or the third person (persons) indicated by him.
2. The rules for life maintenance shall be applicable to the contract of life maintenance with dependency, unless otherwise stipulated by the rules of this paragraph.

Article 602. The Duty of Providing Maintenance with Dependency


1. The duty by the rent payer to provide the maintenance with dependency may include the satisfaction of needs in a dwelling, food and clothing, and if this is required by the individual's state of health, also the care of him. The contract of life maintenance with dependency may also provide for the payment of funeral services.
2. The contract of life maintenance with dependency shall estimate the value of the entire scope of maintenance with dependency. In this case, the value of the whole scope of monthly maintenance may not be less than two minimum amounts of statutory wages or salaries.
3. In settling the dispute between the parties over the scope of maintenance to be provided to an individual the court of law shall be guided by the principles of integrity and reasonableness.

Article 603. Replacement of Life Maintenance by Periodical Payments


The contract of life maintenance with dependency may provide for possible replacement of the provision of maintenance with dependency in kind with periodical monetary payments during the life of the individual.

Article 604. Alienation and Use of Property Transferred for Life Maintenance


The rent payer shall have the right to alienate, put in pledge or in any other way encumber real estate, transferred to him as security of life maintenance, only with the preliminary consent of the rent recipient.
The rent payer shall be obliged to take necessary measures so that the use of said property during the period of the provision of life maintenance with dependency should not reduce the value of this property.

Article 605. The Termination of Life Maintenance with Dependency


1. The obligation of life maintenance with dependency shall cease with the death of the rent recipient.
2. In case of substantial breach by the rent payer of his obligations the rent recipient shall have the right to demand the return of real estate, transferred as security of life maintenance or the disbursement of redemption price on the terms, prescribed by Article 594 of this Code. In this case, the rent payer shall not have the right to claim the compensation for the expenses incurred in connection with the maintenance of the rent recipient.

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