The security deposit: advantages and disadvantages
The article explains the main advantages and disadvantages of the security deposit as one of the security instruments expressly provided in the Civil Code of the Russian Federation. The author analyzes the position of the debtor which have provided the security deposit in case of the creditor's bankruptcy. The author concludes that the agreement to provide the security deposit, on the one hand, is a convenient and simple method of securing the obligation. On the other hand, there is a risk that debtor may be deprived of the opportunity to return the assets transferred as security deposit in case of the creditor's bankruptcy. In this regard, the debtor before entering into an agreement to provide the security deposit should evaluate the risks and advantages of the security deposit itself.