The paper certificate of indebtedness (bearer certificate of indebtedness/registered certificate of indebtedness) is a negotiable instrument that is established and registered at the competent land registry office. The lien on the property can only be changed or deleted if the debt certificate is submitted to the land registry. If the debt certificate has been lost, it must be declared void by the court, which involves time and costs. If a paper debt certificate that has been redeemed, i.e. is no longer encumbered with a debt (mortgage), is not cancelled, it is essential that it be kept safe.
In the case of a registered mortgage deed, no security is issued. It comes into existence with the entry in the land register.
Important: Payment of the debt to the creditor does not automatically extinguish the claim. The debt certificate claim continues to exist in its nominal value.