Collateral
Special pledges and collateral: agricultural warrant, cash pledge and assignment of receivables as security
By Yasmine EDDAM2 July 2025The Ordinance of 15 September 2021 radically modernised the law on security interests, one of the pillars of security in commercial transactions. This major reform has simplified and rationalised many mechanisms, in particular special pledges, while introducing new guarantees adapted to current economic realities. For creditors and debtors alike, understanding these changes is fundamental to securing their commitments and optimising their financing. Navigating this reshaped legal landscape requires a clear vision of the tools available, how they work and their purpose. For an overview, our comprehensive guide to the law on movable securities provides a solid foundation before tackling these specific mechanisms. Inventory pledges: now governed by ordinary law Inventory pledges, an essential financing tool for many businesses, have been completely reformed. The legislator's aim was to put an end to the complexity that had...
Pledging intangible movable property: legal regime and enforcement of claims
Law of guarantees, security interests and enforcement measures, PledgingFinancing is the driving force behind business development. To obtain credit, creditors require solid and effective guarantees. Among the tools available to economic players, pledging intangible assets, and more specifically pledging receivables, occupies a prime position. This type of security enables...Pledging tangible movable property: legal regime, constitution and enforcement
Law of guarantees, security interests and enforcement measures, PledgingThe financing of companies and the securing of commercial receivables are based on a range of legal tools, the effectiveness of which is a key factor in the confidence of economic players. Among these instruments, the pledge of tangible movable property is a fundamental security, enabling a creditor to protect himself against the risk of non-payment by obtaining a...Personal property security law: a complete guide to pledges and collateral after the 2021 reform
Law of guarantees, security interests and enforcement measures, PledgingCredit is an essential driver of business, but it depends on the creditor's confidence in the debtor's ability to honour its commitments. To secure a debt, the law of movable sureties offers an arsenal of guarantees enabling movable property to be assigned to preferential payment...Protective pledge of shares and securities: procedure, effects and conversion
Law of guarantees, security interests and enforcement measures, PledgingWhen a creditor seeks to secure the recovery of its debt, the rights that its debtor holds in a company are a prime target. The protective pledge of company shares or securities is an effective procedure for 'freezing' these assets pending a court decision....Pledging of business assets: constitution, publicity and issues
Law of guarantees, security interests and enforcement measures, PledgingWhen a claim appears to be under threat, creditors have a number of legal tools at their disposal to guarantee future payment. Within the panorama of legal securities under French law, the protective pledge of a business is a particularly effective measure. It makes it possible to take security over one of the company's most valuable assets,...Pledging of exploitation rights: cinematographic films and software, specialised securities
Law of guarantees, security interests and enforcement measures, PledgingIn addition to traditional tangible assets, a company's economic value increasingly lies in its intangible assets. For creative and technological industries, the exploitation rights to a film or software often represent the bulk of their assets. Obtaining financing based on these assets requires special tools...Life insurance pledging: a financial guarantee instrument and its implications
Law of guarantees, security interests and enforcement measures, PledgingMuch more than a simple savings product, a life insurance policy is a versatile financial asset. Its economic value makes it a particularly valuable guarantee for creditors, especially a bank or other credit institution, which may require it to guarantee a loan, for example...Pledging a business: securing financing for companies and businesses in the craft and rural sectors
Law of guarantees, security interests and enforcement measures, PledgingObtaining finance is a frequent and often essential stage in the life of a business. For banks and other creditors, lending money means ensuring future repayment. Pledging a business is one of the most common and effective ways of securing a loan...Pledging of financial instrument accounts: legal regime and practical issues
Law of guarantees, security interests and enforcement measures, PledgingThe pledge of financial instrument accounts is an essential guarantee tool for companies seeking to obtain credit or secure market transactions. Particularly effective and relatively flexible, this security makes it possible to mobilise a portfolio of securities without losing ownership. Its implementation...Pledging of shares: guarantees and issues for civil and commercial companies
Law of guarantees, security interests and enforcement measures, PledgingWhen a company seeks to obtain financing, the collateral required by lenders is often at the heart of the negotiations. Among the tools available, the pledge of shares represents an effective security, enabling a partner to guarantee a debt by using his own shares as collateral. This technique, which...Pledging of receivables: ordinary law, dailly slip and specific features
Law of guarantees, security interests and enforcement measures, PledgingFor a company director, trade receivables often represent a major asset, but their value remains latent until they are paid. However, these receivables can be turned into a lever for financing or a solid guarantee against a buyer. Pledging receivables is the legal mechanism that makes this possible,...Pledging: a complete guide to security interests in intangible property under French law
Law of guarantees, security interests and enforcement measures, PledgingPledging is an essential legal mechanism for securing financing, but its complexity can confuse entrepreneurs and managers. It is a powerful guarantee, a security interest in which a debtor hands over an intangible asset, such as a claim or shares in a company, to a creditor in order to secure a loan....Securities account pledging in the DEEP era (Blockchain): challenges and opportunities
Law of guarantees, security interests and enforcement measures, PledgingThe pledge of financial securities is an essential guarantee for many financing transactions. Traditionally recorded in a securities account, it is undergoing a major evolution with the emergence of blockchain technology. This innovation, recognised in French law under the name Dispositif d'Enregistrement Électronique Partagée (DEEP), opens up new prospects...Pledging securities accounts and insolvency proceedings: protecting your rights in the event of insolvency
Law of guarantees, security interests and enforcement measures, PledgingFor a creditor, obtaining a pledge on a securities account is a reassuring step. But what happens to this security when the debtor goes through a financial storm and is the subject of collective proceedings? Far from being weakened, this security reveals all its power in this context, offering far greater protection than other forms of security.Enforcement of securities account pledges: recovery procedures and rights of the pledgee
Law of guarantees, security interests and enforcement measures, PledgingThe pledge of a securities account is a powerful guarantee, but its true effectiveness is measured at the time it is realised. When the debtor fails to honour his commitments, the creditor must be able to transform this security into cash to recover his debt. This phase, far from being a mere formality, is a process...Management and development of the pledged securities account: optimising the guarantee base
Law of guarantees, security interests and enforcement measures, PledgingPledging a securities account is a much more dynamic form of security than it might seem. Unlike a guarantee covering a single, specific asset, the collateral can and will change throughout the life of the loan it is securing. This ability to adapt is one of its strengths...Creating a securities account pledge: formalities, documents and best practice
Law of guarantees, security interests and enforcement measures, PledgingThe pledge of a securities account is a powerful and flexible guarantee mechanism, widely used in business to secure financing or a transaction. However, it has to be set up in accordance with a precise set of formalities, each stage of which determines its validity and effectiveness. A simple error or omission...Pledging a securities account: a complete guide to securing your financial assets
Law of guarantees, security interests and enforcement measures, PledgingThe pledge of a securities account is a key financial guarantee in the economic landscape, offering an effective means of securing a debt using a portfolio of assets. Although its mechanism is recognised for its power, its technical implementation, clarified by an abundance of case law, can seem complex to the...
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