Collateral

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  • Pledging: a complete guide to security interests in intangible property under French law

    By Yasmine EDDAM
    13 June 2025
    Pledging is an essential legal mechanism for securing financing, but its complexity can confuse entrepreneurs and managers. Pledging is a powerful form of security, whereby a debtor transfers an intangible asset, such as a claim or company shares, to a creditor to secure a debt. Understanding how it works is a crucial step in negotiating a loan or structuring a financial transaction. This article provides an overview of the principles of pledging, its various forms and the issues involved. To find out more about each mechanism, our dedicated articles are at your disposal. For legal advice on securities and guarantees, our law firm is at your service. What is pledging? A definition for practitioners Pledging is defined by article 2355 of the Civil Code as "the assignment, as security for an obligation, of an intangible movable asset or a group of assets...
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