Security interests in movable property
Pledges and collateral: major simplification of movable guarantees
By Raphaël MORENON5 April 2025Movable collateral is an essential tool for companies financing their activities. Ordinance no. 2021-1192 of 15 September 2021 represents a genuine revolution. It unifies the pledge regime, eliminates texts scattered across several codes and clarifies the distinction between pledge and collateral. These changes will facilitate access to credit and enhance legal certainty. The reform puts an end to the duality between civil and commercial pledges. All pledges are now governed by the Civil Code, regardless of their purpose. Article 2333 defines a pledge as "an agreement by which the pledgor grants a creditor the right to be paid in preference to his other creditors on a present or future movable asset or group of movable assets". The simplification is spectacular. The ordinance repeals five entire chapters of the French Commercial Code, amounting to 70 articles....
Judicial mortgages and pledges: securing your claim on a building or a business
Law of guarantees, security interests and enforcement measures, Security interests in movable propertySeizures of property, as we have already seen, are designed to freeze assets. Sometimes, however, the aim is not to prevent the debtor from using his assets, but rather to secure priority over a valuable asset should it be sold. A creditor may wish to secure his claim on the property...Movable sureties: protect your business claims effectively
Law of guarantees, security interests and enforcement measures, Security interests in movable propertyProtecting your receivables is vital for your business. A defaulting customer, a partner in financial difficulty or an insolvent debtor can put a strain on your cash flow. The movable assets of your debtors are a valuable pledge for securing your receivables. French law offers several mechanisms adapted to different situations...Security interests in movable property after the Ordinance of 2021: simplification and modernisation
Law of guarantees, security interests and enforcement measures, Security interests in movable propertyThe law governing movable securities in France has become progressively more complex over the decades, to the point where it has become a veritable legal labyrinth for practitioners and litigants alike. With multiple liens, a distinction between pledge and collateral, and special security interests scattered across different codes, professionals seeking to effectively secure their receivables had to...Creditors' general right of lien: principles and limits
Law of guarantees, security interests and enforcement measures, Security interests in movable propertyThe right of general pledge is the cornerstone of the legal system protecting creditors. This mechanism, which is sometimes misunderstood, ensures a balance between the security of transactions and the rights of debtors. Its practical application raises a number of questions that merit analysis. The legal framework of the general right of lien...Classification and hierarchy of security interests: who comes before whom?
Law of guarantees, security interests and enforcement measures, Security interests in movable propertyWhen it comes to credit, not all creditors are in the same boat. When several creditors come forward at the same time to be paid, the question of ranking becomes decisive. The ranking of movable securities is one of the most technical issues in securities law - and potentially one of the most...Security interests in movable property: a diversified legal arsenal
Law of guarantees, security interests and enforcement measures, Security interests in movable propertyIn an unpredictable economic environment, creditors are looking to secure their claims. Security interests in movable property are an effective mechanism for guaranteeing the recovery of a debt without using real estate. These legal instruments offer increased protection to creditors wishing to limit the risk of non-payment. The four...Security interests in French law: presentation and classification following the 2006 and 2021 reforms
Law of guarantees, security interests and enforcement measures, Security interests in movable propertyLegal uncertainty is bad for business. Securities are the answer. These guarantees protect creditors against the risk of debtor insolvency and ensure the performance of obligations. The legislator overhauled this area in 2006 and again in 2021. These reforms modernised a system that had become unsuited to today's economic needs. The...
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