Lawyer - Personal property security

In an economic environment where the security of transactions is essential, security interests are powerful legal tools for protecting receivables. Pledging, collateral security, assignment of receivables by way of guarantee, retention of title clauses, etc. When used properly, these mechanisms can help prevent non-payment and strengthen your position in the event of your debtor defaulting. They fall within a codified legal framework, notably the articles of the Civil Code relating to security interests.

Our firm, Solent Avocats, based in Marseille, will assist you at every stage: choosing the right security, drafting the deed, publicity formalities, enforcement in the event of default. Our expertise in banking law, civil enforcement procedures and debt recovery enables us to offer you precise, effective advice. We act both upstream, to secure your guarantees, and downstream, to enforce or contest them.

At the heart of our approach is up-to-date expertise in recent reforms, a strategic vision of guarantees and the ability to take action in high-stakes financial cases. Our team regularly publishes on these complex issues, convinced that clear and reliable information is a lever for economic security and a factor in preventing disputes.

Why create a security interest?

When it comes to credit or supplies, securing a debt is often essential. A movable security enables a creditor to obtain a preferential right over an asset owned by the debtor or a third party, in order to ensure payment of a debt. In the event of non-payment, it gives the creditor a decisive advantage over other creditors, particularly in insolvency proceedings.

In an environment where insolvency can never be ruled out, this type of guarantee can make the difference between recovery and outright loss. In many cases, it can also deter default, thanks to its legal force. But it must be properly constituted, published and, where applicable, enforceable.

Our firm analyses each situation to identify the relevant securities: special security interests, precautionary measures, movable liens, or even the creation of a security trust when the nature of the assets lends itself to this. We can also help you obtain a writ of execution if necessary.

Choosing the right instrument: pledge, collateral, retention of title, etc.

There are many types of movable security, each with its own legal and practical characteristics. Choosing the right instrument depends on the type of asset to be secured, the capacity of the debtor and the contractual relationship in place. This choice is part of a strategy to safeguard your financial interests.

Possible options include:

• The pledge pledge: ideal for tangible movables (vehicles, stocks, equipment), it can be with or without dispossession. It is a general pledge if no asset is specified.

• Pledging Suitable for receivables, company shares, shares, business assets or bank accounts.

• Retention of title clause protects the seller until the price has been paid in full.

• Assignment of receivables as security This is particularly used in the commercial and banking sectors.

Our role is to guide you towards the most effective instrument, depending on your objectives, your situation and the value of the assets concerned. We also draw up the deeds, publicise them and record them in the registers required by the French Commercial Code.

The 2021 reform: what has changed, what needs to be secured

The Order of 15 September 2021 has radically overhauled the law on security interests. The Civil Code has once again become the central source of common law on security interests. The reform has simplified certain rules, particularly in terms of disclosure, but has also introduced new requirements to ensure that collateral remains effective.

Some old security interests may have lost their legal effectiveness. Failure to register, to comply with the formalities or to apply the new rules correctly may render a security interest unenforceable. It is therefore essential to examine existing security interests in the light of the new measures resulting from this reform.

We carry out full audits, including verification of the legal effects, compliance with mandatory information, and analysis of the situation of the settlor (natural or legal person, partner, company, etc.).

Publication, efficiency, execution: securing the entire safety cycle

Creating a security interest is not enough: it must be enforceable, applicable and enforceable in court. In the absence of publication or the required formalities, the creditor risks losing the benefit of the security. Conservatory measures, such as seizure of goods or seizure of property, may also be considered to preserve rights in an emergency.

We intervene at all stages:

• UpstreamThe aim is to establish a clear legal strategy and ensure that the guarantees are in line with applicable private law.

• In progressThe debtor's assets, whether tangible or intangible, can be realised before the competent court, whether a magistrates' court or a commercial court.

• In the litigation phaseThe debtor is obliged to pay the debt, with the support of a bailiff, to enforce a court order or an enforceable title.

Our firm uses its expertise in civil law, securities law, preferential rights and resale rights to guarantee the effectiveness of the security and the recovery of debts.

Why work with us?

We work with a wide range of clients (commercial companies, bank creditors, private lessors, self-employed professionals) faced with the need to protect their receivables or respond to a breach of contract.

Our strengths:

• A focused expertise securities law, banking law and debt collection.

• A detailed knowledge the regime applicable to each security interest, including the most specific (surety bond, right of retention).

• A ability to intervene quicklyincluding in an emergency, to implement precautionary measures.

• A control of deadlines and procedurestaking into account recent decisions by the Cour de cassation.

We act in all legal matters relating to transferable securities, within a framework that strictly complies with French law and current case law.