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Current account guarantees: a complete guide and legal issues
Undertaking to guarantee the balance of a bank or shareholder current account exposes the guarantor to a risk that is difficult to measure, as the balance is constantly changing. Current account guarantees combine the rules of surety law, current account law and, often, insolvency law. This article presents the essential mechanisms involved, from the formation of the guarantee to its extinction.
The mortgage attached to sentencing judgments: operation and scope in French law
You have obtained a judgement, but your debtor is slow to pay and is starting to sell his property. The legal mortgage attached to judgments of condemnation enables you to secure your claim on the debtor's property as soon as the judgment has been handed down. This security, which is often overlooked, confers a preferential right and a right of pursuit that can be enforced against third parties.
Right of retentionThe right of retention under French law: foundations, conditions and detailed effects
You are holding property belonging to your debtor that has not been paid for. The right of retention authorises you to refuse to return it until your debt has been paid in full, without prior legal proceedings. But its conditions are strict and its scope in relation to third parties more limited than it might seem.
CollateralProtective pledge of shares and securities: procedure, effects and conversion
Your debtor owns shares in a company: a protective pledge enables you to freeze these assets before any judgement to secure your debt. This is an effective procedure, but it is subject to strict formalities, the slightest deviation from which could jeopardise the guarantee. A complete guide to the conditions for implementing the procedure, the effects of the pledge and its conversion into a definitive security interest.
Methods of executionPacte commissoire and judicial allocation: alternatives to seizure of property for creditors
Are you a mortgagee and do you think that foreclosure is taking too long? You can obtain ownership of the mortgaged property without going through the compulsory sale process by means of a commissory agreement and judicial allocation. These alternatives, enshrined in the 2006 reform, are strictly regulated to protect the debtor.
BondThe performance bond: a sui generis personal guarantee for the performance of obligations
You need to secure the performance of a commitment by a third party: the performance bond offers a flexible personal guarantee, distinct from the traditional surety bond. The promisor undertakes to obtain performance from a third party, and is liable if the third party defaults. Understanding this mechanism will enable you to use it effectively in your contractual negotiations.
Joint and several liability and indivisibility of obligations: key guarantees for creditors
Your debtor is insolvent, but others have agreed to pay with him? Passive solidarity allows you to claim the entire debt from any of the co-debtors. This mechanism, set out in article 1313 of the Civil Code, is one of the most effective guarantees in the law of obligations.
Pledging of exploitation rights: cinematographic films and software, specialised securities
Your company owns the exploitation rights to a film or software and is looking to increase their value in order to obtain financing. These intangible assets can be the subject of a special pledge, distinct from the general system, with its own rules for creation and enforceability. Understanding this special system will determine the validity of the guarantee given to your bank.
Pledging of shares: guarantees and issues for civil and commercial companies
Your bank will require you to pledge your shares as collateral for a loan: you are committing yourself as a partner, with consequences that vary considerably depending on the form of your company. The other partners have rights that must be anticipated when the deed is drawn up. We take a closer look at the legal mechanisms involved in pledging company shares and the practical implications for both the pledgor and the creditor.
Securities account pledging in the DEEP era (Blockchain): challenges and opportunities
Pledging financial securities registered on a blockchain raises legal issues that the traditional securities account regime does not directly resolve. French law has recognised the shared electronic record (DEEP) as a medium for representing certain securities, but the rules governing the creation and enforceability of pledges still need to be mastered. This guide analyses the practical challenges of this collateral in the age of blockchain.
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