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Security law and insolvency proceedings: changes introduced by the Order of 15 September 2021
Is your mortgagee or guarantor better protected since 1 January 2022? The Order of 15 September 2021 overhauled the law on security interests and the system of collective proceedings, creating classes of affected parties and a cram-down mechanism. What do these reforms mean in practical terms for secured creditors?.
Real security for third parties: a renaissance of real surety?
You have set up a mortgage on your property to guarantee the debt of a third party - without committing yourself personally to payment. This real security for third parties, long known as real surety, went through a major legal controversy before being clarified by the reform of security interests of 15 September 2021. Here's what the new regime means for borrowers, guarantors and credit institutions.
The revolution in property security: disappearance of special liens and reform of mortgages
Since 1 January 2022, property security interests have been radically overhauled by the Order of 15 September 2021: special property liens have disappeared, and the rules applicable to mortgages have been simplified. In practical terms, this reform changes the guarantees available to creditors and the obligations of property owners.
Creditors' general right of lien: principles and limits
Your debtor doesn't pay: which assets can you exercise your rights over, and which creditors come before you? The general right of pledge - based on articles 2284 and 2285 of the Civil Code - guarantees each creditor a right over all the debtor's assets, but this protection has limits that all creditors must anticipate.
Classification and hierarchy of security interests: who comes before whom?
Several creditors are simultaneously claiming the same asset: which one will be paid first? The hierarchy of security interests answers this question, with different rules depending on whether you are in or out of collective proceedings. A mistake in ranking can wipe out your entire claim.
Consumer creditConsumer credit guarantees: protecting the guarantor
Have you signed a consumer credit guarantee without considering all the consequences? The law imposes strict formalities to protect individual guarantors: a compulsory handwritten statement, proportionality of the commitment and the right to annual information. What the law guarantees - and how to enforce it.
Security interests in movable property: a diversified legal arsenal
If your creditor requires security for your movable property, or you are looking to secure a debt without a mortgage, since 2006 the Civil Code has organised an arsenal of security interests in movable property, which has been radically overhauled by the Ordinance of 2021. Pledging, collateral security, ownership security, special privileges... each mechanism responds to a different logic and set of conditions.
BondThe protection of guarantors under French law: what are the differences between the different categories?
You are a guarantor and your bank is demanding payment of a debt that is not yours: your rights vary considerably depending on whether you are an individual or a legal entity. Since the Order of 15 September 2021, the Civil Code has provided graduated protection - proportionality of the commitment, duty to warn, annual information - of which many guarantors are unaware. Here's an overview of the mechanisms that apply depending on your profile.
BondTermination of a guarantee: methods and consequences
Is your guarantee still valid, or has it already lapsed without your knowledge? A guarantee is extinguished either by the fate of the principal debt or by an event specific to the guarantor. Understanding these two options will determine whether the creditor can still sue you.
Methods of executionThe system of maritime mortgages
You are financing the acquisition or construction of a ship and are looking for security adapted to the value of this atypical movable asset. A maritime mortgage charges the vessel without dispossession and gives the creditor a preferential right to the sale price in the event of default. The legal system, formalities involved in setting up a mortgage and how it can be enforced: the full rundown.
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