Security Agreement Meaning In French
See question 16 for specific requirements of perfection. In addition, some security documents, such as . B, a collateral by commercial or real estate mortgages, must be subject to the tax register and registration obligations must be paid by agreement. If the instrument is not subject to registration, it may result in a nullity. Other security documents may be voluntarily submitted for registration, as this gives this document certainty as to the date. The creation of this type of security is subject to a number of strict and quite heavy requirements. In particular, it can only be granted by the borrower, only in favour of licensed credit institutions and as collateral for their payment obligations on loans made available to them for the acquisition (not refinancing) of certain assets or equipment, and must be granted directly in the corresponding loan facility contract. The collateral must be registered with the administrator of the commercial court responsible for the place where the inventory is located within 15 days of the execution of the loan agreement. French law provides for two methods of pawning the state of affairs.
The first, known as the civil deposit obligation, requires that the secured creditor effectively transfer the holding and control of the assets constituting the mortgaged inventory. This objective is generally achieved by the parties` designation of a third-party supplier that separates the mortgaged items, controls entries and exits and keeps a record accordingly. Although it is difficult to implement and manage, a civil inventory directive is a very effective security interest, as the secured creditor`s holding allows it to outperform even creditors who would otherwise be legally privileged over enforcement revenues. Under French law, security interest must be granted directly to creditors whose debt is the subject of the guarantee, not from a person acting on the basis of the secured creditor or a group of secured creditors (i.e. a guarantee trustee). This is due to the nature of security accessories. Another consequence of this side effect of security is that the transferee of a private debt automatically benefits from the guarantee granted to guarantee these claims. This type of interest rate on securities is only available for securities issued by a limited company in the form of dematerialized in France, in the form of registrations on paper accounts (with the issuing company) or in electronic accounts (opened in a bank or other princess approved for the operation of securities accounts). The collateral is created by execution and delivery by the pledge, which must follow a prescribed format.
However, legal experts generally require that the collateral be included in the register of securities transfers and the register of individual title accounts of the issuing company. There are no special requirements for perfection. The pledge agreement may provide that other securities held by the lender are credited to the pawn account, after which, without further formality, they are considered to be included in the initial amount of collateral from the date of the initial pledge. Note that none of the parallel mechanisms of debt and trust have been universally recognized by the French courts. Although a Supreme Court decision (Cass com 13 September 2011 No. 10-25533 Belvedere) ruled, in a conservatory procedure opened in France, that, under certain conditions, the concept of parallel debt, subject to the laws of the State of New York, is not incompatible with the concept of French law of international public order. This decision cannot be regarded as a general recognition in France of the enforceable power of the rights of a security guard with a parallel obligation of guilt and no guarantee can be given that such a structure will be maintained by other French courts when they are examined.