Article 2366 of the French Civil Code
November 6, 2023
If more has been paid to the pledgee than the secured debt, the pledgee owes the difference to the settlor.
If more has been paid to the pledgee than the secured debt, the pledgee owes the difference to the settlor.
Ownership of an asset may be retained as security by the effect of a retention of title clause which suspends the translative effect of a contract until full payment of the obligation which constitutes the consideration for it. Ownership thus reserved is the accessory of the claim whose payment it guarantees.
The reservation of ownership is agreed in writing.
Reserved ownership of a fungible asset may be exercised, up to the amount of the outstanding claim, over assets of the same nature and quality held by the debtor or on his behalf.
The incorporation of an item of movable property subject to a retention of title into another item of property does not preclude the creditor’s rights where those items of property can be separated without suffering damage.
In the absence of full payment on the due date, the creditor may request the return of the property in order to recover the right to dispose of it. The value of the property taken back is set off, by way of payment, against the balance of the secured debt. Where the value of the property taken back exceeds the amount of the secured debt still due, the creditor owes…
In the event of alienation or loss of the property, ownership is carried over to the debtor’s claim against the sub-purchaser or to the insurance indemnity subrogated to the property. The sub-purchaser or the insurer may then set up against the creditor the defences inherent in the debt as well as defences arising from its relationship with the debtor before it became aware of the carry-over.
Ownership of movable property or a right may be assigned as security for an obligation under a trust agreement entered into pursuant to Articles 2011 to 2030. The secured obligation may be present or future; in the latter case, it must be determinable. By way of derogation from the’article 2029, the death of the natural person settlor does not terminate the trust contract created under this section.
In the event of a trust entered into by way of security, the contract shall mention, on pain of nullity, in addition to the provisions set out in Article 2018, the debt secured.
In the absence of payment of the secured debt and unless otherwise stipulated in the trust agreement, the trustee, where it is the creditor, acquires the free disposal of the property or right assigned by way of security. Where the trustee is not the creditor, the creditor may require the trustee to surrender the property, which it may then freely dispose of, or, if the trust agreement so provides, to…
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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