Chapter II: Pledging of business assets.

Businesses may be pledged, without any conditions or formalities other than those prescribed by this Chapter and Chapter III below. The pledge of a business does not give the pledged creditor the right to have the business assigned to him in payment and up to the due amount.

Only the following may be included in the pledge subject to the provisions of this chapter as forming part of a business: the sign and trade name, the right to the lease, the clientele and goodwill, the business furniture, the equipment or tools used in the operation of the business, the patents, licences, trade marks, industrial designs and models, and generally the intellectual property rights attached thereto. A certificate of…

The pledge contract is evidenced by a notarial deed or by a private deed. The preferential right resulting from the pledge contract is enforceable against third parties by the mere fact of registration in a register held at the registry of the competent commercial court, in accordance with procedures determined by decree of the Conseil d’Etat.

In the event of receivership or compulsory liquidation, articles L. 632-1 to L. 632-4 are applicable to pledges of goodwill.

The ranking of pledged creditors among themselves is determined by the date of their registrations. Creditors registered on the same day compete with each other.