Chapter III: Pledging of intangible movables.

A pledge is the assignment, as security for an obligation, of an intangible movable asset or a group of intangible movable assets, present or future. It is conventional or judicial. Judicial pledging is governed by the provisions applicable to civil enforcement proceedings. Conventional pledging which relates to claims is governed, in the absence of special provisions, by this chapter. That which relates to other intangible movables is subject, in the…

On pain of nullity, the pledge of a claim must be concluded in writing. The secured claims and the pledged claims are designated in the deed. If they are future, the deed must allow them to be individualised or contain elements allowing this such as the indication of the debtor, the place of payment, the amount of the claims or their valuation and, if applicable, their due date.

A pledge of a claim may be made for a specific period of time. It may relate to a fraction of a claim, unless the claim is indivisible.

The pledge extends to the accessories of the claim unless the parties agree otherwise.

Where the pledge relates to an account, the pledged claim means the credit balance, whether provisional or definitive, on the day the security is realised subject to the regularisation of transactions in progress, in accordance with the procedures laid down by civil enforcement procedures. Subject to this same proviso, in the event of the opening of safeguard, receivership, liquidation or overindebtedness proceedings against the grantor, the rights of the pledged…

A pledge of a claim, present or future, takes effect between the parties and becomes enforceable against third parties on the date of the deed. In the event of a dispute, proof of the date lies with the pledged creditor, who may prove it by any means.

Where the same claim is the subject of successive pledges, the ranking of creditors is governed by the order of the deeds. The creditor who is first in line has recourse against the creditor to whom the debtor would have made a payment.

To be enforceable against the debtor of the pledged claim, the pledge of the claim must be notified to him or the debtor must intervene in the deed. Failing this, only the pledgor validly receives payment of the claim.

After notification, the pledged creditor enjoys a right of retention on the pledged claim and has the sole right to its payment both in principal and interest. The pledged creditor, like the pledgor, may pursue enforcement, with the other duly informed.

The debtor of the pledged claim may set up against the pledgee the defences inherent in the debt. He may also raise defences arising from his relationship with the pledgor before the pledge became enforceable against him.