Define: Nantissement

Nantissement is a French legal term that refers to a type of security interest or pledge over movable property.

Nantissement can be established over various types of movable property, such as vehicles, equipment, inventory, intellectual property rights, and bank accounts.

Nantissement is created through a written agreement between the debtor (owner of the property) and the creditor (party receiving the security interest). This agreement must be registered with the appropriate authorities to be enforceable.

The purpose of nantissement is to provide security to a creditor by allowing them to have a priority claim over the pledged property in case of default by the debtor.

No, nantissement is specifically designed for movable property. For immovable property, other forms of security interests, such as mortgages, are used.

Yes, nantissement can be established over future property, provided that the agreement clearly identifies the property or the criteria for identifying it.

Yes, nantissement can be transferred to another party through an assignment or subrogation, subject to the consent of the debtor and compliance with legal requirements.

If the debtor defaults on their obligations, the creditor can enforce their rights by seizing and selling the pledged property to recover the outstanding debt.

Yes, nantissement can be terminated before the debt is fully repaid if the debtor fulfills their obligations or if the parties agree to terminate the agreement. Termination must be registered to remove the security interest.

The legal consequences of nantissement include the creation of a priority right for the creditor over the pledged property, the ability to enforce the security interest in case of default, and the potential for the creditor to recover their debt through the sale of the pledged property.