Pledge Of Trade Funds
LexInter | June 23, 2002 | 0 Comments

Pledge Of Trade Funds

Chapter II: Pledge of the business
Article L142-1
Business assets may be the subject of pledges, without any other conditions and formalities than those prescribed by this chapter and Chapter III below.
The pledge of a business does not give the pledgee the right to be allocated the fund in payment and up to the due amount.
Article L142-2
The following are only likely to be included in the pledge subject to the provisions of this chapter as forming part of a business: the sign and trade name, lease rights, customers and goodwill, commercial furniture, equipment or tools used to operate the fund, patents, licenses, trademarks, industrial designs, and generally the intellectual property rights attached to them.
The certificate of addition subsequent to the pledge which includes the patent to which it applies follows the fate of this patent and forms part, like it, of the pledge constituted.
In the absence of an express and precise designation in the deed which constitutes it, the pledge only includes the sign and the commercial name, the right to the lease, the customers and the goodwill.
If the pledge relates to a goodwill and its branches, these must be designated by the precise indication of their registered office.
Article L142-3
The pledge contract is evidenced by an authentic deed or by a private deed, duly registered.
The privilege resulting from the pledge contract is established by the sole fact of registration in a public register kept at the clerk of the commercial court in whose jurisdiction the fund is operated.
The same formality must be completed at the registry of the commercial court in whose jurisdiction each of the branches of the fund included in the pledge is located.
Article L142-4
(Law n ° 2005-845 of July 26, 2005 art. 1 I Official Journal of July 27, 2005 in force on January 1, 2006)
The registration must be made, on pain of nullity of the pledge, within two weeks of the date of the constituting act.
In the event of judicial reorganization or liquidation, Articles L. 632-1 to L. 632-4 are applicable to pledges of business assets.
Article L142-5
The rank of pledge creditors among themselves is determined by the date of their registration. Creditors registered on the same day compete.

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