right of pledge

A right of pledge (the debtor) gives the pledgee A pledgee (or pledge giver) is a creditor who has been given a right of pledge by a debtor (the pledgor) as a security for the debt of the pledgor. 
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pledgee
(the creditor) a security until payment above other creditors by giving possession of assets The assets of a Dutch company reflect the value of all that the company possesses
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assets
. Under Dutch law the pledgee has the right of summary execution. This means that he is allowed to sell the pledged goods in case of default of the debtor and use the proceeds to recover the debt. Unlike other creditors, the pledgee does not have to obtain a court order first to do so. The pledgee also has a special position when the debtor goes into bankruptcy.

Pledge in the Netherlands

In the Netherlands, all assets can be encumbered by a pledge, apart from registered property (which can be mortgaged). Often a pledge is established on movable property (such as inventory) or on accounts receivable. According to Dutch law, a right of pledge on a movable good, a bearer right, or on a right of usufruct of such a good/right, is established by bringing the good or the bearer paper in possession of the pledgee (or of a third person if so agreed by parties). 

Different pledges

A pledge on a right to order or on a right of usufruct thereof also requires an endorsement. A right of pledge on other goods is established in a similar manner as is required for the transfer of title of that good.

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Synonyms: pledge agreement

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