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The main development under the Commercial Collateral Act with regard to collateral deposits is that it is now possible to pledge current and future deposits to the bank account. This is particularly important if collateral is to be supported via deposits in current and operational accounts, where deposits and withdrawals are made regularly and continuously. Unless the counterparty and the secured creditor agree otherwise, the Pendor is not allowed to maintain the bank account. However, the Commercial Pledge Act has granted the secured creditor (if an event occurs that requires the performance of the pledged asset) the right to enjoy preference over the other parties involved in the purchase of the pledged asset in question. The price that the pawnshop would have to pay for the purchase would be the same as for the valuation of the property, unless another buyer offers an amount higher than the appraisal price of the property. This article deals with the main features of the Commercial Pledge Act and explains the Act and its implementing regulations. The article will also discuss how the Commercial Pledge Act will help resolve various issues related to the enforcement of pledged assets. The main difference between Roman law and English law is that certain things (for example. B clothing, furniture and tillage instruments) cannot be pledged under Roman law, whereas there is no such restriction in English law. In the case of a pledge, the special property passes to the pledge, sufficient to maintain a legal action against a wrongdoer, but the general property, that is, the property subject to pledging, remains in the privilege. [3] The value of the pledged assets is determined by the procedures and rules agreed upon by the parties to the pledge agreement. In the event that there is no agreement between the secured creditor and the pfändor, the valuation is carried out by a professional (certified) appraiser. Each party would have its own expert; The final evaluation price would be the average of the evaluation prices presented by the two evaluators.

The Commercial Pledge Act defines the constituent elements of a collateral contract. Key elements include (a) if the pledged asset does not exist, the intended description, approximate date of existence and approximate value of the pledged asset are indicated; (b) the general description, amount or ceiling of the covered obligation is indicated; and (c) the maturity date or expected maturity date of the secured debt should be indicated. It is important to note that the Commercial Collateral Act applies to collateral agreements that secure « commercial debts ». A commercial debt is a debt that arises from commercial or professional activities. A loan to finance a company`s purchase of a computer server to store its files would be a business debt. A loan to finance an individual`s purchase of a computer server to store personal data would not constitute a commercial debt. The provisions of the Commercial Pledge Act would apply to the first scenario, but not to the second. It is important to mention that the self-help clause does not allow for the inclusion in the agreement of a provision that allows the secured creditor to take direct possession of the pledged assets of the secured debt in the event that the debtor does not pay the debts. Such a provision would be void but would have no effect on the rest of the agreement.

The Law on Commercial Pledge defines a floating pledge or royalty as a pledge created on movable property without determining the elements of movable property. In fact, the counterparty and the secured creditor are not required to identify the specific assets that are the subject of a pledge. Stocks and raw materials are part of a floating lot. A floating fee must be registered in the Unified Register of Commercial Collateral for the guarantee to be effective vis-à-vis third parties. The Pledgor is obliged to submit monthly reports on the available stock and whether the quantity must not fall below 50% of the required pledged property, unless the parties have agreed otherwise. The laws of Scotland in the United States are generally consistent with those of England with respect to commitments. The main difference is that in Scotland and Louisiana, a pledge can only be sold with the judicial authority. In some U.S. states, the common law as it existed outside of the Factor Acts is still respected, but in others, the factor has a more or less limited power to issue one security per pledge. [3] The Ministry of Trade and Investment has published the Draft Law on the Regulation of the Unified Register of Trade Commitments, which aims to register commitments electronically so that the public can express their opinions and comments.

The regulation is expected to be published shortly. In any case, the appointment of an enforcement agent is essential if there are several secured creditors. This is because the execution order (we discussed this later in this article) is always issued under the name of the enforcement agent in question. The release of the new Trade Engagement Law in April this year responded to an extremely urgent and long-awaited demand for credit support in the corporate sector in the Kingdom of Saudi Arabia. The Act establishes a comprehensive and comprehensive mechanism for the prompt recovery of claims secured by liens and the reduction of associated risks; and thus encourage banks, financial companies and others to engage confidently in lending activities. All existing pledge agreements should be brought into compliance with the Commercial Pledge Act within six months of the promulgation of the law, i.e. before the 3rd week of October 2018. However, the Law on Commercial Collateral allows any person (even if he does not have the license of the MOCI) to act as an enforcement agent if all secured creditors agree that he can be their representative when the enforcement proceedings are ongoing.

Since the pledge is for the benefit of both parties, the secured creditor is required to exercise only the usual care for the pledge. The secured creditor has the right to sell the lien if the pledge does not make the payment at the agreed time. The ownership of a third-party buyer is not guaranteed after an illegal sale, except in the case of goods that go through delivery, such as money or negotiable guarantees. In all other cases, individuals must prove that they are a bona fide buyer, for a (good) value, without notice (BFP). In the case of certain types of property, as defined in the detailed laws of the jurisdiction, such a new owner (BFP) must first have consulted (before the purchase) in order not to disclose any other property, and then have made a public announcement or registered his title in a register recognized by the court before the pfändor. After an illegal sale by a secured creditor (e.B. if the secured creditor has complied with its payment schedule and has the right to redeem the goods if it continues to do so), the secured creditor cannot claim the lien/value of the lien without an offer (full payment) of the amount due (secured by the lien). [3] Thar is contrary to the General Mortgage Act, which allows most mortgage debtors to maintain a cause of action (lawsuit) in the event of an illegal sale in order to return the property to their eligible property if they update the arrears.

The Trade Engagement Act has changed the landscape of creating security on « movable property » in Saudi Arabia. These changes will impact banking law and practice in the Kingdom and offer a wider variety of options in structuring credit transactions. It is important to note that lien agreements must comply with the Business Pledge Act within six months of the date the Act comes into force. The law also establishes a full and complete procedure for the expedited enforcement of security rights in movable property. These procedures would reduce the risks associated with debt collection, thereby encouraging banks, financial institutions and other lenders to participate confidently in credit markets. In earlier medieval law, especially in Germanic law, there were two types of pledges that were either possessive (cf. . . .

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