Consent To Security Agreement

Gepostet von am Sep 15, 2021 in Allgemein | Keine Kommentare

The interest of the guarantee is governed to a large extent by Article 9 of the Uniform Commercial Code (CIT). This legislation ensures uniformity throughout the credit industry and draws the attention of debtors and creditors to their rights. Over the years, section 9 has become one of the most important elements of the code. It applies to all transactions that create an interest in the protection of personal property. Since default represents such a serious risk, debtors must be fully aware of their obligations when entering into security agreements. As stated above, a safeguard clause cannot be considered valid if the guarantee is not adequately described. In particular, descriptions of security rights should not be too broad or generic. An overly broad description may include a flat-rate description or rely on „all assets“ held by the debtor. While most parties prefer to perfect a backup interest by filing Form UCC-1, it is also possible to achieve perfection if the secured party has the guarantees.

Exception: ownership does not apply to intangible assets, such as for example. B receivables. Since many debtors prefer to continue to use or hold collateral, this approach is not common. Under Dutch (Dutch) law, the Dutch Civil Code describes the guarantee as an agreement by which a third party undertakes vis-à-vis a contractual creditor to fulfil the contractual obligations of a debtor. Such a contract of guarantee is concluded between the guarantor and the creditor. The debtor of the secured undertaking is not required to be a party to such an agreement. It is even conceivable that such a contract of suretyship could be concluded without the notice or agreement of the debtor. Article 7:850 of the Netherlands Civil Code provides that: 1. A contract of guarantee is an agreement under which one of the parties (hereinafter referred to as the guarantor) has undertaken vis-à-vis the other party (hereinafter the creditors) to fulfil an obligation that a third party (hereinafter the principal debtor) has or undertakes to pay to the creditor. 2.

As regards the validity of a contract of guarantee, it is not necessary for the principal debtor to be aware of the existence of the guarantee in question. 3. In the case of a contract of guarantee, the legal provisions relating to obligations jointly and severally liable for debt shall apply, in so far as the provisions of this Title do not deviate from them. As regards the nature of the obligation secured by a guarantee contract under Dutch law, Article 7:854 of the Dutch Civil Code: if the object of the principal debtor`s secured liability is a performance other than the payment of a sum of money, the guarantee contract shall be regarded as security for the creditor`s claim for damages in money, who is liable by the principal debtor, if he has not fulfilled his principal obligation vis-à-vis the creditor, unless the contract of guarantee expressly provides otherwise. . . .