How to request the registration of a court-ordered Business pledge

Principle

The creditor of a business owner may, if he believes that there is a serious risk that he will not be able to recover the debt, request that the President of the Court of First Instance authorise the registration of an interim charge against the debtor’s business in the Trade and Industry Register.

If the President of the Court of First Instance accepts that recovery of the debt is threatened, he issues an order authorising the creditor to register an interim charge.

Then, within three months of the interim charge being registered, the creditor must bring the case before the court to seek a final charge.

Conditions

The interim registration of a court-ordered pledge is subject to the submission of a copy of the order made by the President of the Court of First Instance and the filing of two court-ordered pledge registration forms.

The interim charge must be registered within two weeks of the court order, otherwise it becomes void.

The final charge must be registered within three months of the date on which the court decision has the authority of res judicata, in other words when it is no longer subject to appeal. If the final charge is not registered in time, the interim charge becomes retrospectively void.

The final registration of a court-ordered pledge is subject to the submission of a copy of the Court’s judgement and the filing of two court-ordered pledge registration forms.

To get the court-ordered pledge registration form you can either:

• Download it here:
  Formulaire Nantissement Judiciaire (355-0057_01-2014)

  PDF87.6 kB
• Or collect it from the Trade and Industry Registry

The President of the Court of First Instance’s order must be provided for an interim charge, and the Court’s final judgement must be provided for a final charge.

The completed forms, accompanied by the President of the Court of First Instance’s order or the Court’s judgement, must be submitted to the Trade and Industry Register in duplicate.

A registration fee accounting for 0.01% of the amount of the guaranteed debt must be paid.