Security Agreement German

With regard to certain subsidiary security rights (legally inextricably linked to the secured claim), it is customary to create, in addition to the underlying secured claim, a parallel debt, i.e. a second claim in favour of the agent as abstract recognition of the debt equal to present or future payment obligations to the financial parties. In order to avoid the risks of double payment, the guarantee agent may not realize his claim on the abstract recognition of the debt to the extent that the original secured claim is satisfied. The parallel debt structure ensures that certain subscription rights (e.g.B. Seizures, guarantees) are not terminated under the law if, in the event of a modification of a syndicated credit agreement involving the termination of the initial secured claim when creating a new claim with the purchaser, the law does not expire. While the validity of parallel debt structures is generally recognized in the German legal literature, it has not yet been confirmed by the German courts. Stocks and bank accounts are usually mortgaged. Financial institutions generally insist on using their own templates for entering accounts held with them. Receivables, receivables and intellectual property rights may be assigned for security purposes and ownership of fixed assets (such as movable property and equipment) is often transferred for security purposes.

Real estate may be encumbered by a mortgage or basic fees. 3.2 Is it possible to safeguard assets through a general guarantee agreement or is an agreement required for each type of asset? In short, what is the procedure? Yes. The usual way to create security rights in the receivables and receivables of the debtor is an assignment of security, which is usually in writing. As a rule, the debtor does not need to be informed to establish a valid order and, according to market practice, many orders are not disclosed. However, notification is required for perfection purposes. Since the debtor can continue to effectively fulfil its obligation by paying the former creditor (unless the debtor is aware of the assignment to the new creditor), it may be advisable to inform the debtor of the assignment in order to reduce this risk. . .

.