Request for opinion on the lifting of the ban on pledges pending before Council of State

op 2020-12-18

In 2018, it was announced that the government wants to do away with agreements between companies which rule out the transfer or pledging of claims. Why? Because such agreements preclude the use of those claims as security for finance provided by a bank. After a lengthy delay, on 11 December 2019 the request for an opinion on the legislative proposal was brought before the Council of State.


A wide-reaching consultation took place midway through 2018. I also responded, specifically requesting consideration of the negative pledge issue, and for the legislative proposal to be extended to consumers. After all, agreements with consumers (private individuals who are not acting within their trade, business, craft, or profession) stipulating that claims may not be pledged also deter banks from providing finance. Some examples that come to mind are the pledging of rents by consumers who lease properties. We must now await the Council of State’s opinion.