6 February 2012

Dutch Supreme Court accepts floating charge

In recent years Dutch banks have established a practice of creating undisclosed rights of pledge (stil pandrecht) on all current and future receivables of their borrowers in an easy way and without the borrower’s involvement.

In the Supreme Court’s ruling of 3 February 2012 (HR 3 February 2012, LJN BT6947), this practice was unsuccessfully put to the test by a bankruptcy trustee, who contested the alleged right of pledge of ING Bank on receivables of its bankrupt client.

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