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Banking & Financial Services

20 April 2021
Thomas Boone Bank account pledges should be used with caution

France - Odi-se Avocats

Bank account pledges are often part of the security package in secured lending. To avoid the risk of the account being emptied prior to enforcement, practitioners have developed a blocking notice that may be delivered to the account holder where a default occurs. This aims to prevent the debtor from sweeping the account ahead of enforcement actions. However, following two recent court decisions, bank account pledges may not be as bulletproof as previously thought.

Authors: Thomas Boone, Matthieu de Varax
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