Glossary

Pledges

A pledge is a contractual guarantee whereby the debtor is dispossessed of one of its assets in favour of the creditor in order to guarantee their debt. When the asset consists of moveable goods, it is referred to as a pledge. When the asset is immoveable, it is called an antichresis (replaced by mortgage as it does not involve the seizure of the asset by the debtor). There also exists a non-possessory pledge on a business’s goodwill. This pledge covers all of the tangible and intangible assets that make up this goodwill.

Updated 30/07/2018

Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at glossary@tcm.be.