Panttioikeuden

Panttioikeus is a security right in Finnish private law that secures an obligation by giving the creditor a claim over a pledged asset. If the debtor defaults, the creditor has the right to realize the pledged asset to satisfy the claim, typically by selling the asset and using the proceeds to cover the debt. The debtor normally retains ownership of the asset, but may lose possession or control depending on the agreement and the type of collateral.

Panttioikeus can attach to different kinds of collateral. It may concern movable property (such as equipment or receivables) and, in the case of real estate, is usually realized through a mortgage-like security known as kiinnitys, which is entered in a public register to establish priority. Some collateral arrangements are documented in a panttikirja or other written pledge agreement, and certain arrangements require formal registration or notification to be fully enforceable against third parties.

Enforcement steps are governed by applicable procedural rules. Upon default, the creditor may initiate enforcement procedures to realize the collateral, often through a sale or public auction. The proceeds are first used to cover enforcement costs, with the remainder allocated to satisfy the secured claim; any surplus generally returns to the debtor. In insolvency situations, panttioikeus provides a secured claim with priority up to the value of the collateral, affecting the distribution of assets among creditors.

Panttioikeuden tyypit and purposes vary, but the core function is to enhance the lender’s security by providing a recourse to specific assets if the debtor fails to meet obligations. Examples include a bank’s lien on a car loan or a supplier’s security on machinery, and, for real estate, a registered kiinnitys.