nantissement

Nantissement is a real security interest used in civil and commercial law to secure performance of an obligation by attaching a lien to movable property or to certain rights. The debtor generally remains the owner, and the pledged asset becomes encumbered as collateral for the creditor’s claim.

Nantissement can cover tangible assets such as equipment, stock, or vehicles, as well as intangible rights like receivables, shares, IP rights, or bank deposits. It is created by a contract and may require formalities or registration depending on the asset type to be enforceable against third parties. The arrangement may be described as nantissement with dispossession, where the creditor takes possession of the pledged asset, or without dispossession, where the debtor retains possession while the security is created.

In case of default, the creditor can realize the pledged asset to satisfy the claim, subject to applicable procedures. In a sans dépossession form, enforcement typically proceeds by sale of the asset or assignment of the right, with proceeds applied to the debt. The debtor’s use of the asset may be limited during the enforcement process, and the creditor’s rights are intended to have priority over unsecured creditors for the value realized from the encumbered property.

Nantissement is commonly used in business financing to secure loans or credit lines, including security on inventories, receivables, equipment, or rights in intellectual property or bank accounts. It is distinct from mortgage (hypothèque) on immovable property and from other security instruments, offering flexibility through both possession and non-possession forms and by enabling creditors to reach various forms of movable assets and certain rights.