International Law

PLEDGING FUTURE RECEIVABLES IN THE DUTCH CARIBBEAN

By Karel.Frielink

Bankruptcy pledgor will prevent valid pledge

Under the laws of the Netherlands Antilles, a right of pledge may be established on future receivables, however, the right of pledge on a future receivable will only be perfected the moment such a receivable comes into existence, provided that, at such a time, the pledgor is authorized to dispose over or encumber such receivables (?beschikkingsbevoegd?).

Therefore, if a pledgor has been granted a suspension of payments (?surséance van betaling verleend?) or has been declared bankrupt (?failliet verklaard?) in the Netherlands Antilles, before a future receivable, directly resulting from an existing legal relationship, comes into existence, such receivable will not be subject to the created security right and will therefore become part of the bankruptcy estate of such pledgor.

Karel Frielink
Attorney (Lawyer) / Partner

Full post as published by Karel's Legal Blog on October 25, 2008 (boomark / email).