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Luxembourg law pledge: Difference between revisions
→The Acknowledgement
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:''The [[Pledgor]] pledges the Pledged Assets in favour of the [[Pledgee]], who accepts, as first-priority pledge (''gage de premier rang'') for the due and punctual discharge in full of all of the Secured Obligations. | :''The [[Pledgor]] pledges the Pledged Assets in favour of the [[Pledgee]], who accepts, as first-priority pledge (''gage de premier rang'') for the due and punctual discharge in full of all of the Secured Obligations. | ||
====The Acknowledgement==== | ====The Acknowledgement==== | ||
The Custodian will need to acknowledge that it has notice of the [[pledge]]. This will [[perfect]] the [[security]], and is a key part of the deep magic of security interests. A similar requirement exists in most jurisdictions. | The Custodian will need to acknowledge that it has notice of the [[pledge]]. This will [[perfect]] the [[security]], and is a key part of the deep magic of security interests. A similar requirement exists in most jurisdictions. The pledgor may instruct the Custodian to mark the assets as pledged consistently with the Financial Collateral Law | ||
''And'' that’s about it: rather like going to a Christening. the main event is now over, and you now have to sit in the church for three quarters of an hour croaking hymns, listening to the choir warble through some psalms, the vicar grumble through the same tedious sermon he’s been doling out for thirty years etc. So strap yourselves in. | |||
====[[Reps and warranties]]=== | |||
What self-respecting legal contract would be complete without [[representations and warranties]]? | |||
====Enforcement==== | |||
There will be specific Luxembourg law requirements about how you enforce the pledge, should it ever come to that. The pledgee may: | |||
*[[Appropriation|Appropriate]] the assets (with details as to how they are valued for that purpose) | |||
*Sell the assets privately on normal commercial terms (“''conditions commerciales normales''”) | |||
*Sell them across exchange or publicly | |||
*Ask a court to give them to the Pledgee against discharge of the secured obligations | |||
*Set them off against secured obligations | |||
====Boilerplate==== | |||
Expect pages and pages of guff: [[continuing security]], cumulative with other security interests, not prejudiced by delay, waiver or indulgence, amendment, or any other act that might act to prejudice the security otherwise. the [[pledgor]] will have to waive its rights under the [[Luxembourg Civil Code]], and also hold the pledgee harmless unless it has been [[Negligence, fraud or willful misconduct|negligent, fraudulent or wilfully naughty]]. | |||
then: Costs, notices, amendments, severability, succession, governing law. | |||
{{seealso}} | {{seealso}} | ||