Zekerheidsrecht
Security right
A security right is a proprietary right that enables a creditor to seek recourse against a specific asset of the debtor in the event of default.
A security interest confers upon its holder a priority position in the enforcement of one or more assets of the debtor, thereby increasing the prospects of full satisfaction of the claim. Well-known forms under Dutch law include the mortgage over immovable property and the pledge over movable property or receivables.
This right plays a significant role in credit and financing transactions. It reduces the risk for the lender and thereby facilitates the granting of loans on acceptable terms.
In practice, a security interest is frequently created upon the conclusion of a loan agreement, after which it is registered by notarial deed or by other means of registration in order to be effective against third parties.
“The bank has established a pledge over the company's inventories and receivables as security.”
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