Public auc­tions due to con­trac­tu­al pled­ges of rights

Public auc­tions due to con­trac­tu­al pled­ges of rights

Mova­ble pro­per­ty can be encum­be­red to secu­re claims. The pledge of rights can be estab­lished by a con­trac­tu­al agree­ment. The vali­di­ty of the crea­ti­on of the con­trac­tu­al pledge of rights is regu­la­ted in Sec­tions 1204 — 1208 BGB. This is par­ti­cu­lar­ly important for lom­bard tran­sac­tions of cre­dit insti­tu­ti­ons and pawn­shops.

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