What Is A Bank Account Pledge AgreementOctober 14, 2021 3:06 pm
“With the exception of the deposit intended for investment, the cash deposit shall be deemed to be a debt which may be deducted from the debt which may be owed to the bank by the depositor and any other arrangement shall be null and void.” However, in the context of fungible assets, several articles of the Act, in particular Articles 1499, 368 and 370 of Federal Law No. 5 of 1985, relating to civil transactions (Civil Code), come into play in order to lift the prohibition that allows the bank to acquire directly the pledged funds due to the nature of the pledged assets. In the context of obligations of the same nature, nature, nature, nature and strength and weakness, mandatory compensation and consensual compensation may be agreed in disregard of the prohibition laid down in Article 176 of the Commercial Code. Since the pledged asset is a sum of money, it can be valued accurately and the lender cannot make an excessive profit at the expense of the borrower. The borrower must continue to report and control all income from the pledged assets. However, since they were not required to sell their portfolio to make the down payment, they will not enter a higher tax income bracket. Once the loan is repaid and the debt is fully satisfied, the lender transfers the pledged asset to the borrower. The type and value of assets pledged for a loan are usually negotiated between the lender and the borrower. Pledged receivables must be cashable and transferable. TCL stipulates that collateral can only take place through transferable rights. If this provision is not fulfilled, no pledge of the corresponding right can be established.
The transferability condition means that the transfer of deposits is not prohibited by law or agreement. . . .