The reform of the legal framework of security interests over movable assets was seen as long overdue. The transition from the previous system, based on the dispossession of the pledged assets, to a new dispossession-free system based on online registration will give Belgium a system just as modern as the ones in neighbouring countries.
This reform was adopted in July 2013. The new Act will enter into force on 1 January 2018 and will turn the established practices upside down and will oblige lenders to overhaul their credit documentation. Moreover, banks will quickly have to review all their pledges over business assets. In fact, the latter pledges will only retain their rank if the necessary actions are taken within 12 months following the entry into force of the new Act.
The new rules will apply without prejudice to specific provisions of other legislation, such as the law on financial collaterals.
Our brief guide provides a summary of the core parts of the reform in the form of a Q&A.
If you have any questions or are interested to follow-up, please contact us: Arnaud Van Oekel and Benoît Vandervelde