CMS | Newsletter Italy 6 May 2016

Law Decree no. 59 of 3 May 2016, which is already in force although it will require formal conversion into Law within 60 days in order not to lose its validity.

Among the provisions of the Law Decree, of particular relevance is the introduction of a new type of floating charge, namely “non-possessory pledge”, provided for by art. 1 of the Law Decree.

Creditors are now entitled to obtain, as security for loans, a pledge over existing or future, identifiable assets of the debtor (or third party guarantor), which does not require the dispossession of the latter (or third party pledgor).