The advantages of the Security Fiducie

The security fiducie has undeniable advantages over conventional security rights.

In the first place, the lender beneficiary of the assets placed in fiducie may be allocated the assets to be repaid any balance corresponding to the value of the property less the amount of the debt. This without any judicial authorization.

Alternatively, the beneficiary will be able to request that the property be sold to a third party without going through a lengthy and costly foreclosure procedure.  

This sale will be subject to an expertise of the value of the property, it being specified that the property may be sold for a price lower than the value established by an expert if no buyer can be found at the price indicated by the expert. This sale below the price of the expertise, will be under the responsibility of the seizing beneficiary.

In insolvency proceedings, the principle is that the beneficiary of the security is exempt from the effects of insolvency proceedings and in particular from the suspension of proceedings or the prohibition of payments of debts prior to the opening judgment.

He will therefore be able to sell the property and be paid in priority.

However, if the property placed in fiducie has been left at the disposal of the debtor, under a disposition agreement, the receiver may request the continuation of this disposition agreement, which will prevent the sale of the property placed in fiducie. 

However, this will oblige the receiver to pay the due deadlines. Otherwise, the provision agreement will end and the beneficiary creditor may sell the property.

Finally, the court will not be able to require a creditor benefiting from a security fiducie to abandon, reduce or capitalize its claim, particularly in the context of an assignment plan.

In summary, the security fiducie allows a creditor to be paid more quickly, for the entirety of his claim, even in the event of collective proceedings of the debtor.