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Going Concern Pledge Agreement

As a general rule, debtors of receivables from supplies and benefits are not informed of the existence of the pledge until the date of the execution of an execution event or other contractual trigger event. This means that security is not improved (and the creditor is not protected) until such a notification has been made. Finally, property rights are part of an ongoing business and may also be mortgaged as part of a general commitment to an ongoing business. Given this latter obligation and the fact that an authorization must be obtained from the government, the development of a pledge through an ongoing business or the universality of the companies is an expensive and time-consuming process (unless the credit institution concerned is already approved). Commitments regarding business and the current business universe are therefore rarely used in practice. However, the debtor of the receivables can effectively satisfy the debt in question if it is paid to the pawnbroker, provided that the latter is not exempt from the pledge. 12.2 If there has been another breach of the security and security agreement? The current concern represents a number of real rights, obligations and relationships. The deposit includes not only the company (the current company), but also everything it entails, including machinery, patents, trademarks, real estate, personal property (cars, equipment), shares in other commercial companies, receivables, etc. You can transfer some of these assets without selling the entire business. If the creditor wants to prevent the sale of these assets (for example. B of real estate), the assets must be registered in the register of real estate in Bulgaria. It is customary to add to the deposit ordering contract the notification of deposit and confirmation and notification of blocking and to agree the content between the parties and the account bank before the execution of the account contract. However, machines and equipment can also be mortgaged as part of a commitment to an object/commercial universe (trade fund gage).

In principle, a pledge between the parties will come into effect and will be automatically perfected from the date of execution of the pledge agreement to the debtor concerned and to third parties. If you pay the loan, the deposit must be terminated. In this regard, you must apply to have the registration removed from the trade register. You can do this yourself or with the help of a lawyer. The request for cancellation is accompanied by the creditor`s written consent, a document indicating how the undertaking will be executed and a statement of the accuracy of the reported circumstances.