Clifford Chance

Reform of the treatment of pledge of future credits in insolvencies

22 September 2015

The legislator is looking to take advantage of the new Public Sector Legal Regime Act to reform the heavily criticised Article 90.1.6º of the Insolvency Act, on the pledge of credit rights. This reform would entail conferring a special privilege on pledges of credit rights, provided that the legal relationship from which the credits arise exists at the moment the pledge is created, albeit without the need for registration. The authorisation of the government will also be required in order to pledge credits derived from a concession contract, such as the RPA.

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