Registration with the clerk of the commercial court must be undertaken within fifteen days of the instrument establishing the pledge. Note that this instrument itself must be concluded within two months from delivery.

Registration must be undertaken:

- if the debtor is a business owner, with the clerk of the commercial court of the jurisdiction in which the business assets are operated;

- if the debtor is not a business owner, with the clerk of the commercial court of the jurisdiction in which the debtor is domiciled, or if it relates to a person registered in the trade directory, in the jurisdiction in which the artisanal assets are located (Article L. 525-16 of the Commercial Code).

THE LEGAL INSTRUMENT

Such relates to the instrument establishing the pledge. A simple promise of pledge is not sufficient. When the pledge is consented to by a seller of machinery and equipment, it is consented to in a sale agreement. When the pledge is consented to by a lender who advances the funds necessary for payment of the seller, such is set forth in the loan agreement.

This instrument must reference, under penalty of nullity, that the amounts paid by the lender are intended to insure payment of the acquisition price of the acquired property. Such must be set forth in the body of the instrument and each of them must be described in a precise manner, in order to distinguish them from other similar property belonging to the business. The instrument also indicates the fixed or indicated location of the property, or otherwise, that it is subject to be moved.

If the legal instrument is under private seal, an original bearing the signatures of the parties and the reference that registration is on file with the clerk of the commercial court.

THE REGISTRATIONS FORMS

Registration form for pledge of tools and material

The relevant form must be filed in duplicate with the clerk of the court.

Registration maintains the security for five years. It may be renewed (twice) prior to the expiration of this period. The renewal formalities are the same as those defined for registration, however the creditor only files two forms specifying that the required registrations are in renewal of the prior ones.

Renewal must exactly duplicate the first registration. In the event of corrections of names, the amount of the debt and designation of covered elements, the clerk of the court will require documentary evidence.

Necessary for reference in the margins of the registration: precedence and subrogations, evidence of which must be provided to the clerk of the court by certified or recorded instruments.

In the event of movement of funds, the seller or secured creditor must, within fifteen days of notification made to him by the owner or from the day when he had knowledge of the movement, to make reference, in the margins of the existing registration, the new site of the funds, and, if such was transferred to another jurisdiction, to carry forward to its primary registration date with reference to the new site on the register of the clerk of the court of such jurisdiction.

Apart from cases expressly anticipated by law, other modifications can be marginally referenced (ex.: change in name of one of the parties or of debt restructuring).

Note that the subrogation reference must be marginally indicated in the registration within fifteen days of the establishing instruments.

(Costs including tax)

Payment to the order of the relevant GREFFE DU TRIBUNAL DE COMMERCE.

REGISTRATION (including postal costs)

For a debt of less than 20,800 euros: 28.03 euros.

For a debt equal to or exceeding 20,800 and less than 41,600 euros: 102.91 euros.

For a debt exceeding 41,600 euros: 151.27 euros.

REFERENCE TO PRECEDENCE, SUBROGATION AND RENEWAL (including postal costs)

For a debt of less than 20,800 euros: 13.99 euros.

For a debt equal to or exceeding 20,800 euros: 31.15 euros.

MARGINAL REFERENCES (including postal costs)

For all amounts: 7.18 euros.