����ֱ��

A Hypothecation Agreement lets you pledge assets as collateral for a loan while keeping possession of them. In Belgian financial markets, these agreements follow strict rules under the Financial Collateral Law of 2004, offering lenders security without physically transferring the assets.

Banks and businesses commonly use hypothecation when securing business loans, mortgages, or investment accounts. The agreement gives lenders a legal claim to specific assets - from real estate to securities - and outlines their right to seize these assets if the borrower defaults. Belgian law makes these agreements particularly strong, as they survive bankruptcy proceedings and take priority over other creditors' claims.

Use a Hypothecation Agreement when seeking business financing while needing to keep your assets operational. This agreement proves especially valuable for Belgian manufacturers who need working capital but can't afford to surrender their equipment, or for traders who want to leverage their investment portfolio without selling positions.

Belgian banks typically require these agreements for commercial property loans, inventory financing, and securities-based lending. The agreement becomes crucial when expanding operations, funding seasonal inventory, or managing cash flow gaps. It offers more flexibility than traditional collateral arrangements, as you maintain control of your assets while accessing needed capital under Belgian financial regulations.

• Loan Hypothecation: Used mainly by Belgian banks for standard business loans, securing movable assets like machinery or inventory as collateral
• Securities Hypothecation: Common in investment banking, allowing investors to pledge their securities portfolio while continuing to trade
• Property Hypothecation: Specifically designed for commercial real estate financing, with special provisions for building maintenance and tenant rights
• Multiple Asset Hypothecation: Covers various asset types under one agreement, popular among large enterprises with diverse collateral needs
• Revolving Hypothecation: Enables businesses to repeatedly borrow against the same assets, typically used for ongoing trade financing

• Commercial Banks: Draft and enforce Hypothecation Agreements, acting as primary lenders and securing their interests against borrower assets
• Business Owners: Sign as borrowers, pledging company assets while maintaining operational control
• Legal Counsel: Review and customize agreements to comply with Belgian financial regulations and protect client interests
• Investment Firms: Use these agreements for securities-based lending and portfolio management
• Notaries: Authenticate and register agreements involving real estate under Belgian law
• Asset Managers: Monitor compliance with agreement terms and manage hypothecated securities portfolios

• Asset Documentation: Gather detailed descriptions and valuations of all assets to be hypothecated, including ownership proof
• Borrower Details: Compile company registration documents, financial statements, and tax compliance certificates
• Loan Terms: Document the loan amount, interest rates, repayment schedule, and specific conditions
• Risk Assessment: Evaluate asset depreciation rates and market conditions affecting collateral value
• Legal Requirements: Check Belgian registration requirements for different asset types
• Stakeholder Input: Get internal approvals from finance teams and board members before finalizing
• Document Generation: Use our platform to create a legally compliant agreement that includes all mandatory elements

• Party Details: Full legal names, addresses, and registration numbers of lender and borrower
• Asset Description: Precise identification of hypothecated assets, including serial numbers or property details
• Loan Terms: Specific amount, interest rates, and repayment schedule under Belgian financial regulations
• Default Provisions: Clear conditions triggering default and lender's enforcement rights
• Maintenance Obligations: Borrower's duties to preserve asset value and maintain insurance
• Registration Requirements: Compliance with Belgian movable asset registry procedures
• Governing Law: Explicit reference to Belgian Financial Collateral Law and jurisdiction
• Execution Details: Signature requirements and notarization specifications

A Hypothecation Agreement differs significantly from a Debt Assumption Agreement in how they handle financial obligations. While both involve debt arrangements, their core purposes and mechanisms are distinct under Belgian law.

• Asset Control: Hypothecation lets borrowers keep using pledged assets while securing a loan; Debt Assumption transfers the debt obligation entirely to a new party
• Legal Structure: Hypothecation creates a security interest without ownership transfer; Debt Assumption changes the responsible party for existing debt
• Risk Profile: Hypothecation maintains the original borrower's liability with assets as backup; Debt Assumption completely shifts liability to the assuming party
• Usage Context: Hypothecation suits ongoing business operations needing asset-backed financing; Debt Assumption typically occurs in corporate restructuring or property transfers
• Registration Requirements: Hypothecation needs specific asset registry filing in Belgium; Debt Assumption focuses on documenting the transfer of obligations