Pledge agreement

The global economic crisis virtually shuffled the cards and many so far profitable companies found themselves in red numbers. Entrepreneurs are short of money for the operation and further investments into the company. In such a situation, it is unthinkable to apply for a bank loan. But do not despair, since we have a solution, called Pledge register of movable assets. It constitutes a very modern way of pledging property, where the creditor may continue using the property for his activity and try re-gaining the lost positive balance of payments. The request for the registration of the lien can be filed (with any notary) by the pledger upon a written contract and in the other case by the pledgee. If the lien arises out of a judicial decision of the court or administrative body, the registration shall be made based on the decision of the competent court or administrative body having has set up the lien. The notary shall register the lien, changes in the data, the commencement of the execution of the lien and the deletion of the lien in Central Notary Register of Pledges based upon a request filed by an authorised person. This register is accessible to the public (on the web-pages of the Chamber of Notaries of Slovak Republic www.notar.sk) - and so the other entrepreneurs and banks know of his liabilities.

 

Notary = Security

If a pledge agreement is drawn up by the notary as a notarial protocol, it may constitute at the same time an executory title. This means that when the debt is not paid, the creditor does not need to go through the whole judicial proceeding and request the court to issue a distraint warrant, since this part has been achieved already by the notarial protocol. The court's task is now only to issue a decision on the commencement of the distraint.