Pledge on receivables with a focus on the funds credited to the bank account

Depositor's pecuniary claim against the bank for the return of the funds credited to his bank account proves to be a significant tool of security, especially for the banks. Banks carry out their business by lending to their customer and accordingly, they demand to be secured by way of a pledge right that would encumber their customers' or third parties' assets. In practice these pledges would be on movable or immovable properties; whereas the receivables are more likely to be assigned to the bank by way of security. The pledge on depositor's receivable against the bank manages to be a pledge right on a receivable that serves as an ordinary banking practice despite the domination of assignment by way of security. This research focuses on the constitution of pledge on the funds credited to the bank account; the rights and obligations that stem from it and its termination. Since the regulation concerning the pledge on movables will apply where the regulation on pledge on receivables is silent, each of these issues will be explained first in terms of pledge on regular receivables and, if necessary, pledge on movables. These explanations will then be followed by the discussions held for issues that require a certain attention due to the nature of pledge of the funds credited to the bank account.