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Law firm in Paris : When can a lender's preferential right (privilège de prêteur de deniers, or PPD) be taken as guarantee?

When can a lender's preferential right (privilège de prêteur de deniers, or PPD) be taken as guarantee?

The lender's preferential right is a security interest on the property.

This security is unknown in most States.

In an international context the PPD cannot always be used.

The validity of the PPD assumes that it is recognised under the law of the country where the property is located (French law) and under the law applicable to the loan agreement.

Conversely the lender's preferential right will not be recognised if it unknown in either of these two law systems.

If the property is located in France and if French law is applicable to the loan agreement, a PPD may be taken