Non-possessory pledge in Colombia: commercial regulation and movable property security interests

Abstract

One of the securities most used within the legal market is the non-possessorypledge from the creditor. This instrument allows for the debtor tomaintain the asset for its use and enjoyment and thus profit from it to beable to honor the contracted obligation. Although it was already contemplatedby the Commercial Code, it was fully regulated by Act 1676 of 2013on movable property security interests. This article intends to analyze theorigin of the instrument and to establish the way it is currently regulatedin Colombia, from a comparative law perspective and from the historicalbackground it has been developed in, with references to its regulation inthe French Civil Code and the principles of the Model Inter-American Lawon Secured Transactions. All the above starting from the instruments thatoriginated it, namely the pledge and the mortgage