Possessory pledge

A possessory pledge secures a claim by placing movable property under the control of the creditor or a third party. Swiss law generally requires the pledgor to be deprived of exclusive possession, because publicity replaces registration for many movable pledges. The debtor may remain owner but cannot freely dispose of the asset in a way that defeats the security. If the secured claim is not paid, the pledge may be realised through the applicable enforcement procedure. Special rules apply to securities, claims, and commercial arrangements.