In accordance with Article 948 of the Algerian Civil Code, the pledge is a contract whereby a person undertakes an obligation, within the guarantee of his debt or the debt of the third party, to deliver to the creditor or the third party an object that can be retained until the payment of his debt.

This contract is established between the debtor (proprietor of business assets) and the pledge creditor, which is evidenced by an authenticated deed, except the contract issued for banks and financial establishment which may be made under private agreement.

Finally, it is worth noting that the pledge could refer to the business assets, tools, material and equipment (Articles 118 and 151 of the commercial Code).

• Registration of the business assets seller's privilege

To register his privilege, the seller must submit:

• Two registration forms signed and authenticated, issued by the National Center of the Trade Register;
• Two originals of sale deed;
• Registration fees.

A registration certificate is issued to the seller.

• Registration of a pledge of business asset or tools and equipment :

To register the pledge a pledge of business asset or tools and equipment, the creditor (pledgee) must submit:

• Two registration forms signed and authenticated, issued by the National Center of the Trade Register;
• Two originals of the pledge constituent deed of business asset or tools and equipment;
• Registration fees.

A registration certificate is issued to the pledger

The pledge must be registered within a period of 30 days from the date of the constituent deed of the mentioned pledge (Article- 153 of the commercial Code).

It is necessary to specify that in accordance with the Article 168 of the commercial Code: vehicles, ships and aircrafts are not submitted to the application of the mentioned pledge provisions.