Majority of pledge holders

Abstract

The article deals with the issue of the horizontal or vertical majority of pledge holders. The author analyses the important theoretical question whether the pledge can be classified as a right in rem or as a limited right in rem, the content of which is the right of the pledgee to appropriate the value of the pledged object in priority to other creditors in order to fulfil the secured obligation. Such questions as the movement of pledge ranks or transactions with pledge seniority are dealt with as well. The article also discusses various other problems associated with majority of pledge holders.