Agreement between ABI and Confindustria on the valorisation of new collateral instruments

On 12 February 2018, an agreement for credit and development of new collateral instruments (“Accordo per il credito e la valorizzazione delle nuove figure di garanzia”) was executed between the Italian banking confederation (Associazione Bancaria Italiana, “ABI”) and the Italian entrepreneurs association (“Confindustria”). The agreement concerns certain proposed contractual mechanisms aimed at promoting the efficient use of the so-called “patto marciano” and the “pegno mobiliare non possessorio”, recently regulated by Law Decree No. 59/2016 as collateral for facilities granted or to be granted to companies. With specific reference to the patto marciano, the agreement allows the parties to include certain contractual clauses in the facility agreement, such as those providing for the possibility to (a) unilaterally suspend the execution of the patto marciano clause in the event of a significant deviation in the value of the collateral with respect to its original estimated value (it being understood that all the other provisions of the agreement remain valid and effective) (b) sell the collateral – pursuant to the procedures therein defined – in order to repay the facility if the value of the collateral exceeds the amount of the outstanding facility, and (c) transfer the collateral to the bank as reimbursement of the loan. The agreement also confirms the possibility to combine such collateral with a mortgage.