FIDUCIARY TRANSFER OF TITLE UNDER THE LAWS OF THE NETHERLANDS ANTILLES
A concept similar to a right of pledge
In the Netherlands Antilles collateral transfer (‘fiduciaire overdracht’) is a common security interest. It is construed as the full transfer of a proprietary right by the debtor to the creditor, under the condition subsequent of satisfaction of the obligation the collateral is to secure.
Once said condition is fulfilled, the ownership of the proprietary right reverts back to the debtor, unless the debtor and the creditor have explicitly agreed that a separate retransfer is required. In that case, there is no automatic effect, but merely a contractual duty to retransfer.
This security interest has developed in practice and is not subject to any specific statutory provisions. The courts, however, have consistently applied a number of statutory provisions in respect of pledge to collateral assignments.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
