Securing the provider's receivable is a tool by which the provider ensures that, in the event of a breach of contract, it recovers the funds it provided. The instruments mainly used are a pledge over assets acquired from the project or over other real estate, a blank promissory note signed by the statutory representative, a bank guarantee, or a third-party guarantee. The specific instrument and its scope are determined by the call and the contract, generally according to the size of the contribution and the beneficiary's risk profile. For a company this is not a formality: a pledge restricts the disposal of assets and can complicate a loan or a sale, while a promissory note allows for rapid enforcement without a lengthy dispute. Before signing, go through the scope of the security and the conditions for its release after the end of the sustainability period with a lawyer, and also inform your bank about them.
See also: Agreement on the provision of a non-repayable financial contribution (NFP), Return of funds.
