Main Points of Difference First: Abolition of Possession Requirement Traditionally, a pledge over a movable property, being classified as a possessory pledge, required actual delivery of possession. For example, if a debtor sought to pledge a car as a security against a debt and the creditor accepted it, the pledge would only be perfected upon full transfer of possession to the creditor (commonly referred to as “delivery,” “possession,” or “retention”). This requirement gave rise to numerous practical complications, including questions regarding liability for accidents, maintenance obligations, entitlement to benefits or proceeds generated by the asset while it remains out of the debtor’s possession, and the consequences of destruction or loss. These complexities rendered the pledging of movable property, such as