Movable hypothec with vs without dispossession
In Quebec, the Civil Code recognizes two movable hypothec regimes. Understanding the difference matters for diligence, litigation, and closings.
### Movable hypothec with dispossession (pledge) The creditor takes physical possession of the charged asset. Classic example: pledge of a bearer security, a valuable item, or inventory. The right is published on the RDPRM, but the security rests on actual possession. Form RH, roles Titulaire / Constituant.
### Movable hypothec without dispossession The debtor keeps use of the asset (typically equipment, receivables, bank accounts, inventory). The security is opposable to third parties only through RDPRM publication. This is the most common form in modern commercial financing. Also form RH, same roles.
### Why it matters in practice For a lender, the non-dispossession hypothec is more flexible — the debtor keeps operating — but riskier, because its validity depends entirely on publication. A poorly formed inscription or a vague asset description can be challenged in court.
### What Tablix does Both types are classified under form RH in the RDPRM. Tablix extracts them as-is; the full inscription text indicates "with" or "without" dispossession, and that precision is preserved in the table exported to Word or Excel.