The change provides clarity regarding the pledges over credit rights, restoring pledges as effective and efficient security interests.

The Spanish legislator has finally enacted the long-awaited reform to Article 90.1.6º of the Insolvency Law, as recommended and anticipated in our previous reviews to the recent Insolvency Law amendments (see Client Alert dated 18 March 2014 Material Reform of the Spanish Insolvency Law). The reform clarifies the controversy of the requirements for pledges of credit rights to benefit from a special privileged credit status in an insolvency scenario.