REAL AND PERSONAL SECURITY required that the debtor be entitled to pay and to enforce payment from the counter-party. It suffices that both cla ims have arisen before insolvency or that they arise from a legal relationship with the creditor which predates the creditors insolvency(art. 53 Fw) However, a current account relationship between a bank and his client does not always suffice. #,The bank will no longer be able to set-off incom ing payments on the current account aga inst his counter-clam aga inst the client in the period in which the client's insolvency can be foreseen or in the period after the declaration of insolvency. Despite these strict rules set-off in this forbidden period is possible if the incom ing money is a payment of a client's claim which was pledged to the bank 5,NJ1996/471) The lenientart 53 Fw on set-off in insolvency is restricted also by art. 54 Fw. In sub I it provides that someone who before the declaration of insolvency took over from a third party a debt due to or a chim aga inst the insolvent party is not entitled to set-off if at the moment of taking over he was not in good faith. Sub 2 adds that debts or cla ims taken over after the declaration of insolvency cannot be set off. Suretyship(,)43 Suretyship under dutch law is seen as a special contract, creating a specific type of passive solidary obligation: the surety has to perfom an obligation to which a third person, the principal obligor, is or will be bound to the obligee, The provisions regarding solidary obligations apply, 4 unless otherwise provided in the Title on suretyship. 45 Suretyship has a subsidiary nature: the surety is not obliged to perform until such time as the principal obligor has failed in the performance of his obligation (art7:855(1) As to suretyship, again, the Civil Code adheres to its general approach that provisions common to certain legal relationships precede more specific rules. This means that, as already mentioned, the prov isions on solidary obligationsalso apply to suretyship and that, as suretyship is a contract, the rules in Book 3 on legalactsapply as well as the rules in Book 6 on obligations in generaland on contracts. The specific les on suretyship are laid down in Title 14 of Book 7. First general en,followed by special (mandatory) provisions in case the surety is a 42 HR IO January 1975, NJ1976/249 43. For a brief introduction see B. Wessels, Borgtocht in C. van Zeben(et al. ), Bijzondere overeenkomsten, Kluwer, Deventer 1998, pp 467 ff. for further references seep. 468. See also AG Castermans, commentary on artt. 7: 850 ff, in: IH Nieuwenhuis(et al, eds. h Burgerlgk Wetboek Tekst Commentaar, Kluwer, Deventer 1998. More detailed: A L. Coes et al., Bijzondere overeenkomsten, 9th ed, Gouda Qunt Amhem 1995; H.J. Pabbruwe, Bankgaranti, 4th ed Kluwer, Deventer 2000; J. W.H. Blomkwst Borgtocht, 2nd ed, Kluwer, Deventer 1998 44. See artt. 6: 6 ff, conceming plurality of debtors and so hidary obligations. Art 7: 850(1)and ( ) See artt 7: 865 ff. regarding the consequences ofsuretyship as between the pr nepal obligor and the surety, and as between sureties and non obligors liable for obligations among themselves.REAL AND PERSONAL SECURITY 11 required that the debtor be entitled to pay and to enforce payment from the counter-party. It suffices that both claims have arisen before insolvency or that they arise from a legal relationship with the creditor which predates the creditor's insolvency (art. 53 Fw). However, a current account relationship between a bank and his client does not always suffice.42 The bank will no longer be able to set-off incoming payments on the current account against his counter-claim against the client in the period in which the client's insolvency can be foreseen or in the period after the declaration of insolvency. Despite these strict rules set-off in this ‘forbidden’ period is possible if the incoming money is a payment of a client's claim which was pledged to the bank (HR 17 February 1995, NJ 1996/471). The lenient art. 53 Fw on set-off in insolvency is restricted also by art. 54 Fw. In sub 1 it provides that someone who before the declaration of insolvency took over from a third party a debt due to or a claim against the insolvent party is not entitled to set-off if at the moment of taking over he was not in good faith. Sub 2 adds that debts or claims taken over after the declaration of insolvency cannot be set off. 7 Suretyship (‘Borgtocht’)43 Suretyship under Dutch law is seen as a special contract, creating a specific type of passive solidary obligation: the surety has to perform an obligation to which a third person, the principal obligor, is or will be bound to the obligee. The provisions regarding solidary obligations apply,44 unless otherwise provided in the Title on suretyship.45 Suretyship has a subsidiary nature: the surety is not obliged to perform until such time as the principal obligor has failed in the performance of his obligation (art. 7:855(1)). As to suretyship, again, the Civil Code adheres to its general approach that provisions common to certain legal relationships precede more specific rules. This means that, as already mentioned, the provisions on solidary obligations also apply to suretyship and that, as suretyship is a contract, the rules in Book 3 on legal acts apply, as well as the rules in Book 6 on obligations in general and on contracts. The specific rules on suretyship are laid down in Title 14 of Book 7. First general provisions are given, followed by special (mandatory) provisions in case the surety is a 42. HR 10 January 1975, NJ 1976/249. 43. For a brief introduction see B. Wessels, Borgtocht in: C.J. van Zeben (et al.), Bijzondere overeenkomsten, Kluwer, Deventer 1998, pp. 467 ff.; for further references see p. 468. See also A.G. Castermans, commentary on artt. 7:850 ff., in: J.H. Nieuwenhuis (et al., eds.), Burgerlijk Wetboek Tekst & Commentaar, Kluwer, Deventer 1998. More detailed: A.L. Croes et al., Bijzondere overeenkomsten, 9th ed., Gouda Quint, Arnhem 1995; H.J. Pabbruwe, Bankgarantie, 4th ed., Kluwer, Deventer 2000; J.W.H. Blomkwist, Borgtocht, 2nd ed., Kluwer, Deventer 1998. 44. See artt. 6:6 ff., concerning plurality of debtors and solidary obligations. 45. Art. 7:850(1) and (3). See artt. 7:865 ff. regarding the consequences of suretyship as between the principal obligor and the surety, and as between sureties and non-obligors liable for obligations among themselves