Extinction of Retention Right Upon Provision of Bank Guarantee Security

Art. 895 ZGB, Art. 898 ZGB, Art. 372 OR, Art. 895 Abs. 1 ZGB, Art. 898 Abs. 1 ZGB; Extinction of Retention Right Upon Provision of Bank Guarantee Security: The retention right, which allows a creditor to withhold movable property until satisfaction of a claim and permits its realization if the claim is not adequately secured, ceases upon the provision of sufficient security. The court found that a bank guarantee, even one conditioned on the presentation of a final judgment or settlement to secure the claim, constituted sufficient security, reasoning that the creditor would need a judgment to enforce even an undisputed claim, and thus the security was not inadequate because it required such proof. Since the debtor provided a new, unlimited bank guarantee, the retention right of the creditor had already lapsed upon the filing of the security application.