January 15 2010
The Movable Assets Registry, which will begin operations in August 2010, will facilitate the granting of loans to small and medium-sized companies. Many such companies do not own real estate and their owners are reluctant to use their personal property as security. However, certain institutions, such as financial leasing companies, wish to offer loans in the small business market.
The creation of the registry will make it easier to offer such loans because a security interest created in personal property can be recorded in the registry. It thus provides a reliable legal basis for confirming the existence of the security and its priority with respect to the security of other creditors, as well as a way of giving public notice of the creation of the security.
The personal property that can be used as collateral includes cars, machinery, equipment, electrical devices or other forms of property as allowed by law. The loan thus secured may be used to purchase assets and can be repaid in instalments.
For further information on this topic please contact Miguel Angel Peralta or Jose Ignacio Diaque at Basham Ringe y Correa SC by telephone (+52 55 5261 0474), fax (+52 55 5261 0557) or email (firstname.lastname@example.org or email@example.com).
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Miguel Angel Peralta
Jose Ignacio Diaque