Law No. 45-20 on Movable Collateral
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Law No. 45-20 on Movable Collateral (“Law 45-20”) was enacted on February 18, 2020 with the purpose of establishing a legal framework that encourages the use of movable collateral, especially as a tool for small and medium enterprises to access credit . Particularly, this new law establishes a publicity and electronic registration system and regime that ensures a faster and more efficient way of enforcement for the return of its capital.
Law No. 45-20 has the purpose of establishing the legal framework of the movable collateral regime, the Electronic System of Movable Collateral, their enforcement, as well as the unitary legal regime for the incorporation, effectiveness, publicity, registration, priority, execution and everything related to said security interests.
The Law 45-20 governs throughout the national territory and its application regulates access to credits and securities and financial instruments regulated in the Law on the Securities Market, provided that no special legislation or regulation is issued for such purposes. However, the movable collateral regime referred to in Law 45-20 will not be applicable to aircraft, ships or other assets that are subjec to mortgage under the law.
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