In May 2023 the regulation of Law 9246, known as “Ley de Garantías mobiliarias”, was approved and published, allowing persons and legal entities to guarantee the payment of their obligations using movable assets which are non-registrable.
Movable collateral can be granted over any movable property if it has an economic value for the creditor and is not prohibited by law.
The law establishes in section four which objects are NOT subject to be movable collateral:
- Vehicles of all types that require circulation on public roads and registration in the Public Registry.
- Aircraft, aircraft engines, helicopters, railway equipment, space elements, and other categories of mobile equipment are regulated by international conventions and treaties duly ratified by Costa Rica.
- Intermediate securities or financial instruments regulated by the Securities Market Regulatory Law
The main objective of the movable guarantee is to increase and facilitate access to credit by medium, small, and micro-enterprises, and benefit creditors by allowing them to have the security that their obligations are being supported by the movable collateral.
Among the many advantages of movable collateral, it is worth mentioning:
- Incentive for financial inclusion.
- Increase access to financing.
- Facilitate the use of movable property as collateral.
- Democratizes credit.
- Strengthen PYMES.
Per section eleventh of “Ley de Garantías Mobiliarias”, the contract must be granted in writing and must contain:
- Clause for the constitution of movable collateral.
- The data and signatures that allow the identification of the parties.
- The maximum amount by the movable guarantee or the way to determine of the amount.
- Contractual address to attend to future judicial and extrajudicial notifications.
- The express mention that the assets described will serve as collateral for the guaranteed obligation.
- Description of the guaranteed obligations.
- Authorization by the debtor to the creditor to submit the initial registration form to the “Sistema de Garantías Mobiliarias del Registro Nacional” and other subsequent registration forms.
- Express mention of the consent to execute the guarantees in an extrajudicial venue, if agreed by the parties.
- The date and place of execution.
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