Honduras: Personal Guarantee Law
The new law will allow lenders to accept personal property as a guarantee for loans.
Monday, July 26, 2010
The head of the Honduran Association of Banking Institutions (AHIBA), María Lidia Solano, told Latribuna.hn that, "movable guarantees are an instrument that can be used to give small and medium sized producers access to credit".
The law passed by the Legislature allows companies to use their personal property as collateral to take out productive loans.
When there aren’t sufficient assets to use as collateral for bank financing, producers are registering their crops in the "Registro de Garantías Mobiliarias" (Movable Collateral Registry - RGM).
A law project will enable creditors to accept movables as collateral for loans.
The Chamber of Commerce is promoting an initiative that it hopes to present to the Assembly and have it approved before the end of the year.
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