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".

In order to use personal property as a guarantee for a loan it must be registered with the Chamber of Commerce, which will provide a certificate.

More on this topic

Nicaragua Approves Secured Transactions Law

October 2016

The law passed by the Legislature allows companies to use their personal property as collateral to take out productive loans.

From a statement issued by the National Assembly of Nicaragua:

During the plenary session on October 5, the National Assembly approved in general the Secured Transactions Law, a legal instrument to promote access to credit for micro, small and medium enterprises by putting up any movable goods used in their daily work as collateral.

Increased Use of Crops as Collateral

November 2012

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).

Prensalibre.com reports that "Of the 400 entries of movable items from January to November in the RGM, at the Ministry of Economy (Mineco), more than 150 correspond to crops of gold and pergamine coffee.”'

Honduras: Movables Guarantees Law

September 2009

A law project will enable creditors to accept movables as collateral for loans.

Juan José Lagos, micro-credit expert, explained that machinery, work accessories, accounts receivable and intellectual property could be used as collateral when soliciting credit.

Lagos also said: "The law will ease the guarantee problem for people, as currently creditors only accept real estate, like houses and lots, as collateral".

Promotion for Collateral Property Act

April 2009

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.

The law would provide access to financing by offering property and rights as payment guarantees.

Elnuevodiario.com.ni published: "The bill also seeks to strengthen trade links between SMEs and the business and micro finance sector."

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