Secured Transactions Law for Costa Rica

A bill has been presented to the Legislature which will regulate the use of inventories, intangible assets and other movable assets as security for financing.

Friday, February 8, 2013

A statement from the MEIC reads:

San Jose, February 7, 2013. In order to increase access to credit, particularly for SMEs, the financial sector, the private sector and the Government, with the help of international consultants, over the last few months have been working on the basis for a proposed Law on Secured Transactions.

According to Boris Kozolchyk from the National Law Center for Inter-American Free Trade, creator of the InterAmerican Law on Secured Transactions (Model Law) of the Organization of American States (OAS), the project will permit the use of inventories, cash flows, contracts, intellectual property, trademarks, etc., as an alternative option to the traditional real estate mortgage collateral. It establishes a new legal framework in line with international best practices, which is safer, and easier enabling financial creditors to provide loans more quickly, but also with the necessary legal certainty, modifying the design of the operation of the Registry of Secured Transactions.

This initiative is part of the National Strategy for Regulatory Improvement and simplification of procedures and specifically as part of the efforts that are being made, accompanied by the International Finance Corporation (IFC) of the World Bank, to improve the Doing Business indicator for access to credit.

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More on this topic

El Salvador: Secured Transactions Act

September 2013

The Economic Committee in Congress has agreed to pass a law that will enable collateral such as merchandise or intangible assets such as patents to be used to obtain loans.

The law will facilitate the process for natural and legal persons to apply for loans using collateral such as their properties, tools, patents, trademarks and merchandise.

Financing for MSMEs in Costa Rica

July 2013

The Bank of Costa Rica and the Foreign Trade Promotion Office are to launch a credit program for exports.

"Funding is one of the main barriers to the development of the national export sector, preventing our companies from realising their true potential. This program will directly benefit over 2,000 exporting companies from all over the country," said Mario Rivera, general manager of the BCR.

Collateral Registration Already Operating in Honduras

January 2011

Since last Friday, the Secured Transactions Registry administered by the Chamber of Commerce of Tegucigalpa has become operational.

The Registry will accept machinery, crops, vehicles or any movable and immovable property as collateral for a loan or financing. adds, "The law which creates the Register aims to boost access to credit in the financial system by expanding to property, rights or shares which may be subject to warranty."

Ninety-One Secured Property Transactions in Guatemala

March 2009

In the 2 months that the Secured Transaction Registry has been operating, there have been 91 inscriptions for amounts of up to $20 million.

This registry allows companies to inscribe all types of assets and is seen by companes as a way to access more credit in the financial system.