Security interests in Argentina may be structured through different agreements according to the nature of the assets included as collaterals.
The Civil and Commercial Code of the Nation (Código Civil y Comercial de la Nación or CCCN) makes a distinction between personal or movable property and real property or real estate (Articles Number 225 and following).
Real property1 includes the real estate by its nature (the soil itself, its organically embedded things and those located without human intervention. CCCN, Article Number 225) and the real estate by accession (personal property immobilized by being physically attached to the soil with a lasting nature, with the exception of things inherent to the real estate's operation or to the owner's activity. CCCN, Article 226). Movable property includes those things that may move by themselves or by an external force (CCCN, Article Number 227).
Security interests grant the secured creditor a privilege or priority interest to collect the debt over the proceeds of the collateral above the claims of other creditors.
Security interests in real estate
Mortgages and antichresis may be used to create a security interest in real estate.
Mortgages may be created over a specific real estate, ship or aircraft. Mortgages over real estate are governed by Articles Number 2,205 through 2,211 of the CCCN. Mortgages over ships and aircraft are regulated by special legislation (the Shipping Law Number 20,094, Article Number 499 and followings, and the Aeronautical Code, Article Number 52 and followings).
Antichresis lies on real estate and registered personal property, whose possession is delivered to the creditor or an appointed third party, and allows the collection of the proceeds to pay out a debt (CCCN, article 2,212).
Security interests over movable property
Secured credits over movable property may be created through pledges or chattel mortgages.
Pledges involve the delivery of a certain debtor's asset to the creditor or a designated third party (CCCN, Article Number 2,219). Movable property, credits (CCCN, Articles 2,232 through 2,237), cash, and shares (General Companies Law Number 19,550, as amended, Article Number 219) may be pledged.
Chattel mortgages allow the debtor to keep possession over the movable property and may be created by an Agrarian pledge or a registered pledge. Agrarian pledges are regulated by Law Number 9,644 and may be created on agricultural machinery...
Security Interests In Argentina And Other Legal Tools To Enforce Collection Of Debts. A Brief For Foreign Lenders
|Author:||Mr Mario Eduardo Castro Sammartino|
|Profession:||Castro Sammartino & Pierini|
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