Friday 17 September 2021

New Law Allows Use of Intangibles As Collateral

Paying the bills


Today’s Vehicle Restriction September 17: Plates ending in “9 & 0” CANNOT circulate

QCOSTARICA - For today, Friday, September 17, vehicles with...

Italy to bring in vaccine passes for entire workforce

ROME — Italy is to require the country's entire...

Number of minors victims of the pandemic in Costa Rica reaches 19

QCOSTARICA - A baby of one month and 20...

CCSS activates ‘vacunatón’ against covid-19

QCOSTARICA - Starting this Friday, and for 10 days,...

MOPT eliminates driver re-education for points accumulated in license for violating vehicle restriction

QCOSTARICA - Drivers who were sanctioned for violating the...

Costa Rica celebrated its 200th!

QCOSTARICA  - The 200 years of the Independence of...
Paying the bills


inventory credit
Intangibles such as crops can be used to obtain loans starting May 20.

QCOSTARICA – On May 20, the Secured Transactions Act  (Ley de Garantías Mobiliarias – N.° 9.246) goes into effect, which allows individuals and companies to use intangible property as collateral of loans.

The new law allows assets such as accounts receivables, personal property (except vehicles), crops, commercial patents, consumable goods, inventories and intellectual property, among others, to be recorded electronically in the National Registry (Registro Nacional).

- Advertisement -

Danilo Montero, executive director of the Costa Rican Association of Development Organizations (Asociación Costarricense para Organizaciones de Desarrollo  -Acorde), acknowledged that the law will be very useful particularly for small businesses and microenterprises (micro empresas in Spanish) and farmers counting on inventory credit, to obtain business loans.
Montero explained that with the ability to record, electronically, a lien against such property opens doors to new financing opportunities.

However, lenders are not being so quick to adopt the measure.

Gerardo Corrales, general manager of BAC San José, told La Nacion that his bank will wait for the regulations to know the details before lending on this type of asset.

Typically, lenders in Costa Rica make loans on tangible property such as real property (land, buildings, and fixtures) and personal property (ships, automobiles, tools, etc.).

Financial experts warn of the “collateral lending trap”, when the primary basis for loan approval is the value of collateral instead of the capacity of the enterprise to generate profit.

In Commonwealth legal systems, intangible property is traditionally divided in pure intangibles (such as debts, intellectual property rights and goodwill) and documentary intangibles, which obtain their character through the medium of a document (such as a bill of lading, promissory note or bill of exchange).

- Advertisement -

The recent rise of electronic documents has blurred the distinction between pure intangibles and documentary intangibles.

Source:; Wikipedia; Registro Nacional

- Advertisement -
Paying the bills
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Legislator proposes the creation of an updated registry of pedophiles

QCOSTARICA - With the intention of protecting minors, a bill proposed...

Canada donates 319,000 vaccines to Costa Rica

QCOSTARICA - The Government of Canada confirmed the donation of 319,000...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.