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Abstract: Major commercial lenders in the United States and Canada look to the movables – inventory, accounts receivable, proceeds, intellectual property, and the myriad other forms of personal property extant to day – of their debtors to find the principal source of collateral for securing their extensions of credit. Mexico has not yet harmonized its law of secured transactions with that of the U.S. and Canada. Many U.S. and Canadian lenders might enter the Mexican credit market, but for the lack of a reliable legal regime with which to secure their loans. This paper discusses the Mexican law of secured transactions. Mexico remains tethered to a system of secured transactions dating back to Roman Law when real property was the major source of wealth and the virtually exclusive form of collateral for loans. The hallmarks of the Uniform Commercial Code’s Article 9 do not exist in the Mexican system. For specific items of collateral, specific methods of setting up perfected security interests do exist under Mexican law. Still, in attempting to secure any loan in Mexico, perfecting a priority in the specific collateral involved will likely be complex, quite formal, and time consuming. (from introduction, edited)
Keywords: secured transactions, Mexican law, commercial law
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