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Security Interests in Peru: An Overview
It seems like you’re looking for a clear understanding of the legal framework regarding security interests in Peru. Below, we’ll break down the key points to help answer your questions.
Creation of Security
To create a security interest in Peru, it’s essential to understand the registration process and requirements.
Registration Requirements
- Mortgages: Registration is necessary for mortgages in the Peruvian Public Registry.
- Pledges: While not mandatory, registration is advisable for pledges to obtain publicity and enforceability.
Regulatory Consents
When creating a security interest, it’s crucial to be aware of any regulatory consents required beyond registration.
Required Consents
- No regulatory consents are required for the creation of security interests.
- However, specific consents may be needed when dealing with certain types of counterparties (e.g., banks, insurance companies).
Priority Concerns
Understanding priority rights is essential in Peru’s insolvency regime.
Revolving Credit Facilities
- No special priority concerns exist for revolving credit facilities.
- Priority rights of secured creditors will fall into third place after insolvent company’s workers and social security contributions.
Financial Assistance
To ensure compliance with financial assistance restrictions, it’s essential to understand the prohibitions and exceptions in Peru.
Prohibited or Restricted Transactions
- Shares of the Company: Guaranteeing or giving security to support borrowings incurred to finance or refinance acquisitions of shares in the company is prohibited.
- Upstream and Cross-Stream Acquisitions: However, guaranteeing or giving security to support borrowings incurred to finance or refinance upstream and cross-stream acquisitions (i.e., acquiring shares in a company that directly or indirectly owns shares in the company) may be allowed.
Feel free to ask if you have specific follow-up questions or need further clarification on any of these points!