Amendment to the General Law of Titles and Credit Operations and the General Law of Organizations and Auxiliary Activities of Credit.
On March 26, 2024, a decree was published in the Official Gazette of the Federation amending various provisions of the General Law of Titles and Credit Operations and the General Law of Organizations and Auxiliary Activities of Credit. This implements the use of new technologies in the issuance of credit titles, modernizing the legal framework to adapt it to the current needs of commercial practices.
The main changes resulting from the reform include the following:
Credit titles are the necessary documents to exercise the literal right recorded in them, regardless of whether they are issued in written or electronic formats (promissory notes, checks, participation certificates, among others).
Credit titles may be issued in electronic, optical, or any other technology, endorsed, guaranteed, and transmitted through an information system that will be used to generate, transmit, receive, deliver, or otherwise process data messages. The legal effects, validity, or enforceability of the rights recorded in these titles will not be denied simply because they are contained in a data message.
The holder of a title has the obligation to exhibit it to exercise the right recorded in it, which in the case of credit titles issued in electronic, optical, or any other technology, the holder will exhibit such title through the information system.
Regarding the deposit certificate, which is a credit title that certifies the ownership of goods or merchandise deposited in a General Deposit Warehouse, these can only be issued in electronic, optical, or any other technology through the cryptographic systems of deposit certificates determined by the issuing General Deposit Warehouses themselves, therefore, deposit certificates can no longer be issued in physical formats.
The pledge bond, which was the document that accredited the constitution of a pledge credit on the goods or merchandise indicated in the corresponding deposit certificate, is also eliminated. Therefore, in case of constituting a pledge credit on the deposited goods, the data related to the granted credit must be incorporated into the certificate.
This reform came into effect the day after its publication in the Official Gazette of the Federation. The Federal Executive and the National Banking and Securities Commission have a period of 180 working days from the entry into force of this Decree to adjust the regulations, or any other normative provision that requires updating, in accordance with the content of this Decree.
For their part, the general deposit warehouses must adjust their operations for the issuance of electronic deposit certificates, no later than 18 months after the effective date of the reform. Until the aforementioned period is met, they may continue issuing the deposit certificate documented in physical media, to ensure the continuity of the service. The deposit certificates and pledge bonds issued before the entry into force of this Decree will remain valid until their cancellation.
AS ALWAYS, WE REMAIN AT YOUR DISPOSAL TO DISCUSS ANY MATTER RELATED TO THIS INFORMATION.
