Collateral Security Agreement In Spanish

Yes, Spanish law provides for a specific security mechanism in relation to inventory, i.e. the non-proprietary inventory deposit (take sin desplazamiento de inventario). As noted in questions 3.2 and 3.3 above, this type of warranty must be certified notarized and the registration in the corresponding Chattel register must be refined. The notarized deed must contain a very complete description of the inventory of the pledge commitment in the register concerned, as well as the identification of the premises where this inventory will be located for the duration of the collateral. The declaration of bankruptcy triggers an automatic stay of one year (unless the debtor obtains authorization for a composition contract or files an application for liquidation sooner). This automatic stay applies to creditors backed by collateral on assets necessary to continue the ordinary price (with the exception of interest on securities subject to the special regime of financial guarantees or linked to guarantees outside Spain). In addition, claims secured by a pledge on future claims are considered „privileged“ in an insolvency proceeding, provided that the following conditions are met: (i) the security interest granted is documented by an authentic act (escritura péblica) when it comes to ordinary instructions; or (ii) that the interest of security is formalized by an act (p`liza notarial) and is recorded in the relevant chatl register in case of uns possessed collateral. As a general rule, the granting or granting of a guarantee by a foreign lender to a Spanish company would not create a taxable presence (i.e. a stable establishment) in Spain vis-à-vis a foreign lender. 7.5 Do restrictions apply to foreign lenders in the case (a) of legal action against a company in your jurisdiction or (b) of enforced execution in the event of a guarantee? Finally, the Civil Procedure Act provides that, for reasons of criminal procedure, the moratorium on execution may suspend the execution and enforcement of such agreements until the criminal court makes a final decision in the context of such a procedure.