Commercial Transactions

Secured Transactions in Real Estate

A system that taps the asset value of personal property, thereby facilitating commercial lending. Under secured transaction regimes, debtors use their property as collateral to secure loans, thereby granting creditors a “security interest” in the property –that is, a right to seize and sell the property in case of default by the debtor.

Secured Transactions pertains to the laws, procedures, and institutions designed to facilitate commerce by promoting transparency, predictability, and simplicity in creating and enforcing security interests in assets. Secured transactions in MongoliaThe development of Secured Transaction Law pertaining to personal property allows individuals and companies who may not own real property, or who otherwise lack meaningful participants in their economies. A reliable system for allowing assets to be used as collateral is important for underpinning consumer credit and allowing individuals and companies to access business loans.

Effective support for Secured Transactions Laws begins with a clear and coherent legal framework. Legislation should:

• Clearly define security interests.
• Identify who has capacity to create them.
• Define (or exclude) particular types of transactions in which security interests can be created.
• Outline the procedures for creating and registering securities.
• Outline the consequences of registration and failure to register.
• Define the priority of secured and unsecured creditors.

Secured Transactions Law is a fundamental building block for transitioning to a market economy. It is important in both transitioning and post-industrial economies because it reduces the cost of lending by providing creditors with maximum information about a potential borrower’s financial position. The broad-based access to finance Secured Transactions Law creates allows entrepreneurs to finance productive investment in their enterprises, secure additional inventory, or even serve as start-up capital.

Spanish Translation of commercial transactions

This is the legal translation of English to Spanish in relation to commercial transactions and / or a definition of this topic: Acto de Comercio (in Spanish, without translation of the dictionary entry).

Worldwide Commercial Transactions