A Central American mortgage law which was approved in Guatemala
and rejected a few days later in the Costa Rican Congress, could
lead to a more sophisticated banking system, according to a lawyer
familiar with the legislation.
The law, which came into force in Guatemala on 15 October but is
still awaiting approval in other Central American countries, will
allow people to take out a mortgage using as a guarantee property
that is located in a different Central American country.
"As a direct result [of the law], we will see how the
banking industry will evolve in its size, as more, and larger
transactions, will take place." says Central Law
Honduras' Jesús Humberto Medina-Alva. "Furthermore,
the financial market's evolution will provide grounds for more
sophisticated transactions, increasing the need for additional
legal work from law firms, for both the banks and the
Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama
and Dominican Republic have all signed the regional mortgage treaty
but Medina-Alva believes that countries such as Panama which
already have more sophisticated banking structures will benefit
more from the law.
In the case of Costa Rica, the legislature rejected the law as
it didn't see how it would benefit the country.
'The Costa Rican Congress decided to reject the treaty
arguing that there is no certainty about the real benefits and
advantages that Costa Rica could obtain through the implementation
of the treaty,' says a Costa Rican lawyer. 'Furthermore,
there are at least six additional provisions to be included in the
treaty for clarity, interpretation and to avoid potential
The legislation will also lead to an increase in legal work,
explains Medina-Alva, because as the market grows there will an
increase in arbitration and litigation. It will also push lawyers
in each country to learn more about their neighbour's legal
framework, he says.
"The increasingly dynamic market, facilitated by the law,
will compel business, corporate, banking and transactional lawyers
in the region to acquire additional academic and practical
knowledge from each of the jurisdictions covered by the law, in
order to respond to their clients' growing needs," he
says. "With the 'Central Americanisation' of the
banking industry, both banks and companies will place a premium on
the cross border capacities of their attorneys, prompting firms to
adopt new technologies and modernise their legal practices'
culture, in procurement of cross border and multi-jurisdictional
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) decided to amend and add provisions to CVM Instruction No. 400, of December 29, 2003 (CVM Instr. 400/2003), that regulates public offers for the distribution of securities in the primary and secondary markets in Brazil, by means of CVM Instruction No. 533, of April 24, 2013 (CVM Inst. 533/2013).
In this article we shall attempt to outline the definition of interest, so called( Riba) under the Sharia or Islamic law , followed by a short survey of the laws of some Arab countries which have prohibited or permitted charging interest.
The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) found a way to facilitate fund raising for Brazilian small and medium-size companies with the issuance of shares, without changing the applicable law or regulations.
On April 25, 2012, the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) issued CVM Instruction No. 521 (CVM Instr. 521/2012), regulating the activity of credit risk rating (classificação de risco de crédito) in the Brazilian securities market, with emphasis on registration and recognition requirements, information disclosure, and rules of conduct and internal controls of the credit rating agencies (CRAs).
On March 29, 2012, the Brazilian Monetary Council (Conselho Monetário Nacional – CMN) decided to amend the provisions of CMN Resolution No. 2723, of May 31, 2000 (CMN Res. 2723/2000), which sets forth detailed rules, conditions and procedures for installing dependencies abroad and for the direct or indirect equity interest in Brazil or abroad by financial institutions and other entities authorized to operate by the Central Bank of Brazil (Banco Central do Brasil – Bacen).
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”