The traditional forms of security are the fiduciary guarantee (co-debtors), the pledge and the mortgage, under the Commercial Code and the Civil Code; a mortgage over real property recorded at the General Property Registry remains corporate banking's preferred collateral. The Movable Guarantees Act (Decree 51-2007, amended by Decree 4-2018) allows inventory, receivables, machinery, future harvests and movable property in general to be pledged, with priority set by order of filing at the Movable Guarantees Registry (RGM), a public registry attached to the Ministry of the Economy (MINECO) that accepts standard forms on paper or electronically. Loan-to-value practice by bank is not published.
What can I pledge as collateral for a loan in Guatemala? Can inventory, machinery or receivables be used?
Sources
Decreto 51-2007 Ley de Garantías Mobiliarias
Organismo Judicial Decreto 4-2018
CanCham La garantía mobiliaria en Guatemala
