Are there any recent or pending developments in the legal or business environment that affect asset-based lending?
During the last years, there have been a number of important amendments to financial laws in Mexico, which have significantly improved the legal framework for lending: On April 24, 2003 amendments to seven laws improved the execution procedures related to the trust, the security trust, the non-possessory pledge, and several credit transactions including commercial and mortgage loans and also provided that trusts and non-possessory pledges no longer had to be non-recourse devices (e.g., the holder or the beneficiary of the non-possessory pledge or trust, as applicable, is no longer required to waive any deficiency that exists after enforcing the trust or non-possessory pledge). The reform also includes new provisions regarding financial leasing, factoring and pledge on securities. This reform was aimed at promoting bank lending by reducing transaction costs and improving the current judicial procedures and recognizes that non-judicial execution procedures for security trust and non-poss
