Colombia’s New Law on Security Interest over Movable Assets Comes Into Effect
28 April 2014
Mayer Brown Legal Update
On February 21, 2014, a new law on security interests over movable assets (Law 1676 of 2013, "Law 1676") came into effect in Colombia. The purpose of Law 1676 is to increase access to the financial products of medium and small-sized companies. Among the most significant changes in the new law are: (i) an expansion of the types of assets that may be subject to a security interest; (ii) the creation of a new centralized system where filing and searches of security interests may be conducted; (iii) new methods to enforce security interests against third parties; and (iv) new methods to enforce security interests against debtors/guarantors.