Inventory financing and the 'bono de prenda'
- Local and multilateral financing
- Where the credit comes from
- Audited
Decree 1746, the General Deposit Warehouses Act, governs warehousing companies as auxiliary credit institutions. They issue two instruments: the deposit certificate, which represents ownership of the goods, and the bono de prenda, or pledge bond, which documents a secured loan over them. This is the classic mechanism for financing imported inventory or stored harvests, including goods held under customs bond; its basis is article 717 of the Commercial Code.
The research is written in English; quoted figures, source names and the titles of legal instruments stay in the language their source published them in.
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