Non-Possessory Pledge Mexico (Prenda sin Desplazamiento)

A Non-Possessory Pledge Mexico (Prenda sin Desplazamiento de Posesión) is a movable property security interest governed by Articles 346 through 380 of the Ley General de Títulos y Operaciones de Crédito (LGTOC) — as amended most recently by the Decreto published in the Diario Oficial de la Federación on 27 August 2018 implementing Mexico's reformed secured transactions framework — that allows a debtor (pignorante or deudor prendario) to grant a security interest over movable assets (bienes muebles) to secure a credit obligation while retaining possession and use of those assets in their business operations.

The prenda sin desplazamiento was introduced into Mexican law as part of the 2009 and 2018 secured transactions reforms inspired by UNCITRAL's Model Law on Secured Transactions, transforming Mexico's movable property security regime from a possession-based system into a modern registration-based system. Before the reform, Mexican pledge law required the pledgor to physically deliver the pledged asset to the creditor (prenda con desplazamiento under the Código Civil Federal), making it impractical to pledge operating machinery, inventory, or other assets essential to the debtor's business. The prenda sin desplazamiento eliminates this requirement by substituting registration with the Registro Único de Garantías Mobiliarias (RUG) — administered by the Secretaría de Economía — for physical possession.

The Registro Único de Garantías Mobiliarias (RUG) is Mexico's electronic public registry of movable property security interests, established under the 2009 reforms and expanded under the 2018 amendments. Registration with the RUG provides public notice (publicidad registral) of the security interest and establishes priority (preferencia) against subsequent creditors, buyers without actual knowledge of the pledge, and trustee in bankruptcy (síndico) in the debtor's insolvency proceedings under the Ley de Concursos Mercantiles (LCM). An unregistered prenda sin desplazamiento is valid between the parties but has no priority against third parties.

Article 346 LGTOC defines the prenda sin desplazamiento as a guarantee (garantía) on movable property (bienes muebles), receivables (derechos de crédito), or future assets (bienes futuros) that does not require delivery of possession to the creditor. Article 353 LGTOC provides that the prenda sin desplazamiento can cover present or future assets, specific identified assets (bienes específicos), or a floating charge over categories of assets (bienes genéricos) — such as all inventory (inventario), all machinery and equipment (maquinaria y equipo), or all accounts receivable (cuentas por cobrar) — making it a flexible tool for commercial financing.

The Secretaría de Hacienda y Crédito Público (SHCP) and the CNBV have incorporated the prenda sin desplazamiento into the regulatory framework for SOFOM (Sociedad Financiera de Objeto Múltiple) and bank lending — regulated financial institutions are required to register all movable property security interests with the RUG and to follow specific valuation and insurance requirements for pledged assets. The Banco de México's credit risk regulations (Disposiciones de Carácter General) recognise RUG-registered prenda sin desplazamiento as eligible collateral for capital adequacy calculations under the Basilea III framework adopted in Mexico.

A Non-Possessory Pledge Agreement Mexico is required whenever a Mexican creditor — whether a bank, SOFOM, commercial supplier, or private lender — wishes to obtain a security interest over a debtor's movable assets without requiring physical delivery of those assets, allowing the debtor to continue using the pledged property in their business operations.

The prenda sin desplazamiento is the standard security instrument for equipment financing (financiamiento de activos fijos) in Mexico — when a manufacturing company (empresa manufacturera) borrows to purchase new machinery, the lender takes a prenda sin desplazamiento over the purchased machinery, registered with the RUG, while the company retains possession and uses the machinery to generate the revenue that services the loan. This structure is far more practical than a traditional pledge (prenda con desplazamiento) that would require delivering the machine to the creditor.

The agreement is essential for inventory financing (financiamiento de inventario) where a distributor or retailer pledges its current and future inventory as security for a revolving credit line. A floating charge over all present and after-acquired inventory (prenda sobre inventario presente y futuro) allows the credit line to be secured dynamically as inventory turns over — the security interest automatically attaches to new inventory as it is acquired, without need for new registration for each batch of goods.

A prenda sin desplazamiento is needed for accounts receivable financing — when a company pledges its trade receivables (cuentas por cobrar) as security rather than assigning them outright (cesión de crédito). The pledge structure allows the company to continue collecting its receivables while granting the lender a priority claim over the receivable proceeds in case of default.

The agreement is required for agricultural financing (financiamiento agropecuario) where a farmer or agro-industrial company pledges crops (cosechas), livestock (ganado), or agricultural equipment to FIRA (Fideicomisos Instituidos en Relación con la Agricultura) or Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero (FND) for production loans. Registration with the RUG provides the government development bank with priority over other creditors in case of default.

Under the Ley de Concursos Mercantiles (LCM), a creditor with a RUG-registered prenda sin desplazamiento qualifies as a secured creditor (acreedor con garantía real) with priority over unsecured creditors (acreedores quirografarios) in the debtor's bankruptcy or restructuring proceedings — making RUG registration critical for commercial lenders seeking meaningful collateral protection.

A valid Non-Possessory Pledge Agreement Mexico under LGTOC Articles 346 through 380 must contain the following essential elements to create an enforceable, perfected security interest with priority against third parties:

Identification of Parties: Full legal names, RFC numbers, and domiciles of the deudor prendario (pledgor/debtor) and acreedor prendario (pledgee/creditor). For personas morales, include corporate name, RFC, domicilio fiscal, and the authority of the signing representative under a poder notarial. The debtor must be the owner (propietario) of the pledged assets or have the right to pledge them.

Description of the Secured Obligation: Precise identification of the credit obligation secured by the pledge — including the underlying credit agreement (contrato de crédito), principal amount in MXN, interest rate, payment schedule, and any other monetary obligations (costs, penalties) covered by the security interest. The prenda sin desplazamiento secures the full obligation including accessories unless limited by agreement.

Description of the Pledged Assets: Detailed identification of the movable property pledged — for specific assets (bienes específicos), include make, model, serial number, and other identifying information; for generic categories (bienes genéricos), describe the category (e.g., all inventory at the debtor's premises at [address], all accounts receivable due within 180 days, all machinery and equipment). Future assets and after-acquired property (bienes futuros y de adquisición posterior) can be included under Article 353 LGTOC for revolving or open-ended facilities.

Debtor's Right to Retain Possession and Use: Express statement confirming the debtor retains physical possession (posesión material) and the right to use (derecho de uso) the pledged assets in the ordinary course of business, subject to obligations to maintain the assets in good condition, maintain required insurance coverage, and not transfer or encumber the assets without the creditor's written consent.

Insurance Requirements: The pledgor must maintain adequate property insurance (seguro de daños) on the pledged assets — naming the pledgee as loss payee (beneficiario preferente) — for the full replacement value (valor de reposición) of the pledged property throughout the term of the pledge. Common insurers for commercial assets in Mexico include GNP Seguros, AXA Seguros, and Mapfre México. Failure to maintain insurance constitutes a default event.

Registration with the Registro Único de Garantías Mobiliarias (RUG): The agreement must identify the obligation of the creditor (or debtor, as agreed) to register the prenda sin desplazamiento with the RUG administered by the Secretaría de Economía. Registration is what perfects the security interest against third parties — an unregistered pledge has no priority. The RUG registration fee (arancel) must be paid and the registration folio (folio electrónico) number noted in the pledge documentation.

Enforcement Rights (Derechos de Ejecución): The agreement must specify the creditor's enforcement rights upon default (incumplimiento) — including the right to take possession of the pledged assets (desposesión), sell them through the procedure established under Article 368 LGTOC (extrajudicial sale or judicial auction), and apply the proceeds to the secured debt. Mexican law permits extrajudicial enforcement of prenda sin desplazamiento when the parties have agreed to this procedure in writing.

Default Events (Eventos de Incumplimiento): Express enumeration of default events triggering enforcement — including non-payment, breach of insurance obligations, unauthorized disposal of pledged assets, insolvency filing under the Ley de Concursos Mercantiles, material deterioration of pledged asset value, and cross-default provisions.

Forms-legal.com provides this Non-Possessory Pledge Mexico template as a reference document. Security agreements over significant business assets — particularly floating charges over inventory, receivables, or equipment portfolios — should be prepared by a Licenciado en Derecho specialised in garantías mobiliarias and registered with the RUG by a legal professional with RUG filing experience. Errors in asset description or RUG registration can render the priority claim ineffective against competing creditors or the concurso mercantil trustee.