Meaning
The primary federal statute in Mexico governs commercial transactions, mercantile contracts, and the enforcement of creditor rights over moveable industrial assets. Operating under the Mexican Commercial Code allows a plastics manufacturer or brand owner to legally secure and repossess injection moulds and auxiliary equipment located at a Mexican custom moulding facility. This law provides the legal framework for registering security interests and resolving mercantile disputes.
Security Interest
Mexican commercial provisions allow the creation of a non-possessory pledge, which enables a brand owner to maintain legal title to their injection moulds while allowing the Mexican moulder to use them for production. To be enforceable against third parties, this pledge must be registered in the Sole Registry of Moveable Guarantees. If the moulder enters bankruptcy or defaults on their agreement, this registered pledge gives the brand owner the priority right to recover the moulds ahead of unsecured local creditors and tax authorities.
This registry reduces the risk of long court battles over ownership.
Asset Recovery
In the event of a contractual breach, the code provides for specialized commercial litigation that is faster than ordinary civil proceedings. Creditors can seek provisional remedies, including the attachment of assets, to prevent the moulder from hiding or disposing of the tooling. This speed is critical to preventing long-term supply chain disruptions for the brand owner.
Contract Clause
Contracts governed by this code must contain precise descriptions of the secured equipment, including serial numbers, weight, and mold dimensions. These details ensure that the recovery order can be executed without delay by local courts. This specificity protects the brand owner’s investment.
