NOTÍCIAS

The Legal Framework for Credit Security Interests (Law No. 14,711/2023) introduced significant changes to the legislation governing security in credit transactions in Brazil. Among the main innovations is the possibility of using the same real property as security in multiple credit transactions, provided the order of priority among creditors is respected.

The so-called "second-layer security" (garantia de segundo andar) allows a property already subject to a fiduciary transfer of title (alienação fiduciária) in one transaction to be reused as security in a new transaction, up to the amount exceeding the outstanding balance of the first. This significantly expands access to credit for companies and individuals who own real estate.

Another relevant innovation is the creation of the Security Agent (Gestor de Garantias), a role that centralizes the management of security interests in transactions with multiple creditors. For the capital markets, this facilitates the structuring of securitization transactions and the issuance of CRIs and CRAs (real estate and agribusiness receivables certificates). We recommend that companies in fundraising processes assess the benefits of these new possibilities with their legal counsel.