Contributed By Gonzalez Calvillo, S.C.
The granting of universal liens is permitted under Mexican law and must be structured either under a non-possessory pledge or a security trust. It is important to contractually agree the terms and conditions under which future assets will automatically become part of the corresponding collateral.
Another structure that can be used for such purposes is the industrial mortgage, which allows the grantor to collateralise all the assets of a company as a commercial unit. However, this structure is only available to Mexican financial institutions.