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equirements for this process are the following: that there is no dispute and thatthere is an agreement between the parties, which is to say that the debtor mustagree to tender the pledged goods to satisfy its debt.This process begins with the lender’s formal petition for the debtor’s forfeiture ofpossession of the pledged goods made before a certifying public official. Once possessionis transferred to the lender, the lender becomes the legal depository of thegoods for the entire time that transpires from the deposit of the goods until their sale;b) The purpose of the judicial procedure (judiciae) is to secure the payment of a specific,liquid, and payable credit and to obtain the material possession of the goodsthat secure the credit through a non-possessory pledge on the condition that thecredit must be memorialized in a public (notarized) or private document and thatthe credit is payable under the agreed terms or in accordance with the provisionsof the General Law of Negotiable Instruments and Credit Operations and otherapplicable laws.When the lender sues to foreclose judicially, the suit documents should includethe relevant contract and a declaration of the debt balance and, if the lender is acredit institution, a certification of the debt balance.4. Working Capital LoansThis type of credit is distinguished from other types by virtue of the specific purpose forwhich the debtor is obligated to use the loan proceeds, since the debtor is obligated toinvest the loan in the acquisition of raw materials and the payment of direct labor services,as well as in the purchase of goods and services that are immediately related to theproduction process.Although this type of credit is not exclusive to credit institutions, these are the institutionswho generally offer these loans and who must make sure that the loan proceeds areused for the purposes outlined in the contract, because if it is shown that the loan wasnot used for such purposes due to the bank’s negligence, the latter will lose the privilegesof automatic and privileged guarantee that the lender enjoys in these contracts. Therefore,working capital loans, duly registered, will be paid preferentially relative to fixed assetloans, and both of these preferentially relative to subsequently recorded mortgages.197Financing Guarantees4.1. GuaranteesAs a general rule, the guarantees of the loans at issue are based on the goods acquiredwith the borrowed money; therefore, the working capital loan will be guaranteed withthe raw materials and materials acquired and with the products or benefits generatedfrom the loan, even when these may be future or pending.