1E9Ct5D

5.2. Special Mortgages5.2.1. IndustrialThese mortgages are created over an entire unit of an industrial, agricultural, ranching,mining, forestry, commercial, or service enterprise in favor of a credit institution. Sucha guarantee includes and encompasses any applicable authorization or concession, aswell as all of the real or personal property used in the mortgaged property’s exploitation,considered as a single unit.This type of mortgage is generally formed in order to guarantee fixed-asset loans,which the borrower is obligated to invest in the purchase or installation of machinery,or in the construction of projects or works that are necessary for the development of theborrower’s business, or for the purchase of real or personal property. These loans areguaranteed either as a group or individually with the assets of the company to whosedevelopment the loan funds are destined.One fundamental characteristic of this type of guarantee is that, with the exception ofcreditors having title over property in possession of a borrower undergoing bankruptcyproceedings and previously recorded mortgages, the lender will have a priority in thepayment of its debt with the product of the encumbered property superior to any rightsother lenders may have.An industrial mortgage should be identified as such in the fixed-asset loan contract,which shall be granted in a private (unnotarized) document signed in triplicate, beforetwo witnesses, ratified before an authority of the Public Registry and recorded in thePublic Registry of Property of the jurisdiction in which the property is located, at whichpoint the contract will be enforceable against third parties. When the fixed-asset loanis granted by a credit institution, the parties will be entitled to enter into this contractin a sealed writing executed before a commercial notary public, in a public instrument,or a private document, in the latter case signed in triplicate and ratified before a certifyingpublic official.201Financing Guarantees5.2.2. Ships and aircraftThe maritime mortgage is a contract through which the owner of a vessel or naval structureconstructed or in the process of construction constitutes an in rem right in favor ofthe lender in order to guarantee payment of an obligation with the proceeds from thesale of said property, with a priority in payment superior to all other lenders, accept forcertain preferences specific to maritime law.Maritime vessels are the collateral of this security interest in property, which is to sayall constructions used to navigate, regardless of their type and dimensions, as well asnaval structures, which include floating or fixed constructions that do not navigate butcarry out in the water functions complementary or auxiliary to maritime, river-bound,