Companies Act 19,550 · Article 332 — Common security
Debentures with common security (art. 332 LGS)
Article 332 of the General Companies Law defines common security: debenture holders are paid pari passu with unsecured creditors.
What article 332
Article 332 governs debentures with common security.
Official text · Act 19,550, art. 332
Debentures with common security shall collect their claims pari passu with unsecured creditors, without prejudice to the other provisions of this Section.
Source: Law 19.550, art. 332 — InfoLEG (updated official text)
Commentary
It is the weakest security: with no special privilege, the debenture holder collects pro rata together with the other ordinary creditors. In exchange, it usually offers a better yield.
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