Debentures with special security (art. 333 LGS)
Article 333 of the General Companies Law governs special security: it charges specific assets that may be mortgaged, subject to the requirements of a mortgage.
What article 333
Article 333 governs debentures with special security.
The issue of debentures with special security charges specific assets of the company susceptible of mortgage to their payment. The special security must be specified in the issue deed with all the requirements demanded for a mortgage, and it shall be recorded in the corresponding registry.
Source: Law 19.550, art. 333 — InfoLEG (updated official text)
Commentary
It is the strongest security: it operates like a mortgage over specific assets. The debenture holder has a specific privilege over those assets, with the security of a registered right in rem.
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