In order to promote and encourage access to credit, while reinforcing the public's confidence as well as legal certainty, the Law on Movable Asset Guarantees has been approved.

Law No. 08/2022, of 6 June 2022, introduces a new legal framework for movable asset guarantees, employing a consistent and more functional approach. The movable asset guarantee regulated by this statute is intended to replace the pre-existing types, namely: (i) the pledge; (ii) movable-asset mortgages; (iii) the assignment of credit as guarantee; (iv) transfer as guarantee; (v) the sale with retention of ownership; as well as (vi) any other legal transactions whose function is to create a security over a movable asset.

This statute also created the Central Movable Asset Guarantees Registry (Central de Registo de Garantias Mobiliárias, or "CRGM"), an entity that electronically registers all information on guarantees on movable assets and credit assignments. The CRGM centralizes and disseminates information regarding guarantees on vehicles, shares and intellectual property rights, registered in the respective registry offices, as well as information on the State's movable credit rights.

The new law came into effect on 11 June and determines that all transactions currently in progress must comply with the new regime within six months from the date of the commencement of the CRGM's operation, under penalty of losing priority for registration purposes.

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