Regulatory Alerts2024-06-05 | NRP-63Technical Standards to Register the Registry Effects on Mortgaged Properties in Favor of Financial Entities
The Technical Standards Committee of the Central Reserve Bank of El Salvador issued these norms to regulate the registry effects of mortgages held by financial entities, ensuring the protection of both mortgagor and creditor rights. The regulations establish that once a mortgage is registered, the property cannot be encumbered or transferred without the creditor's prior written consent, and allow for preventive annotations of credit approvals to secure priority. These standards apply to various financial institutions in El Salvador, mandate updated mortgage controls, and explicitly repeal previous regulations from 2005.
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