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Taking security in Chile: non possessory pledges and the Registro de Prendas sin Desplazamiento, mortgages, concession pledges, ranking of creditors and enforcement

Last verified: 2026-10-26 · Status: Stable

Lenders in Chile take security over movable assets, receivables, shares and concession rights through a single non possessory pledge that the debtor keeps using, created by public deed or notarised private document and effective against third parties only from registration in the Registro de Prendas sin Desplazamiento kept by the Civil Registry. Land is secured by mortgage, granted by public deed and valid only once registered in the Conservador de Bienes Raíces. Pledge creditors rank in the second class and mortgage creditors in the third, behind first class claims such as wages and taxes, and the pledge deed itself is an enforceable title.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (Ley Nº 18.840 art. 44). UF figures use the SII value of CLP 41,221.08 per UF for 26 October 2026 and UTM figures the October 2026 value of CLP 72,151. Conversions are for orientation only; the legal thresholds are set in UF or UTM.

Key facts

Registry for non possessory pledges over movables	Registro de Prendas sin Desplazamiento (Servicio de Registro Civil e Identificación) textLey Nº 20.190 art. 14, law art. 25 and 28, as of 2026-10-26 · in force
Maximum Civil Registry fee per pledge registry act	1 UTMLey Nº 20.190 art. 14, law art. 28, as of 2026-10-26 · in force
Days for the notary to send a pledge for registration	3 business daysLey Nº 20.190 art. 14, law art. 24, as of 2026-10-26 · in force
Mortgage validity condition	Public deed registered in the Conservador de Bienes Raíces textCódigo Civil art. 2409 and 2410, as of 2026-10-26 · in force
Maximum extent of a limited mortgage	Twice the main obligation textCódigo Civil art. 2431, as of 2026-10-26 · in force

The rule

1. A non possessory pledge secures own or third party obligations over one or more corporeal or incorporeal movables, with the grantor keeping possession and use. The contract is solemn: it, its amendments and release are granted by public deed or by private document with signatures authenticated by a notary and notarised (protocolizado) in that notary's register. It must identify the parties, the secured obligations or that it is a general security, the pledged assets, and any limit amount. Any obligations, present or future, determined or not, can be secured, over any present or future movables; ships and aircraft follow their own laws.Ley Nº 20.190 (Diario Oficial 5 June 2007), article 14, non possessory pledge law, Art. 1 to art. 5 of the law in article 14, 2007-06-05 official text · verified 2026-10-26

2. Pledges can also be granted over public works concessions (and Treasury payments and future revenues, only in favour of the project's financiers or bondholders), port concessions, subsoil concessions, onerous concessions over State land, sanitary concessions and other concessions their laws allow. Pledges over registered credits must be notified to the debtor through a court or notary; pledges over book entry securities are recorded in the book entry register or with the securities depository. Pledges over future assets become real rights when the assets come into existence, dated from registration.Ley Nº 20.190, article 14, non possessory pledge law, Art. 6 to art. 9, 2007-06-05 official text · verified 2026-10-26

3. The real right of pledge is acquired, proved and kept by registering the pledge contract in the Registro de Prendas sin Desplazamiento kept by the Servicio de Registro Civil e Identificación, and is enforceable against third parties only from that date; registrations are made in strict order of filing. Within three business days of signing (excluding Saturdays) the notary must send the pledge, amendments or releases for registration. Several pledges may burden the same asset, ranking by registration date. The Civil Registry may charge fees for registrations and certificates set by decree, never above 1 UTM per act.
Cost to do it: Registry fees capped by law at 1 UTM per act (about CLP 72,151 or US$73); notary costs for the deed or authentication and protocolización are additional.Ley Nº 20.190, article 14, non possessory pledge law, Art. 16, art. 24, art. 25 and art. 28, 2007-06-05 official text · verified 2026-10-26

4. The pledge creditor is paid with the preference of art. 2474 of the Civil Code for the whole credit, interest, costs and expenses, extended to insurance on the pledged asset and damages owed by third parties. The public deed or authorised copy of the pledge has executive force without prior recognition for obligations it states precisely; for receivables the creditor may have the debtor of the pledged credit pay into court. Other pledge creditors are notified and paid from the auction in their order. Assignment of a secured credit carries the pledge only if the registry records the credit and the possibility of assignment. When a specific pledge is fully paid the creditor must sign the release within 45 days.Ley Nº 20.190, article 14, non possessory pledge law, Art. 15, art. 27, art. 30, art. 31, art. 37 and art. 38, 2007-06-05 official text · verified 2026-10-26

5. A mortgage is a pledge over real estate that stays in the debtor's possession. It must be granted by public deed, which may be the same as the loan contract, and registered in the Registro Conservatorio (real estate registry); without registration it has no value and its date counts from registration. Mortgage contracts signed abroad create a mortgage over property in Chile if registered in the competent registry. The owner may always sell or further mortgage the property despite any contrary clause. A mortgage may be limited to a set amount, but never extends beyond twice the known or presumed amount of the main obligation.Código Civil, DFL Nº 1 of 2000 (Diario Oficial 30 May 2000), Art. 2407, art. 2409, art. 2410, art. 2411, art. 2415 and art. 2431, 2000-05-30 official text · verified 2026-10-26

6. The causes of preference are privilege and mortgage, and they pass with the credit to assignees. Pledge creditors are second class credits over the pledged asset; mortgage creditors form the third class, paid from each mortgaged property by the date of their mortgages in a separate proceeding; first class credits (among them court costs in the general interest, workers' pay and statutory severance within limits, and withholding and surcharge taxes) reach mortgaged property only if the debtor's other assets are not enough.Código Civil, Art. 2470, art. 2472, art. 2474, art. 2477 and art. 2478, 2000-05-30 official text · verified 2026-10-26

Asset	Security	Formality	Perfection	Ranking
Equipment, inventory, vehicles, receivables, shares	Non possessory pledge (Ley Nº 20.190)	Public deed or notarised private document	Registro de Prendas sin Desplazamiento	Second class (CC art. 2474), by registration date
Book entry securities	Non possessory pledge	Same	Registro de Prendas plus book entry register or depository	Second class
Public works or other concessions	Concession pledge under Ley Nº 20.190 art. 6	Same, plus marginal notes where required	Registro de Prendas plus concession registry	Second class
Land and buildings	Mortgage (CC art. 2407)	Public deed	Conservador de Bienes Raíces	Third class (CC art. 2477), by date

Main forms of security in Chile

Worked example

A Chilean bank lends a solar developer CLP 9,865,800,000 (US$10 million). It takes a mortgage over the land, by public deed registered at the Conservador de Bienes Raíces (Código Civil art. 2409 and 2410), and a non possessory pledge over the panels, the project company's shares and its power sale receivables, by public deed registered in the Registro de Prendas sin Desplazamiento within days of signing (Ley Nº 20.190 art. 14, law art. 2, 5, 24 and 25). The pledged receivables are notified to the offtaker.
If the developer defaults, the bank sues on the pledge deed, which is an enforceable title, has the offtaker pay into court, and ranks second class on the pledged assets and third class on the land (law art. 30 and 31; Código Civil art. 2474 and 2477). Stamp tax on the loan itself is covered on the stamp tax page.

Step by step

1. List the collateral by type: real estate, movables, receivables, shares, concessions.
2. Draft the pledge in a single deed covering all movables and rights, with the secured obligations or a general security clause and any limit amount.
3. Sign before a notary (public deed, or private document with authenticated signatures and protocolización).
4. Confirm the notary sends the pledge to the Registro de Prendas within 3 business days; obtain the registration certificate.
5. Notify pledged receivables to the debtors, record pledges over book entry securities with the depository, and add marginal notes for concessions.
6. For land, sign the mortgage deed and register it at the competent Conservador.
7. On repayment, sign the release within 45 days.

Common traps

Relying on an unregistered pledge: it has no effect against third parties until registered (law art. 25).
Forgetting to notify a pledge over a registered credit: without notice or acceptance it cannot be enforced against the credit's debtor (law art. 7).
Agreeing a no sale clause in a mortgage: the owner can always sell or re mortgage (Código Civil art. 2415).
Capping a mortgage above twice the debt, which the debtor can have reduced (art. 2431).
Assigning a secured loan without the registry recording the possibility of assignment: the pledge does not follow (law art. 38).
Assuming a pledge outranks everything: first class credits such as workers' pay and withholding taxes are paid first if other assets are short (Código Civil art. 2472 and 2478).

Sources

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