Countries › Panama › Guide › 10. Capital markets and finance › Secured lending in Panama: the movable property mortgage of Ley 129 de 2013, registration, priority and out of court enforcement

Secured lending in Panama: the movable property mortgage of Ley 129 de 2013, registration, priority and out of court enforcement

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Last verified: 2026-10-29 · Status: Stable

Ley 129 de 2013 lets any person, Panamanian or foreign, grant a movable property mortgage (hipoteca de bien mueble) over specific assets, generic categories, inventory, receivables and future assets to secure present or future obligations. The security takes effect against third parties by registration, priority runs from the registration time, and a public deed is needed only for Registro Público filings of B/.20,000 or more. If the contract provides for it, the creditor can enforce out of court through a designated representative, with limited grounds for opposition.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates freely; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar and that the dollar circulates without restrictions in commercial and financial transactions (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Registration of movable security interests	Registro Público or specialised register textLey 129 de 2013 arts. 31, 32, as of 2026-10-29 · in force
Secured amount from which a public deed is needed for a Registro Público filing	20000 PABLey 129 de 2013 art. 10, as of 2026-10-29 · in force
Out of court enforcement of movable collateral	Allowed if agreed in the contract textLey 129 de 2013 arts. 43 to 51, as of 2026-10-29 · in force
Days to notify the account debtor for an unregistered receivables mortgage	30 daysLey 129 de 2013 art. 20, as of 2026-10-29 · in force
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos); Ley 84 de 1904 art. 1, as of 2026-10-29 · in force

The rule

1. A movable property mortgage may secure obligations of any kind, present or future, determined or determinable, and may cover one or several specific movable assets, generic categories of movables, or all of the grantor's present and future movables.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 2, 4, 6, 2013-12-31 official text · verified 2026-10-29

2. Any natural or legal person with legal capacity, national or foreign, may grant a movable property mortgage or be a secured creditor; an owner may grant successive mortgages over the same asset if it notifies each creditor in writing.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 8, 9, 2013-12-31 official text · verified 2026-10-29

3. The mortgage is created by written contract. Where it is registered in the Registro Público, a public deed is required if the secured amount is B/.20,000 or more; below B/.20,000, or when it goes to a specialised register, a public deed is not required.
Cost to do it: Notarial deed only for Registro Público filings of B/.20,000 (US$20,000) or more; registry charges must be reasonable and cover administrative costs (art. 38).
Example: A B/.15,000 equipment mortgage is filed with the single registration form without a deed; a B/.250,000 inventory mortgage needs a public deed. / US$15,000 without a deed, US$250,000 with one.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), art. 10, 2013-12-31 official text · verified 2026-10-29

4. Mortgages over present or future receivables need no registration if the account debtor is notified within 30 days of the agreement; if the parties register instead, notice is not needed. The same rules apply to factoring, purchases of receivables and assignments of credit.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 16, 20, 2013-12-31 official text · verified 2026-10-29

5. The mortgage is enforceable against third parties and deemed created on registration in the Registro Público or the specialised register, through a single form signed by the parties (or a public deed where required).Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 31, 32, 2013-12-31 official text · verified 2026-10-29

6. Priority is set by the time of registration; a registered mortgage ranks ahead of any unregistered security regardless of contract or notarial dates. A pledge can be converted into a movable property mortgage without losing its rank by returning the assets and registering. Against other rights the mortgage has the priority of a pledge under Código Civil art. 1660 numeral 2.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 40 to 42, 2013-12-31 official text · verified 2026-10-29

7. Enforcement is judicial, or out of court if agreed in the contract, through a designated representative (notary, authorised conciliation, mediation or arbitration centre, lawyer or law firm). The creditor files an enforcement form with the register, which annotates it, and the representative notifies the debtor and grantor, who may hand over the asset (and recover any surplus over the debt, based on an agreed valuer) or oppose.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 43 to 48, 2013-12-31 official text · verified 2026-10-29

8. Opposition to out of court enforcement may rest only on full payment, limitation, or forgery or alteration of the signature, contract or registration; if the agreed procedure cannot be completed, the creditor may ask the court for an order to seize and deliver the asset and authorise its direct sale, and that order is not appealable.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), arts. 49 to 51, 2013-12-31 official text · verified 2026-10-29

9. A debtor or grantor who transfers, hides or moves the mortgaged assets abroad without the creditor's prior written consent commits misappropriation (apropiación indebida), except sales of inventory or changing pools covered by the mortgage.Ley 129 de 31 de diciembre de 2013 (hipoteca de bien mueble), art. 58, 2013-12-31 official text · verified 2026-10-29

Worked example

A bank lends US$2,000,000 (B/.2,000,000) to a Colón distributor against its revolving inventory and receivables. It registers one movable property mortgage over both categories by public deed (the amount exceeds B/.20,000) and agrees out of court enforcement through a law firm.
If the distributor defaults, the bank files the enforcement form, the law firm notifies the borrower, and unless the borrower proves full payment, limitation or forgery, the bank can take the goods, or obtain a non appealable court order to seize and sell them directly.
Sales of inventory in the ordinary course stay lawful; moving the stock abroad without consent is a crime under art. 58.

Step by step

Search the Registro Público for prior registrations over the assets.
Sign the mortgage contract describing the assets (specific or by category) and the secured obligations; use a public deed for Registro Público filings of B/.20,000 or more.
Register with the single form, or notify account debtors within 30 days for receivables.
Include an out of court enforcement clause naming the representative and a valuer.
Register partial or total releases when the debt is paid.

Common traps

Priority depends on registration time, not on the contract date; register on signing.
Out of court enforcement exists only if the contract provides for it.
For receivables, missing the 30 day notice without registering leaves the security unperfected.

Sources

← Investment funds in Panama: registered, foreign and private funds, investment manager licences and SMV feesTrusts in Panama: Ley 1 de 1984 trusts and the trust company licence of Ley 21 de 2017 (B/.150,000 capital, B/.250,000 guarantee) →

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