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Secured lending and collateral in Uruguay: mortgages, pledges with and without delivery, guarantee trusts and guarantor rules

Last verified: 2026-10-27 · Status: Stable

Real estate is taken as security through a mortgage by public deed registered in the property registry, which has no effect until registered and may not secure more than twice the stated debt (Código Civil art. 2322, 2323 and 2333). Movables, receivables, intellectual property, crops, forests, vehicles and whole businesses can be pledged without delivery to any creditor, effective against third parties from registration, with enforcement after a three business day notice (Ley Nº 17.228 art. 3, 4, 5, 7 and 14). Guarantee trusts ring fence assets for a lender, are exempt from the transfer tax and may name a financial intermediary as both trustee and beneficiary; a mortgagee or pledgee notified to the insurer reaches the insurance indemnity (Ley Nº 17.703 art. 9 and 42; Ley Nº 19.678 art. 44).

USD figures use UYU 40.21 per US dollar, the BCU quotation for DLS. USA BILLETE on 27 October 2026; amounts in Unidades Indexadas (UI) use UYU 6.6792 per UI, the BCU quotation for 27 October 2026, and amounts in Unidades Reajustables (UR) use UYU 1,940.77, the IMPO published UR value for September 2026 (the latest published on 27 October 2026). All were retrieved on 27 October 2026. Conversions are for orientation only.

Key facts

Mortgage formalities	Public deed and registration; effective from registration Código Civil art. 2323, as of 2026-10-27 · in force
Maximum amount a mortgage may secure	2 x stated debtCódigo Civil art. 2333, as of 2026-10-27 · in force
Non possessory pledge available	Yes, over any identifiable asset including receivables, IP and whole businesses Ley Nº 17.228 art. 3, as of 2026-10-27 · in force
Notice before enforcing a non possessory pledge	3 business daysLey Nº 17.228 art. 14, as of 2026-10-27 · in force
Guarantee trust with lender as trustee and beneficiary	Allowed for financial intermediaries; transfer tax exempt Ley Nº 17.703 art. 9 and 42, as of 2026-10-27 · in force
Deadline to notify guarantor of default (loans up to UI 2,000,000)	60 daysLey Nº 18.212 art. 27, as of 2026-10-27 · in force

The rule

1. A mortgage is a pledge created by agreement, with the formalities of the law, over specific real estate that stays in the debtor's possession. It must be granted by public deed and registered in the relevant registry; without both it has no value, and its date counts only from registration. Mortgages granted abroad over Uruguayan real estate are valid if registered in Uruguay. Real estate may not be mortgaged for more than twice the known or estimated amount of the debt, which the deed must state unequivocally.
Cost to do it: Notarial fees and registry fees for the deed are not quantified on this page.
Example: A loan of UYU 40,210,000 (US$1,000,000) can be secured by a mortgage over property, but the mortgage may not secure more than UYU 80,420,000. / A mortgage signed in New York over a Montevideo office is valid once registered in Uruguay; its priority runs from the registration date.Código Civil, Art. 2322, art. 2323, art. 2324 and art. 2333, 1994-10-19 official text · verified 2026-10-27

2. Under the Civil Code pledge a movable is delivered to the creditor as security, and the pledge always accompanies a principal obligation. The non possessory pledge law instead lets the grantor keep the asset on the creditor's behalf. Anything concretely identifiable may be pledged without delivery: livestock and fish stocks, machinery and equipment of a farm, shop or plant, crops and plantations, minerals, rights to performance, intellectual property and other intangibles including receivables, vehicles, forests, and whole commercial or industrial establishments (excluding goods held for sale unless agreed). Replacement assets entering the same place may be covered if agreed, fruits are covered unless excluded, and the preference extends to insurance indemnities.
Cost to do it: Registry fees for the pledge are not quantified on this page.
Example: A dairy farm can pledge its herd and milking equipment to a bank and keep using them. / A software company can pledge its registered software rights and its receivables to secure a US$500,000 credit line.Código Civil; Ley Nº 17.228 (Non possessory pledge), Código Civil art. 2292 and art. 2293; Ley 17.228 art. 1, art. 2 and art. 3, 2000-01-07 official text · verified 2026-10-27

3. Non possessory pledges are registered in the National Registry of Non Possessory Pledges, except vehicles (Vehicle Registry), commercial and industrial establishments (National Commerce Registry) and industrial property (Dirección Nacional de la Propiedad Industrial). They may secure any obligation of the owner or of third parties in favour of any creditor, must be in writing, and are effective against third parties only from registration. The pledged goods must stay in the stated place unless the move is notified to the registry. The goods may be sold, but not delivered to the buyer before the creditor is paid unless the creditor consents in writing; hiding or moving pledged goods to avoid enforcement and disposing of them in breach are crimes punishable with three months' prison to four years' penitentiary, and abandoning them with three to fifteen months' prison.
Cost to do it: Registry fees are not quantified on this page.
Example: A pledge over a truck fleet is registered in the Vehicle Registry; an unregistered pledge cannot be asserted against a later buyer or creditor. / Selling a pledged machine worth US$80,000 and handing it over without the bank's written consent exposes the seller to criminal liability.Ley Nº 17.228, Art. 4, art. 5, art. 7, art. 8, art. 9, art. 10, art. 11 and art. 12, 2000-01-07 official text · verified 2026-10-27

4. If principal or interest is not paid on time, or an instalment is missed in an amortizing credit, the creditor may enforce over the pledged assets after a notarial, judicial or registered telegram demand giving the debtor three business days.
Cost to do it: Enforcement costs follow the procedural rules; they are not quantified here.
Example: A lender serves a registered telegram on 2 November 2026; it may move to enforcement after three business days. / The same three day notice applies to a pledge securing US$50,000 or US$5,000,000.Ley Nº 17.228, Art. 14, 2000-01-07 official text · verified 2026-10-27

5. A trust may not name the trustee as beneficiary, except a guarantee trust in favour of a financial intermediary. Transfers under a guarantee trust, into the trust and back to the settlor, are exempt from the transfer tax for both parties. The trust estate is immune from the trustee's creditors and, once created between living persons and registered, from the settlor's creditors except for fraud actions.
Cost to do it: Saves the real estate transfer tax that would otherwise apply on the transfer in and back.
Example: A bank acting as trustee of a guarantee trust holding a borrower's plant can also be its beneficiary. / A guarantee trust over land worth US$3,000,000 avoids the transfer tax on both legs.Ley Nº 17.703 (Trusts), Art. 7, art. 9 b) and art. 42, 2003-10-27 official text · verified 2026-10-27

6. The rights of mortgage and pledge creditors over insured goods extend to the insurance indemnity on those goods up to the amount owed, provided the security was created and notified to the insurer before payment. An insurer notified of the security may not pay without the secured creditor's consent or proof of repayment, except where the indemnity is repair or replacement.
Cost to do it: No cost beyond notifying the insurer.
Example: After a fire, a bank holding a mortgage over a warehouse and having notified the insurer receives the indemnity up to its loan balance. / If the bank did not notify the insurer, the insurer may pay the US$400,000 indemnity to the owner.Ley Nº 19.678 (Insurance Contract), Art. 44, 2018-10-26 official text · verified 2026-10-27

7. In credit operations up to UI 2,000,000, any default must be notified reliably to the guarantor within 60 days; until then the guarantor cannot be sued, and if notice comes more than 60 business days late the guarantor owes default interest only from notice. Guarantors who are or were directors, representatives or managers of the borrower company are excluded from this protection.
Cost to do it: No cost beyond the notice; UI 2,000,000 is about UYU 13,358,400 on 27 October 2026.
Example: A spouse who guarantees a family company's loan of UYU 4,021,000 must be notified within 60 days of any default. / A director who guarantees the company's US$100,000 loan is not protected by the notice rule.Ley Nº 18.212 (Interest Rates and Usury), Art. 27, 2007-12-05 official text · verified 2026-10-27

Security	Assets	Perfection	Key rule
Mortgage	Real estate	Public deed and registration	Up to twice the stated debt; priority from registration
Civil pledge	Movables delivered to creditor	Delivery	Accessory to a principal obligation
Non possessory pledge	Any identifiable asset, receivables, IP, businesses	Written contract and registration in the relevant registry	Enforcement after 3 business day notice
Guarantee trust	Any asset	Written trust, public deed for real estate, registration	Lender may be trustee and beneficiary; transfer tax exempt
Financial lease (crédito de uso)	Movables and real estate	Registration requested by lessor	Lessor keeps ownership; see leasing page

Main security interests (Código Civil; Ley Nº 17.228; Ley Nº 17.703; Ley Nº 16.072)

Worked example

Equipment financing: a bank lends a manufacturer UYU 20,105,000 (US$500,000) and takes a non possessory pledge over its production line. The pledge is signed in writing and registered in the National Registry of Non Possessory Pledges; if an instalment is missed, the bank sends a registered telegram and may enforce after three business days (Ley Nº 17.228 art. 7 and 14).
Mortgage sizing: for a US$2,000,000 loan (UYU 80,420,000) the mortgage deed must state the secured amount and may secure no more than US$4,000,000 (Código Civil art. 2333).

Step by step

Choose the security by asset: mortgage for real estate, non possessory pledge for movables, receivables and IP, guarantee trust for flexible enforcement, or a lease where the lender keeps title.
Run registry searches for prior liens on the asset.
Sign the security in the right form (public deed for mortgages and for trusts over real estate; written contract for pledges).
Register promptly: mortgages and pledges have no effect against third parties until registered.
Notify the insurer of the security and, for loans up to UI 2,000,000, diarize the 60 day guarantor notice after any default.

Common traps

An unregistered mortgage has no value at all, not even between the parties (Código Civil art. 2323).
A mortgage may not secure more than twice the stated debt, so open ended all monies mortgages need a stated maximum (art. 2333).
Pledged goods may not be moved from the stated place without notifying the registry (Ley Nº 17.228 art. 8).
For loans up to UI 2,000,000, missing the 60 day notice to a guarantor delays any claim against them (Ley Nº 18.212 art. 27).

Sources

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