Grantors of Financial Trusts Authorized to Issue Debt Securities

The Productive Financing Law No. 27,440, passed by the Argentine Congress on May 9, 2018, had introduced certain modifications to the chapters of the Argentine Civil and Commercial Code that regulate trusts (in particular, to Sections 1673 and 1693), indicating that (i) other than financial entities, only companies authorized by the Argentine Securities Commission (“CNV”, after its acronym in Spanish) may act as trustees in financial trusts, and (ii) in addition to the trustee and third parties, the grantor may also issue debt securities guaranteed by the trust property.

Following these guidelines, the CNV issued Resolution No. 738, which adapted different Sections of the CNV Rules to the abovementioned modifications expressly recognizing the grantors’ new faculties, and establishing that the CNV’s register of trustees need only comprise those acting specifically as financial trustees.