The use of accounts receivable as collateral

Abstract

The present paper aims to demonstrate the relation between property law and the use of credit derived from accounts receivable to secure an obligation. Even though such credit is not included in the concept of tangible assets, which are predominantly regulated by property law, such fact does not prevent it from securing obligations, whether or not credit derived from accounts receivable is considered to constitute a security interest. Also, such credit shall be considered to the extent of its value, in the sense the remainder shall be returned to the debtor if the value exceeds that of the secured liability, whereas if deemed as insufficient, the remainder of the debt shall be considered as unsecured credit.