ARGENTINA Law and Practice Contributed by: Sebastián P. Vedoya, Sergio Arbeleche and Dolores Cattaneo, Bruchou & Funes de Rioja
be in the secured party’s possession. Moveable property, such as equipment, motor vehicles, raw materials, products and spare parts, can be subject to registered pledges. Moveable assets that are fixtures as a result of moral accession, including machinery, equipment, instruments, animals and vehicles employed within a mining concession for its development on a permanent basis, can also be subject to registered pledges. No intangible assets can be pledged by means of a registered pledge, except for trade marks. Fideicomisos (Trusts) Fiduciary assignments or trusts ( fideicomisos ) as security under Argentine law, are commonly used as a security arrangement in Argentina. Under a fideicomiso as security, all of the col - lateral is transferred, usually by means of a fidu - ciary assignment of the assets to be conveyed into the fideicomiso to a trustee ( fiduciario ) (the “Security Trustee”), which segregates the assets and holds them as fiduciary property for the designated beneficiaries. The designated ben - eficiaries would be the secured parties, to the extent of their interests, and the grantor, to the extent of any residual interest. Property acquired after the fideicomiso as security is created can be either directly acquired by the Security Trus - tee or incorporated from time to time into the trust by means of new assignments. Fideicomisos may be created by private agree - ment under Argentine law. Should the trust assets be rights in personam (ie, contractual or legal rights), rules relating to the assignment of rights apply and the obligor must be served notice of the fiduciary assignment. In addition, any registrations or filings normally required to transfer a specific asset (eg, motor vehicles, real estate, shares and mining concessions) must be made to effect a transfer of the assets to the Security Trustee. A fiduciary assignment oper -
ates to convey the trust assets (subject to the debtor’s reversionary interest) from the estate of the debtor to the trustee. As a result, no registra - tion of the assignment is required (other than as referred to in the preceding paragraph) to per - fect the trustee’s interest against creditors of the debtor. Fideicomisos as security may permit creditors to have possession of, and to continue to oper - ate, the encumbered assets while the manner of ultimate realisation is decided without the need of judicial intervention, provided that the Secu - rity Trustee already holds the assets as fiduciary property for the benefit of the secured creditors. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Through the enactment of Law 27,742 which contains the RIGI regime (Incentive Regime for Large Investments) which includes the min - ing sector, Argentina has finally found the key to unlock the construction decision on many projects that were in the pipeline; particularly copper projects. The facilitation and incentives that RIGI offers has helped and will continue to help in the investment decision-making process. Projects qualifying under RIGI have a material reduction of the total tax burden with respect to the federal taxes outlined in 4.1 Mining and Exploration Duties, Royalties and Taxes and 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects (please see the Argentina Trends & Developments chapter in this guide , which further explains the RIGI regime). It is fore - seen that many of the large copper projects will make the submission to qualify under RIGI and make a favourable decision in connection with investing in the construction for the exploitation
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