The new Guarantee Framework (Law 14,711 of 2023), sanctioned by the Executive Branch on October 31, 2023, introduces significant changes to the guarantee system with the aim of reducing legal uncertainty and facilitating access to credit in Brazil. Among the changes, the following stand out: (i) the possibility of extending the fiduciary transfer of a property already transferred in fiduciary transfer to other transactions and (ii) the regulation of the guarantee agent.

It is important to note that a fiduciary transfer (FI) cannot be extended to any other creditor, and, in principle, this creditor must be the same as the creditor of the original transaction. There are, however, exceptions to this rule, such as the situation in which the debtor may establish a separate FI in favor of a different creditor if this creditor is the personal guarantor of the initial credit.

Furthermore, provision is now made for foreclosure of mortgages without the need to go through the court system (extrajudicially), making the process from foreclosure to consolidation of ownership less costly and faster for the creditor. In this sense, the law creates the role of the Collateral Agent, appointed by the creditors, whose role involves managing the assets and enforcing the collateral, with the power to act in legal proceedings involving the secured credit.