Digital Transformation of Negotiable Instruments in Mexico: What You Need to Know
On March 26, 2024, a decree was published in the Mexico’s Federal Official Gazette that amends the General Negotiable Instruments and Credit Operations Law (“LGTOC”), as well as the Law on Organizations and Auxiliary Credit Activities (“LOAAC”), with the purpose of regulating the granting of certificates of deposit issued electronically by Public Bonded Warehouses. What […]
Court issues ruling on the legality of service of process carried out by a private courier in the United States
The First Chamber of the Supreme Court of Justice of Mexico heard a case in which one person sued another who resides in the State of California, United States of America. The initiated trial was of a commercial nature. The judge ordered the summons to the defendant through a rogatory letter without specifying that it […]
International Civil Aviation Organization removes Mexican Civil Aviation from operational safety alert
On June 10th, 2024, the Federal Civil Aviation Agency (AFAC) issued a statement announcing that the International Civil Aviation Organization (ICAO) had removed Mexico’s civil aviation from an operational safety alert called “Significant Safety Concern,” as it was confirmed that all observations made during the audit conducted by AFAC were met at 100%. This alert […]
Mexico’s Competition Commission Fines Six Companies for Concentration Failures
Mexico’s Competition Commission (the Commission) fined six companies -more than 58 million pesos- dedicated to the sale of gasoline and diesel to consumers for failure to notify two concentrations to the Commission. According to the Mexican law a concentration occurs when entities, shares of stock, partnership interests, trusts or assets are combined by means of […]
Mexico’s Supreme Court renders judgment on the statute of limitations to bring a claim regarding damage insurance cases.
The First Chamber of Mexico’s Supreme Court of Justice (the “First Chamber”) issued a decision confirming that regarding damage insurance cases, when an accident occurs causing the death of a person, the statute of limitations to file a claim against the insurance company is not the two-year term established by the law but the five-year […]
Is it legally allowed to agree the payment of interests when executing a donation agreement?
ENGLISH VERSION Introduction: Two people entered into a donation agreement of movable property, in the agreement the donor determined that the donee should prove to the donor the use of the donated goods for the agreed purpose, otherwise the agreement would be cancelled. By not fulfilling the agreed purpose, the donor filed a lawsuit against […]
Senator submits initiative to amend laws regarding pledge bonds
ENGLISH VERSION On February 8, 2023, Senator José Narro Céspedes, member of the Parliamentary Group of the National Regeneration Movement Party, submitted an initiative to amend the General Law of Negotiable Instruments and Credit Transactions as well as the General Law of Organizations and Credit Auxiliary Activities,[1] with the purpose of considering the issuance of […]
The Mexican Competition Commission raises concerns on the initiative to amend the aviation regulatory framework proposed by Mexico’s president
ENGLISH VERSION Airlines’ officers, deputies, public servants and representatives of aviation and airport organizations met at the offices of the Chamber of Deputies to discuss Mexico’s president initiative to amend the Airports Law and the Civil Aviation.1 A representative of the Mexican Federal Competition Commission (Cofece) Mr. José Nery Pérez Trujillo mentioned that competition might […]
Mexican tribunal confirms what the correct proceeding is to demand the rendering of account from a company’s sole administrator
ENGLISH VERSION A Federal Court shed light by deciding that the proper proceeding to sue a stock company’s sole administrator to render accounts is by filing a commercial ordinary legal action as oppossed to a civil summary proceeding. The latter was the action filed by a company inaccurately. This decision is based on the criterion […]
What happens when a spin-off of commercial companies is used as a strategy to avoid paying creditors?
ENGLISH VERSION Introduction The spin-off of an entity (original corporation being spun-off from) involves the division of its corporate patrimony by contributing its liabilities, assets, and capital stock in two or more parts, to other emerging entities. When the original corporation is extinguished upon making such contribution, we talk about a total spin-off proceeding. On […]
If a judge decides that the interest rate agreed on a loan is excessive, what happens with the interests already paid?
ENGLISH VERSION Facts The First Chamber of the Supreme Court of Justice of the Nation (“First Chamber”) decided on different criteria of Collegiate Circuit Courts whether the reduction to the interest rate shall have retroactive effects on the interest already paid. [1] That is, if the reduction of excessive or usurious interest shall be applied […]
Amendments to the General Tourism Law are discussed
ENGLISH VERSION Initiative As a result of the cancellation of the Program for Sustainable Regional Tourism Development and Magical Towns (“PRODEMÁGICO” by its abbreviation in Spanish) in accordance with the 2019 National Expense Budget an Executive Order Draft was submited to the Senate to Add some provisions to the General Tourism Law (the “Draft”). It […]