State Act

Code of Comunidades of 1961

Art. 423 – It is lawful to any sharesholders to seek provisional registration of charges in his share certificates registered in his favour. §1. Such registration may be done on the strength of the application of the shareholder, with his signature attested in accordance with article 412 and its paragraph 2, and from there it will be reflected the type of charges to be registered, its terms, the name and residence of the person in whose favour the charge is created. §2. When the shareholder is present or his attorney produces the application and the respective shares, a note will be taken of their presentation in accordance with the article 433, and the respective registration shall lapse, if within 30 days is not converted into final by the person in whose favour the charge is created. §3. The effect of conversion of provisional registration into permanent shall have retroactive effect from the date of presentation of application for provisional registration for the purpose of preference or other legal effects. §4. A shareholder who secure provisional registration may submit an application, in accordance with paragraph 2, requesting for its cancellation, proving by declaration, signed by the person in whose favour the charges was created, with the signature authenticated by the public notary, that the act or contract for whose security the provisional registration was made, was not executed.