Penner & Associates - Mexico Law Firm and Business Consulting for Mexico

For professional assistance & information on legal & business matters regarding Mexico and Latin America, please contact:

ATTORNEYS AT LAW FOR MEXICO
Please contact us at our Mexico offices located at:
Apartado Postal No. 9
San Miguel de Allende, Guanajuato, Mexico
TEL. US.: (800) 856-5709
Tel: (415) 152-3648

e-mail E-MAIL

 

BUSINESS CONSULTANTS FOR MEXICO
REAL ESTATE BROKERAGE ASSISTANCE FOR MEXICO
At our Phoenix or Mexico Offices
P.O. Box 42773
Phoenix, Arizona 85080
Tel: (623) 242-7442

e-mail E-MAIL

OUR MEXICO CITY OFFICES
Montecito no. 38 Piso 37 Oficina 37
Edificio World Trade Center
Colonia Napolis C.P. 03810
Mexico, Distrito Federal
Tel: (55) 5351-0438

e-mail
E-MAIL

 

 

Books

1. REAL ESTATE IN MEXICO AND THE FOREIGNER. Published in English by Vernon Penner. It gives a detailed accounting of the elements relative to issues of real estate ownership, title, registration, the parties involved, trust holding, limitations, use and many other subjects regarding private property in Mexico. Price $35.00 Dls. U.S. + $10.00 shipping and handling (Please send payment to Vernon Penner). If you wish an electronic version (via e-mail) then there is no shipping or handling costs.

2. PAMPHLET ON THE "A B C's OF REAL ESTATE TRANSACTIONS IN MEXICO FOR FOREIGNERS. Published in English by Vernon Penner. A smaller publication than the preceding, however, good for the individual that wishes to purchase a house or condominium in Mexico. It also provides a basic step by step description of the parties involved in a normal real estate transaction in Mexico (seller, buyer, real estate agent, notary public, attorney, trust bank, taxing authorities, government authorities, registries, title documents, types of transactions, powers of attorney and other related issues). Price $15.00 Dls. U.S. + $5.00 shipping and handling (Please send payment to Vernon Penner). If you wish an electronic version (via e-mail) then there is no shipping or handling costs.

3. PAMPHLET ON THE "A B Cs" OF BUSINESS IN MEXICO FOR THE FOREIGNER Published in English by Vernon Penner. A smaller publication, good for the individual that wishes to understand the basics of doing business in Mexico. Price $15.00 Dls. U.S. + $5.00 shipping and handling (Please send payment to Vernon Penner). If you wish an electronic version (via e-mail) then there is no shipping or handling costs.

4. LABOR LAW OF MEXICO AND BUSINESS. Published in English by Vernon Penner. It gives a detailed accounting of the elements relative to issues of labor matters in Mexico. Price $35.00 Dls. U.S. + $10.00 shipping and handling (Please send payment to Vernon Penner). If you wish an electronic version (via e-mail) then there is no shipping or handling costs.

5. CREDITORS REMEDIES IN MEXICO Published in English by Vernon Penner. It gives a detailed accounting of the elements relative to issues of creditors remedies matters in Mexico. Price $35.00 Dls. U.S. + $10.00 shipping and handling (Please send payment to Vernon Penner). If you wish an electronic version (via e-mail) then there is no shipping or handling costs.

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INDEXES

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Books

1. REAL ESTATE IN MEXICO AND THE FOREIGNER - BOOK - EDITION 2007

Table of Content

1 . Introduction
1.1 Cause of Study
1.2 General Terms
1.3 Recent Changes in Mexican Law

2. The Legal System
2.1 Civil Law Systems vs. Common Law Systems
2.2 The Constitution of Mexico and Foreigners
2.3 Real Estate Laws of Mexico

3. Foreigners in Mexico
3.1 Foreigners
3.2 Foreigners and Business

4. Knowing you are going to Mexico

5. Documentation Valid in Mexico
5.1 Agreements and Contracts

5.2 Documents of Evidence
5.3 Preconstituted Execution Documents
5.4 Documents of Evidence and Preconstituted Execution
5.5 Public Instruments
5.6 Private Documents vs Public Documents

6. Real Estate Definitions
6.1   The Civil Codes of Mexico
6.2   Definition of Real Estate
6.3   Separable Personal Property
6.4   Miscellaneous Definitions
6.4.1 Personal Right
6.4.2 Real Right
6.4.3 Real Estate
6.4.4 Immovable Property
6.4.5 Personal Property
6.4.6 Real Property

7. General Legal Aspects of the Law on Real Estate (Mexico vs. Arizona)
7. 1 The Legal Foundation of the Law on Real Estate
7. 1.1 Federal Constitutions
7. 1.2 State Constitutions
7. 2 State Laws on Real Estate
7. 3 Special Legal Aspects (U.S.A.)
7. 4 Special Legal Aspects (Mexico)

8. Negotiating Real Estate Purchases in Mexico
8.1 Terms

9.  Foreign Investment
9.1 Governing Laws
9.2 Limitations
9.3 The Foreign Investment Law
9.3.1 Exceptions to the Rule

10. Restricted Land and Water Zones
10.1   Federal Mexican Constitution
10.1.1 Article 27
10.1.2 Perrogatives of the Mexican Nation
10.1.3 Fraction 1
10.1.4 The Restricted Zone
10.2   Result of the Desirability of the Restricted  Zone
10.2.1 The New Legal Structure 

11. The Calvo Clause
11.1 Application
11.2 The Clause

12. Sales Agreements (General)
12.1   Preparatory Sales Agreements
12.1.1 Precaution
12.1.2 Personal Rights
12.1.3 No Rights of Preference
12.2   Sales Agreements
12.2.1 Exception to the General Rule
12.2.2 Additional Exception to the General Rule
12.2.3 The General Rule
12.3   Registry
12.4   Appraisals

13. Trusts
13.1 Differences (U.S. vs. Mexico)
13.2 Real Estate Trusts
13.3 Border and Coastal Trusts

14. Condominium and Timeshare
14.1 Condominium
14.2 Vertical Condominium
14.3 Horizontal Condominium
14.4 Mixed Vertical and Horizontal Condominium
14.5 Legal and Contractual Restrictions
14.6 The Condominium Law
14.7 Condominium Regime Agreement
14.8  Co-Owners' Meetings

14.9  Timesharing
14.10 Condominiums in the Prohibited Zone
14.11 Club Memberships

15. Rental and Leases
15.1 The Law
15.2 Personal Right
15.3 Public Registry
15.4 Length of the Lease

15.4.1. The Organic Law of Fraction I of Article 27 of the Federal Mexican Constitution
15.4.2. The Federal Nationalization and Naturalization Law of Mexico
15.4.3. Presidential Decree of June 29, 1944.
15.4.4. The Foreign Investment Law
15.4.5. The Secretariat of Foreign Relations. 
15.4.6 Restricted Zone
15.5 Contract Formalities
15.6 Co-Owned Property
15.7 Timesharing
15.8 Continuance of the Lease

16. Notary Publics
16.1 Mexico vs. U.S.
16.2 A Notary Public is an Attorney
16.3 Appointment of a Notary Public
16.4 The Notary Public Law
16.5 Acts They Perform
16.6 Public Brokers
16.7 Mexican Consuls as Notary Publics
16.8 Public Archives of the States of Mexico
16.9 The "Protocol on Uniformity of Powers of Attorney which are to be Utilized Abroad"
16.10 The Hague Convention on the “Apostille”

17.  Priority of Liens
17.1 General Security vs. Specific Property Security
17.2 Public Registry of Property and Commerce
17.3 Employee Benefits, Taxes, Social Security, INFONAVIT and Similar Governmental    Liabilities

18. Mortgages
18.1 A Mortgage is a Real Right
18.2 What Else is Included in a Mortgage
18.3 Who can Execute a Mortgage
18.4 Mortgage Registration
18.5 Reduction of the Mortgage
18.6 The Mortgage and Third Parties
18.7 Priority Liens
18.8 Enforcement
18.9 Cancellation
18.10 Foreigners Taking Title Under Mortgage
18.11 Possession of Public Service Property

19.  Public Registries of Property and Commerce
19.1 Certificates of Registry
19.2 Purpose of the Registry
19.3 The Registry is Public

20.  Interest Charged in Mexico
20.1 Civil Interest
20.2 Commercial Interest
20.3 Usury

21.  Mining
21.1 Mexican Companies in Mining
21.2 Concessions
21.3 The Public Mining Registry

22.  Agriculture and Ranching
22.1 Historical Background
22.2 Communal Farms
22.3 Size of the Ranch or Farm
22.4 Foreigners in Ranching and Farming
22.5 Mexican Companies in Ranching and Farming
22.6 Rural Land Trusts and Leases

23.  Court Actions in Mexico
23.1 Types of Suits
23.2 Executive Suits on Real Rights(In Rem-Civil)
23.3 Mortgage Suits-Civil
23.4 Ordinary Suits-Commercial
23.5 Executive Suits-Commercial
23.6 Special Mercantile-Commercial
23.7 Ordinary Suits-Civil
23.8 Summary Suits-Civil
23.9 Oral Suits-Civil
23.10 Executive Suits-Civil

24. Agency in Mexico
24.1 Representation in Mexico
24.2 Powers of Attorney Terms
24.3 Unauthorized Representatives
24.4 Document Form
24.4.1 Verbal Agency
24.4.2 Letter without Ratification
24.4.3 Public instrument and Letter with Ratification
24.4.4 Alternate Form
24.5  Mexican Consulates
24.6  Real Estate Agency Registry Law in Sonora.
24.6.1 The Sonoran Registry of Agents.
24.6.2 Sonoran Real Estate Agent Disciplinary Control.

25  Title Insurance
25.1 Title Checking
25.2 Certificate of Title and owner
25.3 Example of a Title Insurance Policy

26. Immigration
26.1     General Classifications
26.1.1  immigrants
26.1.2  Non-Immigrants
26.1.3  Marriage to Mexican Nationals
26.2     Status Renewals
26.3     Registry of Foreigners
26.4     Permits to Acquire Title
26.5     Foreigners that Can Hold Title
26.5.1  An Exception to the Rule
26.6     Foreigners that Can Hold Title on An Exceptional Basis
26.7     Receiving Title by Inheritance, etc.
26.8     Notary Publics and Commercial Brokers
26.9     What is Real Estate for the Immigration Authorities
26.10   After the Real Estate is Properly Acquired
26.11   The Trust

27.          Taxation
27.1        State Acquisition Tax
27.1.1     Mortgage Tax
27.1.2     Transfer Tax under the Title Trust
27.2        Federal Income Tax Law
27.2.1     Permanent Establishment for Business Activities
27.2.2     Mexico Residents Using Tax Credits from Abroad
27.2.3     Corporations and Other Organizations
27.2.4     Non-Profit Organizations
27.2.5     individuals
27.2.5.1  Income from Lease and Granting of Use or Enjoyment of Real Estate
27.2.5.2  Income from Transfer of Goods
27.2.5.2.1  Time Transferals
27.2.5.2.2  Where There Is No Consideration
27.2.5.2.3  Deductions
27.2.5.2.4  Partial Payments
27.2.5.2.5  Rights of Trust on Real Estate
27.2.6    Foreign Country Residents
27.2.7    Associations in Participation
27.2.8    Professional Associations

28. Corporations
28.1 Commercial Corporations of Mexico
28.2 General Partnership Corporations
28.3 Limited Partnership Corporations
28.4 Limited Responsibility Corporations
28.5 Anonymous Society Stock Corporations or General Business Corporations
28.6 Limited Partnership Stock Corporations
28.7 Cooperative Enterprise Corporations
28.8 Foreign Corporations
28.8.1 Registry of Foreign Corporations in Mexico
28.9   Associations in Participation

29.  Federal Agrarian Reform Department
29.1 Rural Land for Non-Farming or Non-Ranching Purposes

30. Legal Consul
30.1    Criteria for Choosing an Attorney Licensed in Mexico
30.1.1  Experience
30.1.2  Integrity
30.1.3  English

31. Assets Checks
31.1 Liquid Assets (Bankers and Accountants)
31.2 Fixed Assets (Attorneys and Accountants)
31.3 Others

 32. United States Embassy and United States Consulate in Mexico

 33. Federal Consumer Protection Authority

34. Disclaimer

2. PAMPHLET ON THE "A B CS" OF REAL ESTATE TRANSACTIONS IN MEXICO FOR FOREIGNERS - PAHPHLET - EDITION 2008

INDEX

Disclaimer.

1. Introduction.

2.  Parties Normally Involved.

    2.1  Seller.

    2.2  Buyer.

    2.3  Real Estate Agent.

    2.4  Notary Public.

    2.5  Attorney.

    2.6  Fiduciary/Trust Bank.

    2.7  Taxing Authorities (Federal, State and City).

    2.8  Ministry of Foreign Affairs.

    2.9  National Registry of Foreign Investment.

    2.10 Public Registry of Property.

    2.11 Immigration.

    2.12 Appraisers.

2.13              2.13    Others.  Ministries Tourism, Agrarian Reform, Urban Development.

    2.14 Escrow.

    2.15 Foreign Investment Definition.

    2.16 Title Insurance

    3.   Title Documents.

    3.1  Public Instrument Issued by Notary Public.

    3.2  Certificate of Ownership Registry.

    3.3  Court Order.

    3.4  Presidential, Agrarian or Governor Decree.

    4.   Types of Transactions and Costs.

    4.1  Preliminary Sales Agreements.

    4.2  Straight Title Transfer Sale.

    4.2.1 Direct Title for Foreigners

    4.3  Title Retention Sale or Mortgage.

    4.4  Trusts

    4.4.1 Restricted Zone

    4.4.2 Guaranty and Title transfer Trusts

    5.   Powers of Attorney.

 6.            Possible Case Scenario of Sale.

    7.   Sub-Soil Rights

    8.  Other Publication by the Author

 

3. PAMPHLET ON THE "A B Cs" OF BUSINESS IN MEXICO FOR THE FOREIGNER - PAMPHLET - EDITION 2008

Disclaimer                               6.  Banking and Finance.

1.  Introduction.                        6.1 Currency and Controls.

                                                                      

2.  Structural Overview.                 7.  Stock Market.

2.1 Language.                            7.1 Foreign Investor Purchasers. 

2.2 Economics.                           7.2 ADRs in the U.S. 

2.3 Business.                            7.2.1  Rule 144A ADRs.

2.4 Political.                           7.3 ADR Partial Listing.

2.5 Legal.                      

2.6 Customs-Life Styles.                8.  Franchising.

2.7 Communications.                     8.1 Prior 1990.

                                        8.2 New Legislation

3.  Foreign Investment Regulation.      8.3 Problem Areas.      

3.1 Mexican vs. Foreign Investment. 

3.2 Mexicanization.                     9. Maquiladora and Export

3.3 Listing of Percentages Limitations.    Companies.

3.4 Areas of Economic\Business Activity    

3.5 Requirement in Order to Acquire     10. Sales and Contracts

    Authority to Determine Management       with the Federal

    by Foreign Investors                    Government.

                                       

4.  Mexican Commercial and Civil Com-   11.  Environment. 

    panies and Unincorporated Business. 11.1 Problems.

4.1 Commercial Companies.               11.2 Laws.

4.2 Civil Companies.                    11.3 Standards.

4.3 Civil Associations.                 11.4 Filings.

4.4 Unincorporated Business in Mexico.  11.5 Environment Cooper-

4.5 Requirements For Setting Up and          ation Agreement.

    Functioning.                        11.6 NAFTA.

5.  Industry                            11.7 Inspections and

5.1 Price Controls                           Impact Studies.

--

12.  Labor.                             14.5 Deductions.

12.1 Legal Structure.                   14.6 Exceptions.

12.1.1 Employee vs. Inde-               14.7 Title V "Non Residents".

       pendent Agent.                   14.7.1 Flat Tax Rates.

12.2 Employee Benefits.                 14.8 Tax Treaty.

12.2.1 Salary.               

12.2.2 Profit Sharing.                    15.  Customs & Shipping Abroad to Mexico.

12.2.3 Vacation.                          15.1 Legal Structure.

12.2.4 Year End Bonus.                    15.2 Filings, Permits and Duty Payments.

12.2.5 Maternity Leave.                   15.3 Temporary vs. Permanent Importation.

12.2.6 Seniority.                         15.4 Maquiladora (In-Bond) Activities.

12.2.7 Social Security                    15.5 Special Zones.

       and Housing.                       15.6 Planning Strategy for Mexico.

12.3 Dismissal Charge.            

12.4 Discrimination.                      16.  Immigration.

12.5 Unions.                              16.1 Non-Immigrant.

12.6 Foreigners, Employees                16.2 Immigrant.  

     and Immigration.   

                                          17.  NAFTA.

13.  Licensing (Intellectual              17.1 Purposes.

     Property).                           17.2 Free Trade.

13.1 Trademarks, Service                  17.3 Side Agreements.

     Marks and Trade Names.               17.4 New Access to Areas of Business.

13.2 Copyrights.                          17.5 Those Pro and Con.

13.3 Patents.                             17.6 U.S. and Mexico.

13.4 Trade Secrets and                    17.7 Mexico's View.

     Know How.                            17.8 Other Countries.

                             

14.  Taxation.                            18. REAL ESTATE.

14.1 Types.                               19. Civil and Commercial Litigation.

14.1.1 Federal, State and Local.         

14.2 Individuals vs. Created Entities.   

14.3 Resident vs. Non-Resident.         

14.4 Tax Rates.                      

 

4. LABOR LAW OF MEXICO AND BUSINESS - BOOK - EDITION 2002

INDEX

 

1.   Labor Relations

1.1     Quantity of Foreign Laborers vs. Mexican Labors

1.2     Those Over 16 Years Old

1.3     Waivers by Workers

1.4     Duration of the Labor Relation

1.4.1  Specific Job

1.4.2  A Specific Period

1.5     An Indefinite Period

1.5.1  Indefinite Period Contract Form

1.6     One year maximum for the Employee

1.7     Employer Substitution

 

2.   Means of termination of the Labor Relationship

2.1         Justified Termination of the Labor Relation

2.1.1      Causes of Justified Termination by the Employer

2.2         Justified Suspension of the Labor Relation

2.3         Unjustified Dismissal by the Employer

2.3.1      Reinstatement of the Worker

2.3.2      Non-Reinstatement of the Worker

2.3.3      Employer's option in Certain Cases

2.3.3.1   Indemnification in Cases of Employer's Option Not to

              Reinstate

2.4         Cases of Justified Termination by the Employee

2.4.1      Period of Enforcement

2.5         incapacitation of the Employee

2.6        Causes for Termination in General of the Labor Relation

 

3.    Working Shifts or Periods

3.1     Day Shift

3.2     Night Shift

3.3     Mixed Shift

3.4     Maximum Duration of a Shift

3.5     Resting Periods

3.6     Overtime

3.7     Quota for Overtime

 

4.  Rest Days

4.1    25% Increase on Sundays

4.2    Part Time Employees

4.3    Remuneration for Work on Rest Days

4.4    Obligatory Rest Days

4.5    Remuneration for Work on Obligatory Rest Days

 

 

5.   Vacations

            5.1  During the First Four Years of Continuous Full Time Service

         5.2   During Latter Years of Continuous Full Time Service

5.3   Vacation Time for Discontinuous or Seasonal Employees

5.4   Vacation Time Non-Removable/ Non-Remunerable

5.5   The 25% Premium

5.6   When is Vacation Time to be Taken

5.7   The Certificate

 

6 .  Salary

6.1        Salary Integration

6.2        Salary Remuneration

6.3        Equality of Salary

6.4        Yearly Bonus-"Aguinaldo"

6.5        Salary Payment Period

6.6        Bases for indemnification Determination

6.7        Minimum Salary

6.7.1     Economic/Salary Zones

6.7.2     General Minimum Wage

6.7.3     Specific Minimum Wage

6.7.4     Spanish Language Listing

6.7.4.1  English Translation of Listing

6.8        Payment in Cash and Kind of Salary

6.9        Compensations, Discounts, and Reductions Prohibited

6.10      Discounts Authorized Against the Salary

6.11      Lien and Attachment of Salary

6.13      Collection Without Probate

 

7.  Participation in the Employer's Earnings

7.1     Payment Time

7.2     Two Parts of Payments

7.3     The Companies Exempted from Paying Profit Sharing

7.4     Other Exemptions

7.5     Non-Intervention in the Administration

 

8.  Obligation "To Do" of the Employer

 

9.  Prohibitions of the Employer

 

10.  Obligations "To Do" of the Employees

 

11.  Prohibitions of the Employees

 

12.  Obligatory Housing of Employees by the Employer

              12.1  Maximum Quota to "The National Fund for Living     Quarters

12.2  Exceptions

 

13.   Capacitation and Training of Employees

 13.1     With Labor Unions

13.2     Without Labor Unions

 

14.   Preference, Seniority and Promotion

14.1      Seniority Bonus

14.2      Employees' inventions

 

15 .   Female Employees

  15.1  Mothers

 

16.   Minor Employees

16.1      Those Under 16

16.2      Those Under 18

16.3      Special Employer Requirements

 

17.  "Trusted" Employees

17.1      Non-Unionized

17.2      Loss of Confidence

 

18.  Special Regulations for Special Types of Work

 

19.  Labor Unions

19.1     Employee Labor Unions

19.2     Minimum Size

19.3     Registration

19.4     Incorporation

19.5     Officers

19.6     Prohibited Activities

19.7     Federations and Confederations

 

20.  Contracts with Labor Unions

20.1    Exclusion Clauses

20.2    Example of a Collective Labor Contract

20.3    Example of a Deposit Form of a Collective Labor Contract

 

21.  Changing a Collective Labor Contract to a "Contract Law"

21.1  Industry Wide Labor Contract

21.2  Minimum for Request of the Contract

21.3  Convention Necessary

21.4  Minimum for Approval of the Contract

 

22.  The Employee Work Policies

22.1    Example of a Company Work Policy

 

23.  Lay-offs

23.1     Justified Temporary Lay-offs

23.2     Approval for Lay-offs

23.3     Requests for Verification of Continuance of Cause for Lay-Off

23.4     Seniority

23.5     Employer Payments for Lay-Offs

 

24.   Labor Strikes

24.1     Justified Reasons for Strikes

24.2     Requirements for Labor Stoppage

24.3     Procedures for Labor Strikes

24.4     Social or Public Services

 

25.   Employee Labor Risks

25.1     Accidents

25.2     Sicknesses

25.3     Results of Occurred Labor Risks

25.4     Payment for Occurred Labor Risks

25.4.1  Salary Base for Indemnification

25.4.2  Payment for Temporary Incapacity

25.4.3  Payment for Partial Permanent Incapacity

25.4.4  Total Permanent Incapacity

25.4.5  No Deductions

25.4.6  Death

25.5     Job Substitution

25.6    Cases of No Fault to Employer

 

26.    Mexico's Labor Authorities

26.1      Federal Jurisdiction

26.2      The Labor Boards

26.2.1   Federal Boards vs. Local Boards

26.2.2   Conciliation vs. Arbitration

26.2.3   Special Boards

26.2.4   Who are the Board Members?

26.2.5   Procedure Before the Labor Boards on Industrial Matters

26.2.6      Guilty by Default

26.2.7      Labor Board Judgments are Enforceable

26.2.7.1   Who Executes the Judgments ?

26.2.7.2   How Long Does the Defendant Have to Comply ?

26.2.7.3   Attachments in Compliance of Judgment

26.2.7.4   Public Auction of Attached Property

 

27.    Disclaimer

 

 

 

2. REMEDIES FOR CREDITORS IN MEXICO - BOOK 2000 EDITION

§ 1 This Chapter's Scope 1

§ 1.1 Foreigners in Mexico 1

§ 1.2 The Constitution of Mexico and Foreigners 1

§ 1.3 Foreigners in Mexico and Business. 2

§ 1.4 Foreign Investment Regulation 2

§ 2 Knowing You Are Going to Mexico 3

§ 2.1 Documentation Valid in Mexico 3

§ 2.2 Agreements and Contracts. .4

§ 2.3 Format Clauses in International Agreements 5

§ 2.3.1 Language Clause 5

§ 2.3.2 Controlling Law Clause 5

§ 2.3.3 Jurisdiction Clause 5

§ 2.3.4 Immunity Waiver Clause 5

§ 2.3.5 Currency Clause 5

§ 2.3.6 Taxation Clause 6

§ 2.3.7 Clause. 6

§ 2.4 Promissory Notes (pagares) 6

§ 2.5 Letters of Exchange 7

§ 2.6 Checks. 9

§ 2.7 Mortgages. 12

§ 2.8 Avio and Refactionary (Refaccionario) Credits 15

§ 2.9 Pledges (Prenda) 17

§ 2.10 Continuing Guaranty and Aval Guaranty 19

§ 3 United States Court Procedures Enforceable in Mexico 22

§ 3.1 United States Judgments in Mexico 22

§ 3.2 Letters Rogatory (Exhortos) 24

§ 3.2.1 Letters Rogatory Convention. 26

§ 4 Principles of Self-Help Nonexistent in Mexico 27

§ 5 Structure of the Legal System in Mexico 27

§ 5.1 Civil Law Systems vs. Common Law Systems. 27

§ 6 Documents of Evidence and Preconstituted Execution 28

§ 6.1 Documents of Evidence 28

§ 6.2 Private Documents vs. Public Documents 28

§ 6.3 Preconstituted Execution Documents 28

§ 6.4 Public Instruments. 29

§ 7 The Court System in Mexico. 29

§ 7.1 Federal-State Jurisdiction 30

§ 7.2 Constitutional Competency. 30

§ 7.3 Jurisdictional Competency. 30

§ 7.4 Jurisdiction Over Persons. 30

§  7.5 Present-Day Sonora State Judiciary 4-31

§ 7 .5.1 State Supreme Court 4-31

§  7.5.2 First Instance Courts 32

§  7.5.3 The Local Judges-City or Local Courts

(Presidencia Municipal Juzgado Local 33

§  7.6 Present-Day Supreme Court of Mexico 33

§ 7.7 Other Federal Courts 33

§ 8 Acts Preparatory for Suit and Evidence 33

§ 8.1 Statement Under Oath. 33

§ 8.2 Presentment of Chattel. 33

§ 8.3 Presentment of Documentation 33

§ 8.4 Notification  34

§ 8.5 Information  34

§ 8.6 Presentment of Witnesses 34

§ 8.7 Admissions  34

§ 8.8 Recognition 34

§ 8.9 Evidence  34

§ 8.10 Public Fame  35

§ 8.11 General 35

§ 9 Court Preliminary (preventive) Measures (Providencia Precautoria) 35

§ 9.1 Persons vs. Property 35

§ 9.2 Other Measures 36

§ 9.3 Damages and Expenses 36

§ 9.4 At What Stage Are Preliminary Measures Proper 36

§ 10 The Specifics of Court Actions in Mexico 36

§ 10.1 Elements of Writ for Suit 37

§ 10.2 Types of Suits 38

§ 10.2.1 Ordinary Suits-Commercial 38

§ 10.2.2 Executive Suits-Commercial 38

§ 10.2.3 Special Mercantile-Commercial 38

§ 10.2.4 Ordinary Suits-Civil 38

§ 10.2.5 Summary Suits-Civil 39

§ 10.2.6 Oral Suits-Civil 40

§ 10.2.7 Executive Suits-Civil 40

§ 10.2.8 Executive Suits on Real Rights (In Rem)-Civil 41

§ 10.2.9 Mortgage Suits-Civil 41

§ 10.2.10 Third-Party Suits-Civil 42

§ 10.2.11 Arbitration Suits-Civil. 42

§ 10.2.12 Voluntary Jurisdiction Suits-Civil 42

§ 10.2.13 Other 42

§ 10.2.14 Mexican Arbitration Rules 43

§ 10.3 Court Actions Relative to Third-Party Situations 44

§ 10.3.1 Avoidance of Preferences (Acción Pauliana) 44

§ 10.3.2 Simulation Action 44

§ 10.3.3 "Oblicua" Action 45

§ 10.3.4 Right of Retention 45

§ 11 Priority of Liens 47

§ 11.1 General Security vs. Specific Property Security 47

§ 11.2 Public Registry of Property and Commerce 47

§ 11.3 Employee Benefits, Taxes, Social Security, lnfonavit, and

Similar Governmental Liabilities 47

§ 11.4 Subrogation 48

§ 12 Payment of Debts 48

§ 12.1 What Constitutes Payment in Mexico. 48

§ 12.2 Payment in Kind 48

§ 12.3 Discounting with a Third Party 49

§ 13 Termination of Debts 49

§ 13.1 Compensation 49

§ 13.2 Confusion 49

§ 13.3 Condolence of Debts 49

§ 13.4 Novation 50

§ 13.5 Assignments 51

§ 13.6 Delegation of Payment. 52

§ 13.8 Nonexistence and Nullity 52

§ 13.9 Bankruptcy 53

§ 14 Treaties, Conventions, and Trade Agreements for Mexico/

United States 55

§ 14.1 The North American Free Trade Agreement (NAFTA) 56

§ 14.2 The Hague/Haya Convention on Abolishing the

Requirement of Legalization for Public Documents 56

§ 14.2.1 The "Apostilla" (Apostille or Seal and Certification) 57

§ 14.2.2 The Form of the Apostille (Seal and Certification) 57

§ 14.3 Inter-American Convention on Letters Rogatory 57

§ 14.4 Convention on the Taking of Evidence Abroad in Civil or

Commercial Matters  58

§ 14.5 Inter-American Convention on International Commercial

Arbitration 58

§ 14.6 Convention on the Recognition and Enforcement of Foreign

Arbitrational Awards 58

§ 14.7 United Nations Convention on Contracts for International Sale of Goods 58

§ 15 Interest Charged in Mexico 59

§ 15.1 Civil Interest 59

§ 15.2 Commercial Interest 59

§ 15.3 Usury 59

§ 16 United States Vehicles in Mexico. 59

§ 16.1 Permission to Enter Mexico 59

§ 16.2 Bonds 60

§ 16.3 Stolen United States Vehicles Brought into Mexico. 60

§ 16.4 United States Vehicles Used to Commit illegal Acts in Mexico 61

§ 16.5 Means of Location of United States Vehicles in Mexico 61

§ 17 Debtors Running to Mexico to Avoid Creditors 61

§ 18 Notaries Public and Public Brokers in Mexico-62

§ 18.1 Notaries Public 62

§ 18.2 Public Brokers 63

§ 18.3 Mexican Consuls as Notaries 63

§ 19 United States Embassy and United States Consulates in Mexico and

Their Roles 63

§ 20. Criteria for Choosing an Attorney Licensed in Mexico 64

§ 20.1 Experience 64

§ 20.2 Integrity 64

§ 20.3 English 64

§ 21 Assets Checks. 64

§ 21.1 Liquid Assets (Bankers and Accountants) 64

§ 21.2 Fixed Assets (Attorneys and Accountants) 64

§ 21.3 Chambers of Commerce 65

§ 21.4 Others 65

§ 22 Representation in Mexico (Agency and Other Assistants) 65

§ 22.1 Powers of Attorney (Individual and Corporate) 65

§ 22.2 Unauthorized Representatives 65

§ 23 Taking Title to Real Estate Under Uncommon Measures 66

§ 24 Changes in Mexican Law 67

§ 25 Generality of This Study 67