Fiduciary lien is a key Brazilian law collateral instrument securing credit transactions in Brazil.
In a recent decision by the Brazilian Superior Court of Justice (STJ), fiduciary creditors will be able to use a simple email with confirmation of receipt as a means of notifying the debtor in the search and seizure of assets.
One of the essential requirements for the search and seizure action against the fiduciary debtor is prior notification of the debtor, which must be proven at the time of filing the action. Normally, this notification is made by letter with acknowledgment of receipt, in accordance with the legislation that regulates the matter.
This form of notification depends on the identification of the debtor’s address and the correct delivery of the letter by post, factors that can make it difficult and bring uncertainty to the fiduciary creditor, especially if the debtor’s address is unknown and/or if there is an intention of concealment. In other words, the creditor’s claim may be delayed and take months, due to this formal requirement.
The decision brings more speed and assertiveness to fiduciary creditors, strengthening the type of fiduciary guarantee of movable assets. Likewise, the Superior Court follows the growing trend of digitalization of the judiciary, making the process and means of evidence more efficient.
