The Latin word schedŭla is the diminutive of scheda, which can be translated as “sheet of paper”. The notion came to our language as a certificate: a paper that has certain written information.
The most common use of the concept refers to an official document that is used to notify or prove something. One of the best known cards is the identity card, which can acquire different names depending on the country (citizenship card, identity document, and others).
According to abbreviationfinder, the identity card is issued by the State. Each citizen has their own identity card, which includes personal data that allows their identification: full name, date and place of birth, etc. The identity card is used by people to carry out various procedures; State authorities, for their part, can exercise control tasks through these documents.
In Argentina, the National Directorate of National Registries of Motor Vehicle Ownership and Pledge Credits (DNRPA) is an official body that issues the Vehicle Identification Card, also called the Green Card. This credential is given to the owner of a car, van, truck, motorcycle or special machinery with their personal data and vehicle information.
The DNRPA also issues the Identification Card for Authorized to Drive, known as the Blue Card. In this case, the document constitutes an authorization that the owner of a vehicle grants to another person to drive his car or motorcycle.
The mortgage bonds, on the other hand, are titles that emits a financial institution, using as collateral the mortgage loans granted. These cédulas pay a fixed interest.
The mortgage certificate offers the client a return in exchange for the amount invested in this class of securities. The financial entity that issues it relies on its portfolio of mortgage loans to provide the guarantee that characterizes it; In other words, all the loans that the institution has serve to guarantee the certificates it issues.
This is directly linked to one of the limitations of this title: it can only be issued by official credit institutions, mortgage companies and savings banks. Regarding its term, it is possible to say that it is between one and three years, depending on different factors.
According to the type of guarantee, a classification arises in which we find two classes of mortgage certificate:
* mortgage certificate with special guarantee: its issuance takes place with the guarantee of one or more mortgage loans in particular, which must be well defined;
* Mortgage certificate with global guarantee: in this case, it is the set of all the entity’s loans that provides customers with the guarantee at the time of issuance of the title. It is worth mentioning that there is an exception, and it occurs with loans that act as backup for mortgage bonds of the previous type.
It is correct to say that the mortgage certificate is a very suitable instrument for financing activities related to construction, for example; However, in order for it to be effectively implemented, certain requirements must be met, such as the following:
* A sound macroeconomic environment without change sudden or exchange or monetary instability, unemployment peaks, and so on;
* a rigid and efficient registration, information and cadastre system, in addition to a transparent appraisal process and agility in the execution of mortgages in the event of debtor failures;
* adequate mechanisms to provide liquidity, that is, a low-cost sale in the shortest possible time;
* The debtor must have confidence in the scheme, as well as pension entities and issuers must be familiar with stock market operations.