Glossary entry (derived from question below)
Spanish term or phrase:
Crédito Ejecutivo
English translation:
provision for enforcement / foreclosure costs
Added to glossary by
Charles Davis
May 21, 2019 17:35
4 yrs ago
3 viewers *
Spanish term
United States
ESEN Translator, Proofreader, Editor
Native in: English (Variant: US)
Works in: Spanish to English
Crédito Ejecutivo
Spanish to English
Law/Patents
Real Estate
Puerto Rico
Seeking some information about what "crédito ejecutivo" might mean in the context of property registry entries from Puerto Rico from 1948-present. This appears to be an additional sum of money that is taken out along with the money for a mortgage on a property, but not clear what it is for and I cannot find any good translation options or parallel texts in English. I have many examples of this, but here is a pretty typical one:
"la parte deudora constituye hipoteca sobre esta finca en garantía de pagaré a favor de XXXXX, por la suma de XXX dólares, con intereses al cuatro por ciento anual [...] garantizandose además XXX dólares para intereses adicionales, igual suma para CRÉDITO EJECUTIVO, igual suma para remediar cualquier incumplimiento del duedor y otra suma igual para adelantos dentro del contrato."
Research seems to indicate that this could be some kind of sum used as a foreclosure loan or hard money that allows the property owner to stall foreclosure proceedings in order to restructure. (see possible information here https://thelawdictionary.org/article/is-a-hard-money-loan-an...
But its unclear why a foreclosure loan sum would be included in a mortgage... except if its just an option being made available IN CASE in the future the owner were to need it?? Anyone with mortgage knowledge, your assistance here is greatly appreciated! Thanks in advance
"la parte deudora constituye hipoteca sobre esta finca en garantía de pagaré a favor de XXXXX, por la suma de XXX dólares, con intereses al cuatro por ciento anual [...] garantizandose además XXX dólares para intereses adicionales, igual suma para CRÉDITO EJECUTIVO, igual suma para remediar cualquier incumplimiento del duedor y otra suma igual para adelantos dentro del contrato."
Research seems to indicate that this could be some kind of sum used as a foreclosure loan or hard money that allows the property owner to stall foreclosure proceedings in order to restructure. (see possible information here https://thelawdictionary.org/article/is-a-hard-money-loan-an...
But its unclear why a foreclosure loan sum would be included in a mortgage... except if its just an option being made available IN CASE in the future the owner were to need it?? Anyone with mortgage knowledge, your assistance here is greatly appreciated! Thanks in advance
Proposed translations
(English)
| 3 +2 | provision for enforcement costs |
Charles Davis
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| 3 | All-in advance for the legal costs of a possible foreclosure sale |
Adrian MM.
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Change log
May 28, 2019 17:29: Charles Davis changed "Edited KOG entry" from "<a href="/profile/1735400">Mary McKee's</a> old entry - "Crédito Ejecutivo"" to ""provision for enforcement costs""
Proposed translations
+2
29 mins
Selected
provision for enforcement costs
I'm not a mortgage expert and there may be a better form of words, but this expresses the idea as I understand it. It seems to mean an extra element of the mortgage payments intended to provide a credit (crédito) available to the lender to cover the costs it incurs in the event of default, that is, the costs of enforcement (ejecución, hence ejecutivo). So the lender is assured in advance of being able to recoup its costs (including legal fees) in that eventuality.
I base this on the following two Puerto Rican documents:
"las cantidades estipuladas por las partes en el contrato de hipoteca en concepto de intereses (legales o moratorios), y las costas, gastos y honorarios de abogado (crédito ejecutivo) están exentos en el cómputo de la cuantía base para el pago de sellos de rentas internas."
https://www.ramajudicial.pr/junta/preguntas/sep06/DERECHONOT...
"[...] contrajo originalmente con un banco de la localidad un préstamo por la suma principal de $750,000.00, intereses al 6.625 anual y otros créditos hipotecarios para cubrir $75.000.00 de intereses en exceso de los garantizados hipotecariamente por ley, más otra suma igual en calidad de crédito ejecutivo para costas, gastos y honorarios de abogado en caso de reclamación judicial en cobro de lo prestado."
https://vlex.com.pr/vid/lexta20101029-04-u-s-685003873
I base this on the following two Puerto Rican documents:
"las cantidades estipuladas por las partes en el contrato de hipoteca en concepto de intereses (legales o moratorios), y las costas, gastos y honorarios de abogado (crédito ejecutivo) están exentos en el cómputo de la cuantía base para el pago de sellos de rentas internas."
https://www.ramajudicial.pr/junta/preguntas/sep06/DERECHONOT...
"[...] contrajo originalmente con un banco de la localidad un préstamo por la suma principal de $750,000.00, intereses al 6.625 anual y otros créditos hipotecarios para cubrir $75.000.00 de intereses en exceso de los garantizados hipotecariamente por ley, más otra suma igual en calidad de crédito ejecutivo para costas, gastos y honorarios de abogado en caso de reclamación judicial en cobro de lo prestado."
https://vlex.com.pr/vid/lexta20101029-04-u-s-685003873
Peer comment(s):
| agree |
Adrian MM.
: perhaps: an all-in advance for foreclosure expenses (& contesting the mortgagor's equity of redemption to stall a foreclosure sale)// ejecución hipotecaria = foreclosure. La acción hipotecaria in E&W euphemistically called a 'mortgage repossession action'
9 mins
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I was in two minds whether to express it as enforcement or foreclosure. I think you could justify either. Thanks, Adrian!
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| agree |
Melisa Espeche
8 hrs
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Many thanks, Melisa :-)
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4 KudoZ points awarded for this answer.
Comment: "Thank you! Have decided to use this option"
1 day 5 mins
Adrian MM.
Austria
Austria
Native in English
Specializes in field
Austria
Retd.T&I, Barrister & Austro-Advokat
Native in: English (Variants: Scottish, British) 
Works in: Spanish to English, English to Spanish, French to English, and 5 more.
Related KudoZ points
:
50
All-in advance for the legal costs of a possible foreclosure sale
A combination of Charles D's and Helena Ch's shrewd ideas and to give a nominal choice.
Not sure about the US, but I am sure this - in E&W where I am not allowed for reasons of modesty to say I am a 'mortgage expert' - would be described as an 'advance' added or 'tacked on to and consolidated with' the mortgage loan and regd. as part of the same.
PS An English High Court judge once famously quipped in a case well-known to (long-suffering) English & Welsh land law students: 'No one by the light of day ever understood an English mortgage of land'.
Not sure about the US, but I am sure this - in E&W where I am not allowed for reasons of modesty to say I am a 'mortgage expert' - would be described as an 'advance' added or 'tacked on to and consolidated with' the mortgage loan and regd. as part of the same.
PS An English High Court judge once famously quipped in a case well-known to (long-suffering) English & Welsh land law students: 'No one by the light of day ever understood an English mortgage of land'.
Example sentence:
Fees and Costs. Defaulting homeowners usually are charged late fees on every missed mortgage payment right up until their home's foreclosure sale
Discussion
más otra suma igual en calidad de crédito ejecutivo para costas, gastos y honorarios de abogado en caso de reclamación judicial en cobro de lo prestado.
https://vlex.com.pr/vid/lexta20101029-04-u-s-685003873