of the obligation of the debtor inthe event the latter fails to do so. It also guarantees the payment ofcompensation or penalty for non-fulfillment of an obligation undertaken by thedebtor.The surety may be granted by individuals or legalentities, including banks, whereby the debtor hires a financial institution to actas guarantor of an obligation.It is very common in rental agreements and in some kinds of loans.3. Bill of Exchange (letra de cambio)It is a Marketable title. It consists of a payment order bymeans of which an individual demands that another individual pays a certainamount to a third party. It comprises details such as payment, date and placeto perform it. This is the same Bill of Exchange used in the US and in Europe. However, in Brazil its use is very limited. Only markets where the players are used to it actually use it. Most people will prefer a Promissory Note (see below).4. Promissory Note (nota promissoria)An instrument of credit represented by anunconditional promise in writing between two parties, signed by one who agreesto pay on a certain date a certain sum of money to the other or the bearer ofthe promissory note.Thepromissory note is more widely used in Brazil, in comparison with the Bill ofExchange.5. Commercial Pledge (penhor mercantil)Commercial pledge is to have a commercial goodensuring the fulfillment of an obligation. It becomes valid with the transference of possession of the property of the good by the debtor to thecreditor.The pledge shall be in written form and isusually registered before the Registry of Deeds and Documents. This is not too common.6. Security deposit of instruments ofcredit (caucao de titulos de credito)Derived from the commercial pledge, the securitydeposit of instruments of credit is a guarantee established over credits heldby the guarantor. In the security deposit, the object of theguarantee is the right of the guarantor represented by a negotiable instrument.Therefore, the need to guarantee demands the delivery of the instrument to thecreditor, by means of an agreement executed between the parties. Through the security deposit agreement, thecreditor becomes able to exercise all the rights to the instrument of credit,but always on behalf of the debtor, ie, there is no transfer of the property ofthe instrument of credit. This is a common kind of guarantee, since it is easy to manage.7. Trust receipt (alienacao fiduciaria)The trust receipt operates by means of thetransfer of ownership of a certain good to the creditor in order to secure thefulfillment of an obligation of the debtor, who maintains the direct ownershipof the good, as depositary. In this type of guarantee, if the debtor fails tosettle the obligation at the due date, then the creditor may require action ofsearch and seizure of the sold good, and after taking possession of such good,it may sell it to a third party and settle the outstanding debt.This is more commonly used by banks, in lease andfinancing agreements.8. Antichresis (anticrese)The antichresis grants the creditor the right ofreceiving the real property from the debtor and also the right to earn profits fromsuch real property for the term the contract is in force. This is rarely