THE MEXICAN BANK TRUST, It's history and how it works

It is a pleasure to be with you today as a representative of the Foreign Relations Secretary and to make a few comments about the Mexican trust, the fideicomiso, which is the form and manner in which physical or legal foreign persons are able to hold real properties within the restricted zone of our country. First, before entering into the theme in detail, would like to make a brief analogy regarding real rights of property and its union with the trust. In accordance with article 27 of the Constitution the ability to acquire lands and national waters rest with only native or naturalized Mexicans or through companies created under Mexican Law

In spite of being the primary principle of property rights, this constitutional precept permits the Mexican State to concede these same property rights to foreigners, providing they agree before the Secretary of Foreign Relations, to be considered as nationals regarding these assets and not to invoke the protection of their governments in these matters. The penalty for violation of this provision is forfeiture of the subject property to the nation. This agreement is the first limitation for any foreigner acquiring property in this country. But it becomes more rigid in the strip 0f 100 kilometers along the borders and 50 kilometers along the beaches for the express prohibition in our magna carta of acquisition of these lands by foreign individuals or legal entities.

This prohibition which is still in effect today, is based upon happenings in the middle of the nineteenth century when we lost huge amounts of land that were in the hands of United States invaders. Our legislators of that epoch then had to find a way to impede further loss of our territory by prohibiting foreign acquisition of large amounts of land along the borders and and the coasts, thereby creating what is now known as the restricted zone.

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