The Act states that a registered financing statement shall remain valid for the term specified in the registered financing statement which shall not exceed five (5) years. Hence, the period of registration is determined by the information contained in the financing statement which reflects the security agreement between the debtor and the secured creditor.
If information about the debtor changes, the security agreement will often require that the debtor informs the secured creditor of this change as soon as possible. Once informed, the secured creditor will electronically register an amendment to the financing statement through a prescribed form called Form IV. The Filing fee for a Notice of Amendment …
If they is an error or omission in a confirmation statement, the debtor has the right to request the secured creditor to correct that error. Amendment of the registered financing statement is done through a Notice of Amendment (Form IV) and the filing fee is K100. Note further, that the registration of a financing statement …
What if there is an error or omission in a confirmation statement? Read More »
The debtor may obtain a copy of the confirmation statement from either the secured creditor or directly from the Movable Property (Security Interest) Registry System by conducting a search in the collateral registry. The Act requires the secured creditor to provide a copy of the confirmation statement to the debtor so that debtor may verify …
Can the debtor obtain a copy of the confirmation statement? Read More »
A registration cannot be made without the debtor’s prior permission. Any financing statement registered without the debtor’s permission or consent is invalid and does not create a security interest in any assets. Furthermore, the law gives the debtor the right to force the secured creditor to discharge such registration and to compensate the debtor for …
What if the debtor did not give permission for the registration? Read More »
Any person may conduct a search and request a certificate of status of a financing statement without having to provide any reasons. Searches may be conducted using the name or identification number of the debtor or the serial number of the collateral. The statutory fee payable for a search is K20.
A confirmation statement must contain the following information: The debtor’s name, identification number, type, and address The debtor’s gender and a birthdate or if an entity, the gender of the owner The secured creditor’s name, identification number, and type, and address, A general description of the collateral The period of time the registration is effective …
What information is contained in a confirmation statement? Read More »
A confirmation statement is a statement provided by the Registrar electronically to the person who registered the financing statement or amendment to the registered financing statement on registration of a financing statement or an amendment to a registered financing statement in the Collateral Registry. The Confirmation or Confirmation Statement is provided as set in Form …
A financing statement is a notice, in the Prescribed Form called Form I containing the information specified in section thirteen of the Movable Property (Security Interest) Act, that affects a registration to perfect a security interest in the collateral. The debtor has to sign a security agreement or sign consent before the secured creditor may …
The Movable Property (Security Interest) Registry System is important because it is a public database of security interests in movable assets. As such, it allows debtors to prove to secured creditors whether their existing asset has any security interests registered against it. Secured creditors are also able to better assess priority status against the debtor’s …
Why is the Movable Property (Security Interest) Registry System important? Read More »
