Registering Collateral

The law requires the secured creditor to cancel or discharge the registration after the loan has been repaid and all obligations have been satisfied under the security agreement. However, sometimes secured parties do not automatically do so. In the event that the secured creditor doesn’t cancel the registration, the debtor may send a formal request […]

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. It can be for a period of time or for a perpetual period. However if the collateral is described as consumer goods in the financing statement, this period of

If the error is detrimental to the debtor, for example if a security interest is created over inventory only but the secured creditor described the collateral as “all inventory and equipment”, the debtor has the right to request the secured creditor to correct that error. If the error is in some details not relevant to

The word priority refers to the right of a secured creditor to derive the economic benefit of a security interest in preference to the right of a competing claimant. Issues of priority arise in situations in which the debtor has granted security interests to multiple secured creditors in the same collateral or the debtor has

A secured creditor must discharge the registered financing statement within fourteen days after all obligations under the security agreement creating the security interest have been performed. A Notice of discharge must be electronically filled through Form IV and a fee of K100 must be paid. In the event that the secured creditor does not file

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

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

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