What is the purpose of the Movable Property (Security Interest) Registry System?

The Movable Property (Security Interest) Registry System fulfills two essential functions. The first objective is to notify parties about the existence of security interests in movable property. The registry gives transparency to the credit system by giving publicity to security interests that exist in particular collateral. Secondly, the Movable Property (Security Interest) Registry System establishes the priority of creditors vis-a-vis third parties. The priority scheme for secured creditors is established by the day and time of registration of a financing statement. The Registry also provides a platform for conducting searches on the database so that secured creditors can find out if there are prior security interests in the properties pledged by the debtors as collateral for a loan.