Why is the Movable Property (Security Interest) Registry System important?

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 collateral. For example, before taking a debtor’s equipment as collateral for a loan, the secured creditor must search the Collateral Registry to make sure no other secured creditor already has a security interest in the equipment. Nonetheless, a debtor may offer an asset as collateral to multiple secured parties who will decide whether the asset has sufficient value to properly secure all loans acquired.