Assets and property registry
The Collateral Registry is a body established pursuant to Section 18 of the Borrowers and Lenders Act, 2020(Act 1052) to principally register security interests and collateral created by borrowers to secure credit facilities provided by lenders.
Collateral is any asset/property [be it movable or immovable] pledged by a borrower to secure a credit facility.
The functions of the Collateral Registry are;
- To register security interests;
- To keep and maintain a Register of security interests;
- To keep and maintain a platform for conducting of searches in security interest; and
- To perform any other function determined by the Bank.
Our users include but are not limited to Banks, Specialized Deposit-Taking Institutions, Non-Bank Financial Institutions and the General Public.
No, Section (1)(3)(a) and (b) of the ACT 1052 provides for security interests exempted under this ACT.
Under section 25 (2) of ACT 1052, a registration shall remain effective until discharged by the registrant.
The fees for the Registry services are as follows:
a. Registration of security interest; GHS 10.00
b. Searches; GHS 5.00
c. Late Registration of security interest; GHS 25.00
• Registration of security interests – lenders can perfect their interest in collateral against third party claims by registering their security interests with the Collateral Registry.
• The Registry has improved significantly the mechanism for enforcing credit agreements, where a lender need not have to go to court in order to realise a security interest in the event of a default under the credit agreement by the borrower. Per Section 61 (1) (b) of Act 1052, a lender may realise a security interest in collateral registered under this Act, without initiating proceedings in court.
• The Collateral Registry also provides an electronic software system on which searches may be conducted to ascertain whether an asset such as land, building, vehicle etc. being purchased or presented as collateral already has an encumbrance by way of a security interest.
• Lenders can take comfort in the supremacy provision under Section 33 of Act 1052, which states that registrations of security interests registered under this Act, shall, irrespective of the time of registration, have priority over any other security interest registered under any other enactment.