TRYNESS MBALE, Lusaka
GOVERNMENT intends to create registry for movable assets and provide for an appropriate legal and regulatory framework for security interests created over personal property, among others.
This is aimed at diversifying the scope of personal properties that lenders can accept as collateral.
To realise this, the Bank of Zambia (BoZ), Patents and Companies Registration Agency (PACRA) and the Ministry of Commerce, Trade and Industry have released a draft Movable Property Security Interest Bill (MPSB) to diversify the scope of personal properties that lenders can accept as collateral.
The development of the draft MPSB follows an assessment of the current legal and institutional framework that enables the use of movable assets as collateral.
According to a BoZ statement yesterday, the assessment revealed that the legislative and institutional frameworks are not adequate to enable the use of moveable assets as security.
“BoZ, PACRA and the Ministry of Commerce, Trade and Industry have released a draft MPSB and are inviting written comments on the proposed law from stakeholders,” the statement reads.
The objective of the MPSB is to provide for the establishment of a collateral registry for movable assets and provide for an appropriate legal and regulatory framework for security interests created over personal property, among others.
The central bank says as part of the consultative process, stakeholders are invited to submit written comments on the proposed law.
It also says the consultation document is available on the BoZ and PACRA websites to the public.
The deadline for comments is July15, 2015 and should be sent through the director Non-Bank Financial Institutions Supervision Department at BoZ.