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{
    "id": 720140,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/720140/?format=api",
    "text_counter": 171,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "registration of notices relating to security rights and moveable assets. So, this is the history, the objects and principle behind this Bill. Let me go to the Bill. Part I of the Bill, as usual, provides for preliminary matters like the short title, interpretation, objects and the scope of application. The proposed Bill shall apply to every transaction that secures payments or performance of an obligation with regard to its form and to the person who owns that collateral. Specifically, the Bill applies to chattels, mortgages, credit purchase transactions and credit sale agreement, which is very common in Islamic banking. It involves floating and fixed charges, trust indenture, trust receipts and any other transaction that secures payment or performance of an obligation. The proposed Bill shall not, however, apply to security rights in the book entry securities under the Central Depositories Act. Part II of the Bill provides for the creation of a security right by recognising that a security agreement must be in writing in order to have a binding legal effect. So, whatever will happen must be done within the law and be written. What does it do? It recognises the security right as a right in a receivable effect between the guarantor and the secured creditor and against the debtor as mentioned in the Bill. Part III of the Bill provides for the security right in any moveable property to be effective against any third party. For any security right in any moveable property to be effective against a third party, a notice in respect to such security must be registered with the Registrar. In any case, that is the new office that we are going to establish under this Bill. Part IV of the Bill provides for the establishment of a registry in which notices relating to security rights may be registered. This Bill sets out the procedure for registering such notices. Of course, if you want to do subsequent amendments, that procedure is also provided for in the Bill. This Bill also provides that a notice for registration of a security right must be in the English language. It should not be in vernacular or in a language that is not official. The effective period shall not be more than 10 years which may however be extended. This is how to create access to credit for the small and medium enterprises by giving them credit that they can pay within a reasonable term under very flexible conditions. Part V of the Bill provides for priorities among competing security rights. It recognises that a guarantor may use single collateral to create more than one security right. So, you cannot use it more than once. Part VI sets out the rights and obligations of the parties to the secured transaction. This Bill recognises that guarantors or the secured creditor in possession of collateral must exercise reasonable care with an obligation of the secured creditor to return to the guarantor upon full satisfaction of the secured. The Bill also provides for general provisions including powers of the CS to prescribe regulations. Every law must have regulations. It gives the CS in charge of this department powers to prescribe certain regulations."
}