A bill to make provision for the registration of security interests in moveable property to be done manually if electronic registration is for any reason not possible was yesterday passed in the National Assembly.
Minister of Tourism, Industry and Commerce Susan Rodrigues, who had read the Security Interests in Moveable Property (Amendment and Validation) Bill 2026 for the first time at the June 5th sitting of the National Assembly, was the only speaker on the Bill at yesterday’s sitting. She did so as members on the opposite side continuously called for the resignation of her colleagues, Minister of Public Works Juan Edghill and Minister of Public Utilities and Aviation Deodat Indar, over the July 18 MV Barima tragedy that claimed over 70 lives with dozens more missing.
The new Act will amend the Security Interests in Moveable Property Act 2024 and will now additionally extend the transitional period prescribed by the Act, and, validate all manual registration of security interests in moveable property done when the electronic registry was not operational, all registration done after the validation period had expired, and all acts and things done in relation to those registration.
“…but where for any reason, including technical difficulties, it is not possible for the Commercial Registry to register security interests in moveable property electronically, the registration of security interests may be done manually in the form, manner and procedure acceptable by the Registrar including any similar form, manner or procedure used under any prior repealed written law,” the Bill states.
The explanatory memorandum of the Bill notes that the Security Interests in Moveable Property Act 2024 provides for the electronic registration of security interests in movable property to be the responsibility of the Commercial Registry. It also states that the Registrar of the Commercial Registry and the staff of the Registry under the direction of the Registrar shall maintain the electronic register. The old Act also provides for a six months transitional period from the commencement of the Act within which prior security interests created by agreements made under prior repealed laws, including the Bills of Sale Act, Cap.90:12, may be registered under the Act to be perfected and otherwise governed by the Act.
However, it was pointed out that due to technical difficulties the electronic registry of the Commercial Registry was not operational for a period, and during that period security interests in movable property submitted to the Registry for registration were registered manually in a form, manner and procedure similar to that provided by laws repealed by the Act.
“The manual registration, and electronic registration after the electronic registry became operational, of prior security interests created by agreements made under prior repealed laws submitted to the Registry for registration, continued for a period after the transitional period had expired,” the Bill states.
Clause 3 of this Bill seeks to amend section 45 of the Principal Act to provide for non-electronic registration of security interests in movable property if electronic registration is for any reason not possible.
And Clause 4 seeks to amend section 94 of the Principal Act to extend the transitional period by another 4 months.
Both amendments are retrospective from the commencement of the Principal Act.
Meantime, Clause 5 seeks to validate all registration of security interests in movable property and acts and things done in relation to those registrations, including fees charged and received, by the Registry, Registrar and staff of the Registry, and acts and things done by all other persons acting in connection with or in support of those registrations, during the periods when the electronic registry was not operational and during the period after the transitional period had expired.
Clause 6 provides a bar to any legal proceedings against any person or authority in respect of any act or omission validated by this Bill.
Discussion