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Codification, Valuation and Registration of Movable Properties as Collateral for Credit (Directive No. 186/2020)

National Bank Of Ethiopia186/2020

Summary

This directive establishes rules for the codification, valuation, and registration of movable properties as collateral for credit.

Who's affected

Businesses and individuals seeking credit, financial institutions, and property valuers.

Action required

Financial institutions and businesses should familiarize themselves with the procedures for codifying, valuing, and registering movable properties as collateral for credit.

Key points

4
  • Directive No. 186/2020 governs movable properties as collateral.
  • Covers codification, valuation, and registration.
  • Aims to improve credit access.
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    • Issued by the National Bank of Ethiopia.

Requirements

4
  • Movable properties must be codified according to the directive.
  • Valuation of movable properties must adhere to the prescribed standards.
  • Registration of movable properties as collateral must follow the outlined procedures.
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    • Financial institutions must maintain accurate records of collateral.

Rights and permissions

3
  • Borrowers have the right to clear information regarding the collateral requirements.
  • Financial institutions have the right to security over registered movable properties.
  • The public has a right to access information on registered collateral.

Restrictions

2
  • Restrictions on the types of movable properties that can be used as collateral may apply.
  • There may be restrictions on the transfer or disposal of movable properties used as collateral without the consent of the financial institution.

Penalties

1
  • Penalties may be imposed for non-compliance with the directive, including fines or other regulatory actions.

Objectives

4
  • To provide a clear framework for the codification of movable properties.
  • To establish standards for the valuation of movable properties used as collateral.
  • To set procedures for the registration of movable properties as collateral.
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    • To enhance access to credit by utilizing movable properties as collateral.

Organizations

1
  • National Bank of Ethiopia
Original sourcehttps://justice.gov.et/en/directives/codification-valuation-and-registration-of-movable-properties-as-collateral-for-credit-directive-no-186-2020/
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