Geez Law & Business ግዕዝ ህግና ቢዝነስ

The Collateral Registry is an electronic system that stores information regarding security rights in moveable property. The Collateral Registry is open to the public and allows secured creditors to register their security interests and confirm the existence of security interests in moveable property. With regard to the collateral, the secured creditor has precedence over other creditors. The priority of competing security rights is established by the sequence of registration. The secured creditor may possess the collateral only if the grantor has consented to this under the security agreement or if the grantor does not protest during the collateral's possession. If the grantor opposes to the secured creditor possessing the collateral, the secured creditor may possess the collateral with the assistance of the police pursuant to a Collateral Registry Office order. The moveable Property Security Right Proclamation No. 1147/2019 is a significant change in Ethiopian law since it establishes a modern and comprehensive legal framework for security rights in moveable properties. The Proclamation will enable enterprises and individuals gain access to finance while simultaneously protecting the rights of secured creditors. To view the complete text of this legal content download the file. (DABLO)

What You Should Know About Ethiopian Movable Collateral Law A security agreement establishes a security interest in movable goods. The grantor and secured creditor must execute the security agreement in writing. The security agreement must also identify the secured obligation and describe the collateral in reasonable detail. A security interest in movable property can be enforced against third parties in three ways: (1) When the secured creditor registers a notice with the Collateral Registry. (2) When the secured creditor has possession of the corporeal asset. (3) When the secured creditor gains control of the right to payment of monies credited to a deposit account or electronic security.

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