Frequently Asked Questions
What is a Collateral Registry?
The Collateral Registry (The Registry) is a Software System that records and disseminates collateral information to registered stakeholders. It holds the interest of our stakeholders’ charges/collaterals pledged by borrowers to secure credit facilities provided by lenders. Once the Security Transactions Security Act is passed, the Registry will be guided by its dictates.
What is collateral?
A collateral is an asset/property, whether movable or immovable, pledged by a borrower to secure a loan or other credit.
What are the functions of the Collateral Registry?
The Registry, as its name denotes, registers charges/collateral[s] created by borrowers on movable properties in order to secure credit facilities provided by lenders. It provides an avenue for searches to be conducted on the database of the Registry, to ascertain if there are prior security interests in the properties pledged by the borrowers for credit. Our system assists in speeding up loan disbursement, collateral verifications and tracking collaterals. It prevents the transfer of collaterals without notice of the lenders, prevents lenders from duplicating lien/s on collaterals that are on hire purchase agreement and prevents borrowers from using collaterals that are not their own. Many more features are to be implemented.
Who are the users of the Collateral Registry?
Banks, finance companies, money lenders, hire purchase companies, borrowers and other third parties, i.e. legal firms on behalf of their clients.
What are the main functions of the Collateral Registry?
The two basic units of the Registry will carry out the following functions:
- Registration of charges and collateral(s)
- Processing of discharges
- Honouring of search requests
- Processing of collateral requests
Can an individual who does not operate a finance business register their personal items?
To be introduced at a later date: There will be a portal system available to the wider public to register an item at a ‘Point of Sale’ retail outlet. This is to assist the owner in reclaiming an item if it is stolen, lost, or in a dispute.
What is the minimum credit amount that can be registered?
A charge is up to the lender and not the Registry, but our system can accommodate multiple registrations.
What are the prescribed fees for the Registry’s services?
Please see rate chart
What are the benefits of using the Collateral Registry?
The Registry can improve access to credit and will provide small and medium sized enterprises (SME’s), the opportunity to use their movable assets as collateral to access finance for growth. Borrowers and lenders can now be comfortable using appliances, electronics and other non-traditional forms of collaterals to secure a loan. From the farmer, pledging his cows as collateral for a tractor loan, to the seller of goods or services pledging his stock of inventory or expected receivables as collateral and not only landed Property.
The establishment of Merchant Collateral Registry has improved significantly the mechanism for enforcing credit agreements, where an individual does not need to avail themself of the courts to realize collateral[s] in cases of default.
Can your registry software be access anywhere?
Yes, our 24/7 hour system is web-based and is accessible worldwide but currently unique to the Caribbean and in particular Jamaica.
Where do you keep your Server?
In a very safe and secure location and for obvious security reasons, cannot be disclosed to the public. Our main office is located in Jamaica. Please see Contact Tab.
As a lender, do I have to register with the registry?
No, but it would be irresponsible to be using movable collaterals as security for a loan and not register your interest
I am a lender and have been lending by using appliances and other movable collateral as security for many years, so why should I use the registry now?
Many of your movable collaterals have been accepted as collaterals by other lenders and these transactions may very likely, have been done unknowingly to you. We can only find out if your and the other lender’ loan portfolios have been hit with bad debts when you were unable to find the collateral/s used to secure a loan. It is therefore prudent, to use the Registry.
Registry for movable collateral: Why should we care about filing?
- Allows lenders to take non-possessory pledges against all types of movable assets, tangible or intangible, presently-owned or future-acquired
- Transparency is enhanced by making pledges of movable collateral, thereby reducing risk for lenders
- Establishes the benchmark by which priority rules can be applied
- Helps pledge, by providing information for decision making in terms of:
- Contact information about the prior pledge that the current pledgee would need
- Whether pledger’s asset may be subject to a prior pledge