The Secured Transactions Order and Collateral Registry System will be introduced at the end of this year. Under the system, businesses and individuals are allowed to leverage their movable property as collateral to their respective loans. The Order also encourages banks to give out loans, as the loans will be secured against the movable assets, which can be enforced in cases of non-payment.
This was explained at the Briefing of the Collateral Registry System and the Secured Transactions Order held this afternoon. Sheree Mcdonald, a Senior Solicitor from New Zealand Companies Office in her briefing shared that the Personal Property Security Registry (PPSR) system has similar roles and functionality as the upcoming Brunei Darussalam’s Collateral Registry System. Since the launching of the PPSR in 2002, the PPSR system has proven to be a vital tool for businesses in New Zealand by allowing creditors to register their security interest in leased goods or collateral and to protect these goods.
With the launching of the Collateral Registry System and the enforcement of the Secured Transactions Order this December, businesses in Brunei Darussalam will be able to fully utilise the option. The briefing was attended by senior officers from various government agencies and financial institutions, as well as invitees from law societies and businesses including SMEs.
Source: Radio Television Brunei