Movable Property Security Right Proclamation No. 1147/2019.

This Proclamation shall apply to rights in movable property created by agreement that secure payment of credit or other performance of an obligation. This Proclamation shall not apply to: security right in securities traded on exchanges; a mortgage of a ship with all accessories required for its use subject to the Maritime Code; among others. Under the Proclamation "movable assets" includes, inventories, agricultural products, incorporeal assets, corporeal assets, the right to use land unless prohibited by pertinent laws; a security right under a hire-purchase agreement, security trust deed, trust receipt, commercial consignment, mortgage of a business, sale with ownership reserved, sale with right of redemption, security rights in certificated securities, and security rights in warehouse receipts, motor vehicle, trailer, agricultural machinery, construction machinery, industrial machinery, and other properties excluding land, house and building.
Part 2 provides for creation of a Security Right by Agreement and its elements: obligations that might be secure; right to proceeds; contractual limitations; etc. Part 3 effectiveness of Security Rights against third-party includes provisions on transfer. Part 4 establishes the Collateral Registry for the purposes of receiving, storing and making information accessible to the public in registered notices with respect to security right and right of non-consensual creditors. The Part also provides for registration discipline. Part 5 priority right, recognizes the priority on the secured creditor and provides details on how to deal with priority among competing security rights created by the same grantor and from different grantors and the effect of priority security rights in proceeds and other situations. Part six concerns rights and obligations of the parties and third party obligors