Security Interests in Movable Property Regulations, 2020

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REPORT ON THE SECURITY INTEREST IN MOVABLE PROPERTY REGULATIONS, 2020
PRESENTED
BY
THE PORTFOLIO COMMITTEE ON THE ECONOMIC AND DEVELOPMENT CLUSTER
National Assembly Phone: +266 22323035 P. O. Box 190 Fax: + 266 22310438
Maseru 100
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  1. INTRODUCTION
    On the 05th October, 2020, the Hon. Minister of Finance tabled Security
    Interest in Movable Property Regulations, 2020 in the House. The Regulations
    were referred to the Portfolio Committee on the Economic and Development
    Cluster for consideration in terms of Standing Order No.100 (3). The
    Committee invited the Ministry and Central Bank of Lesotho (CBL) to a briefing
    session in accordance with Standing Order No. 101 (2).
    The Committee, therefore, presents this report to the House for
    consideration.
  2. MINISTERIAL BRIEF
    The Regulations are made pursuant to Section 44 of the Security Interest in
    Movable Property Act, 2020.
    The Ministry indicated that the intention of the Regulations is to operationalize
    access to the registry established under Section 30(1) of the Act, which
    provides for an electronic Registry for publicizing the existence of security
    interest in movable property, perfecting the security interest in collateral,
    making it a requirement for filing to be done on the registry only not physical
    or paper based and also for accessibility of the registry except for reasons
    beyond control of the Registrar. The regulations further provide for
    establishment of a client account at no cost in a format approved by the
    Registrar.
    Furthermore, the Regulations are intended to improve access to finance
    because borrowers will pledge their rights in movable property to lenders as
    security for loans and there will be an increase in credit guarantees because
    borrowers will be using both movable and immovable property for securing
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    debts. There are no financial implications to be incurred during the
    implementation of these Regulations and all the relevant stakeholders were
    consulted.
  3. COMMITTEE’S DECISION
    The Committee has resolved to adopt all clauses of the Regulations.
  4. RECOMMENDATIONS
    The Committee recommends for the approval of these Regulations and the
    adoption of this report by the House.

    Members of the Committee
  5. Hon. M. R. Khati ( Chairperson) 2. Hon. S. D. Mangobe 3. Hon. M. J. Maime 4. Hon. T. Kibane 5. Hon. L. K. Mokoma 6. Hon. T. Aumane 7. Hon. M. C. Hlao 8. Hon .T. T. Mosena 9. Hon. L. Hlalele 10. Hon. T. L. Mokhosi 11. Hon. M. Tlali 12. Hon. T. Lerafa 13. Hon. M. Hlalele 14. Hon .M. Motoboli 15. Hon. V. Malebo 16. Hon. K. Mathaba 17. Hon. S. Setsabi 18. Hon. L. Mohlajoa 19. Hon. H. Lehana 20. Hon. L. Litsoane