The newly established Collateral Registry is now fully operational, marking a major step in transparency and security in the local financial and business sector. This was announced by Attorney General and Minister of Legal Affairs, Anil Nandlall, during his weekly ‘Issues in the News’ programme.
With this new registry, individuals and businesses can now use movable property such as vehicles as collateral when seeking loans or credit. This includes transactions traditionally executed through hire purchase agreements, bills of sale, or other forms of credit sales.
The Collateral Registry comes under the Security Interest in Movable Property Act No. 20 of 2024
“This piece of legislation introduces a modern framework for the registration of security interests in movable property and represents a significant milestone in advancing Guyana’s business and financial regulatory environment,” Nandlall stated.
Nandlall revealed that the Collateral Registry had faced initial technical challenges, but those issues have since been resolved.
“That registry was not up and running because of some technical difficulties. I am pleased to announce that as of today [Tuesday], the registry is up and functioning,” he said.
With the system now active, bankers, retail suppliers, automotive dealers, and other businesses involved in credit-based sales can register their security instruments directly with the Collateral Registry.
In addition to launching the new registry, Nandlall also revealed that the Bills of Sale Act has been repealed. He further stated that in the past, bills of sale were among the most commonly used instruments for securing credit involving movable property, such as vehicles purchased on credit. Under the new system, these transactions will now be handled through the Collateral Registry, which ensures clear registration and enforcement of security interests.
“So you have a modern framework now through which you can access financing, and the banks, auto dealers, and businesses who are engaged in these transactions now have a modern framework within which they can transact their businesses,” the Minister said.
The Registrar of Commerce has since been instructed to issue a public notice announcing the functioning of the Collateral Registry. Training sessions have also been conducted for banking and commercial stakeholders, as well as staff members of the registry, to ensure smooth implementation and use of the new system.
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