This Act applies to a security right in a movable property, including (a) every transaction that creates a security interest, without regard to the form of the transaction, type of the movable property, status of the debtor or secured creditor, person who holds title to the collateral, or nature of the secured obligation; (b) the transfer of accounts receivable; (c) the lease of a tangible asset; (d) a commercial consignment; (e) a security interest created by judgement of a court; and (f) a security interest created by a Government lien. Without limiting the generality of subsection 3(2) this Act applies to a floating or fixed charge; a hypothec; a hire purchase agreement or instalment sale agreement; a conditional sale agreement; an agreement with a retention of title provision; a finance lease; a sale and lease-back; a trust indenture and trust receipt; and a pledge.
The Minister may, by Order published in the Gazette, designate a public body as a Collateral Registry Office which shall be responsible for the day-to-day administration of the Registry and any other related functions; the Act also establishes an electronic Collateral Registry to receive, store and make accessible to the public, information on any registered notice with respect to a security interest and a right for non-consensual creditor. Part 3 provides for the discipline of creation of security interests; provisions applicable to collateral; applicable to obligations; continuation of security interest after transfer and in proceeds; extinguishment of security interests; tangible assets and intellectual property used, among others. Part 4 indicates primary methods for perfection of security interests encompassing as well perfection of security interest in consumable goods and in agricultural produce. Part 5 regulates priority of security interests and third party interests and Part 6 enforcements.
Agricultural produce under the Act means tangible assets of a debtor engaged in farming, and includes (a) crops or horticulture produce, whether future, growing, or severed from land, and after severance whether subjected to any treatment or manufacture; (b) timber, both standing and growing; (c) livestock, bees and poultry, and the produce and progeny thereof; (d) game farming; (e) aquatic assets produced in aquaculture operations; (f) seeds, fertiliser and manure; and (g) any other agricultural and horticultural produce, whether subjected to any treatment or process of manufacture. A secured creditor may perfect a security interest in agricultural produce that is stored, kept, growing or grown, as the case may be, on any land or premises; this perfected security interest in agricultural produce is not affected by a subsequentsale, lease, mortgage or other encumbrance of, or upon, the land on which the agricultural produce is.