Atty. Prudence Angelita A. Kasala, LLM

STATE OF MOVABLE COLLATERAL REGISTRY

STATE OF LENDING AGAINST MOVABLE COLLATERAL Fragmentation of legal framework - in the types of security interest - created by the law’s requirement that recording of chattel mortgages be done in the provincial ROD offices Unnecessary Complexity - burdensome requirements that cause great costs of both time and money Cost of creation and registration of chattel mortgages - major disincentive to use of chattel mortgage to secure financing Cost, time and inflexibility of enforcement process - The Chattel mortgage Law calls for extended periods of notice before commencement and before disposition that may cause loss of value of the collateral or even its fraudulent transfer of concealment

PHILIPPINE JOURNEY 1.Recognition of the need to reform embodied in the Philippine Medium Term Development Plan 2.Engagement of stakeholders in the project towards the creation of a more favorable environment for movable collateral lending 3.Use of technology to facilitate accessible movable collateral registry 4.BSP Circular 855 on credit risk management 5.Awareness of the Intellectual Property Office on valuation of intangible asset 6.Drafting of amendatory laws