Collateral Registry
The Collateral Registry is a national electronic register that lists out security interests over personal properties, it flags that a secured party is claiming a security interest against the personal property of a debtor.
The existence of the Collateral Registry in Brunei Darussalam aims to ease the access of credit to individuals and businesses, particularly the Macro, Small and Medium Enterprises (MSMEs) by enhancing their ability to leverage their personal properties (movable assets) as another alternative source of funding for their working capital.
The Collateral Registry is a credit management tool that can be used by lenders, including banks and finance companies, to identify any potential competing security interests in the same personal property/collateral.
[1] Security interest is a legal term on personal property (movable asset) that has been pledged, usually to obtain loan. Under the STO, "security interest" means a property right in personal property that is created by agreement and secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and includes the right of a seller in an instalment sale or a sale with retained title, but it does not include a personal right against a guarantor or other person liable for the payment of the secured obligation.
[2] Personal Property (movable asset) is basically any sort of personal property, includes goods, chattel paper, documents of title, intangibles, investment securities, money and negotiable instruments, and that is not land, buildings and fixtures.
Key Functions
The Collateral Registry:
- Enables the registration of a security interest by a creditor, which in turn is publically searchable; and
- Establishes priority between secured creditors.
The Collateral Registry can be accessed here for the following purposes:
Registration
Renewal
Amendment
Search
Discharge
- Public Search can be made for FREE without the need to be registered to the CRI
- Registration of your security interest is valid for 10 years for only $10
- You can extend the validity off your registrations before they expire, to make sure your protection is maintained.
How Much Does Each Function Cost
Registration
BND10
Renewal
BND10
Amendment
BND10
Search
BND3
Discharge
Free
Benefits
When buying goods, searching the register helps buyers make informed decisions because a quick check on the Collateral Registry will ascertain whether the same valuable goods are free from prior financial debt and safe from being repossessed.
When issuing credit, selling on retention of title or consignment, or hiring or leasing of goods, properly registering your security interest can protect your interest should the debtor goes bankrupt or cannot pay you. If you have registered your security interest, you are in the best position to get your goods, or their value back.
Registering your security interest into the CRS is optional. However, it is at your best interest to register. The law is there to protect you. If someone else registers their interest in the same collateral and you don't, you could lose priority. Repossession of the Collateral by a party no longer ensures that you will get your interest back when the Debtor fails to pay his loan.
There is clarity in priority between creditors in the same collateral.
In the event that the Debtor fails to pay and you are a Secured Creditor, you may enforce your rights easily without going to Court.
Who is it for?
Lending Institutions, such as banks and finance companies providing loans
Individuals who are about to purchase personal property such as valuable second hand goods, to make sure the property is free from competing security interests.
Businesses who sell personal property on credit, consignment, or on a retention of title arrangement.