Lungu signs into law Security Interest Bill

President Lungu

President Edgar Lungu has signed into law the Movable Property (Security Interest) Bill.

The Act provides for a comprehensive legal framework that will facilitate lenders’ acceptance of movable property as collateral and increase access to credit.

Commerce,trade and industry Minister Margaret Mwanakatwe in a statement says the specific objectives of the Act are to diversify the scope of movable property used as collateral and establish a collateral registry for creditors to register financing statements informing third parties of the security interest they have acquired in some assets of the.

Ms. Mwanakatwe says the other objectives are to provide for enforcement remedies,in case of default,that fairly balance the rights of creditors and protection of debtors, and provide for the registration of financing statements relating to security interests created over movable assets or movable property.

She says the Movable Property Act is a result of Government’s desire to strengthen the credit markets and access to finance by providing for legal rights over security interest in movable property that is pledged as collateral.

And the Layout Designs of Integrated Circuits Bill has been signed into law.

Ms Mwanakatwe says Act is intended to promote the development of layout-designs industry or topographies of integrated circuits in the country.

She explains that the Act provides for a comprehensive legal framework that will facilitate protection of innovative ideas in the area of integrated circuits designs.